Economy
Manufacturing competitiveness key to India's progress
India has convinced a lot of people and the world is making big bets on its stature as a manufacturing and economic powerhouse. However, there are many challenges that lie ahead. Now that the vision has been set, India needs to undertake the hard task of execution.
 
This reality is reflected in India being ranked 11th on the Global Manufacturing Competitiveness Index and is expected to achieve the 5th rank by 2020. The US, China and Germany are ranked at the top on overall manufacturing competitiveness.
 
In the Global CEO survey (2016), the five most important drivers identified for manufacturing competiveness were talent; innovation policy and infrastructure; cost competitiveness; energy policy; physical infrastructure; and legal and regulatory environment.
 
If we analyze the performance of various countries on these parameters, India is one of the least competitive countries when it comes to physical infrastructure as well as legal and regulatory environment with scores of just 10 and 18.8 respectively as compared to 90.8 and 88.3 of the United States and 55.7 and 24.7 of China. India has performed better on cost competitiveness, where it scores 83.5 compared to 39.3 of the US and 96.3 of China.
 
India's poor score on talent (51.5), the most important parameter for manufacturing competitiveness, is seemingly paradoxical as India has been boasting about its demographic dividend to the world while its adult population has an average of only 4.4 years of formal education.
 
There is no denying that India has a strong demographic advantage for many decades to come as its working population will reach 870 million by 2030, the largest in the world by that time. However, India needs to engage its working demographic meaningfully and skill them to make them productive. India has suffered a lot due to poor management and the frustration of its unemployed youth has sometimes culminated in protest.
 
Examples of this are the Maoist movement, Gujarat's Patel reservation protest and Haryana's Jat reservation protest. During 1991 to 2013, the Indian economy could only employ roughly 50 per cent of the job-seeking population. Despite the abundance of working population, there is a gap in the skill level due to which India is losing its competitiveness.
 
The Indian education system has been accused of not developing skills but focusing on giving degrees to people. Vocational institutes of training for in-demand skills like masonry, welding, plumbing, carpentry and operating heavy equipment receive secondary treatment. People instead get traditional degrees even if it means staying unemployed due to lack of relevant skills.
 
Indian society does not appreciate careers other than being a doctor, engineer or high ranking government official. Hence aspirations are always aligned towards these fields, leading to disproportionate competition for limited vacancies. In Germany, about 60 per cent of the population goes through 2 to 3.5 years of vocational and classroom training at an industry. As a result of this, Germany scores 97.4 for talent competitiveness.
 
India can learn from Germany's dual system of education and develop at least one industrial skill among its people.
 
India's biggest competency similar to China's is "low cost" and on the other hand the biggest shortcoming for investors is being caught in the web of government regulations. Since the new government assumed office in 2014, India has reduced the regulatory red tape and started the Make in India campaign. This brought in FDI of $9.6 billion in 2014-15 but it dropped to $8.4 billion in the next fiscal as investors aligned themselves to the ground reality in India.
 
Investors remain bullish on India but the Indian government, in its classic style, still remains elusive by taking two years to pass the Goods and Services Tax bill, with the new land acquisition bill still pending. These bills were drafted to smoothen the ground for manufacturing operations in India.
 
India scored 32.8 on innovation competitiveness compared to 98.7 of the US and 47.1 of China. India should have the foresight to predict the next technological advances in manufacturing, with developing countries bullish on technologies like advanced robotics, internet of things, augmented reality and additive manufacturing (3D printing). India needs to stay ahead of the innovation curve to remain competitive in the mid to long term.
 
A very good indicator of innovation is the R&D spend. The US and China are the largest spenders in this sphere at 2.74 percent and 2.1 per cent of their GDP (purchasing price parity - PPP - adjusted) compared to India's 0.85 per cent of GDP (PPP adjusted).
 
If we look closer home, Maharashtra, Gujarat and Tamil Nadu rank at the top in manufacturing competitiveness with scores of 67.07, 64.75 and 64.63.
 
