MAKE IN INDIA

As world economies restart their engines in a bid to regain lost ground due to the Covid-19 pandemic, India too shows signs of economic buoyancy and promise. India’s Make in India initiative holds a key to the global economic revival, something that should interest Australian government ministries, corporate sector, entrepreneurs, institutions seeking R&D collaborations and Australia Inc in general, among others. India assumes greater importance as several major world economies including American, Japanese, German, British and South Korean look to move out and diversify their businesses from China. India has jumped to 63rd rank in the World