Together, Maharashtra and Gujrat produced 34 per cent of the gross output of India's manufacturing sector in 2014-15. The exports of Maharashtra and Gujarat in 2014-15 were 46 per cent of India's exports at $72.83 billion and $59.85 billion, while Tamil Nadu exported goods worth $27.47 billion.
 
The reason for their success has been their ability to successfully tap into the potential of industrial agglomerations and an efficient transport system that has enabled them to stay cost competitive along with the benefit of having a coastline.
 
We need to draw lessons from successful manufacturing economies of the world and internally, need to look at the leading states for guidance. India has the ingredients required to become a manufacturing giant and it can reach its goal if it keeps on improving on manufacturing competitiveness.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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Now say more in your tweet than 140 characters
Although you will still type in 140 characters but from now, you can add photos, videos, GIFs and polls and these will not count against the 140-character limit.
 
"Say more about what's happening! Rolling out now: photos, videos, GIFs, polls, and 'Quote Tweets' no longer count toward your 140 characters," Twitter said in a post on Tuesday.
 
According to The Verge, the micro-blogging website is also testing out new replies that will omit usernames of the people you are replying to from the character limit. 
 
If you reply to multiple people at once, Twitter omits all of them from your tweet.
 
Earlier this year, Twitter planned to build a new feature that will allow users to tweet longer than its traditional 140-character limit.
 
The company considered a 10,000-character limit. This is the character limit the company uses for its Direct Messages product.
 
Later, the company said there is still time for you to tweet in 10,000 characters and its original 140-character limit is here to stay.
 
Appearing on a TV show, Twitter CEO Jack Dorsey said that the 140-character limit is "a beautiful constraint" and that Twitter "will never lose that feeling".
 
The 140-character limit has been around as long as Twitter has and has become part of the product's personality.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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High-profile, multi-lingual cheat arrested from Goa
A man, who used his knowledge of six foreign languages and a high-profile, to dupe people here on the pretext of exchanging foreign currency has been arrested from Goa, Delhi Police said on Monday.
 
Snigdha Saurav Dash, 28, a resident of Odisha, was arrested by Delhi Police's Crime Branch from Panaji on Sunday, police said. 
 
According to police, Dash was fluent in six foreign languages -- Russain, Spanish, Italian, Thai, Hebrew and Portuguese -- and has visited over 70 countries. 
 
He was arrested following a case filed against him by Sanjay Dutt Sharma on September 5, alleging that Dash fled away with $5,000 of his on the pretext of getting it checked. 
 
Explaining the modus operandi of the accused, Joint Commissioner of Police (Crime) Ravindra Yadav said: "Dash used to rent a premises in any of the commercial complexes in the national capital on hourly basis. And after duping his customers he would run away with the foreign currency leaving them waiting in the hourly-rented cabin."
 
Dash also holds a degree of engineering and has post graduate degree from IMT Ghaziabad.
 
Yadav also said that the accused has started duping the people after meeting D.I. Maitrey, a Russian national in a bar in central Delhi's Connaught Place area in 2015, who was also involved in duping people on the pretext of exchanging foreign currencies. 
 
"During interrogation he confessed that he, along with Maitrey, had cheated a resident of Janakpuri in 2015 of $5,000. And ealier this month he cheated Dutt of $5,000," he said.
 
"After duping Dutt, he went to Russia and spent five days with Maitrey," the officer added.
 
Police has recovered $3,000 out of $10,000 which he had duped.
 
"Dash also claimed that he was working with the BRICS as Marketing Head Associates which is yet to be confirmed," the officer said, adding: "He has earlier also worked with National Geographic Channel as System Analyst."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

SRINIVAS SHENOY

5 months ago

Dash is a well educated and appears to have held responsible positions in well known organisations, but unfortunately, instead of using his acquired skills and education justly and usefully, for the betterment of society is using his marketing skills in cheating people.

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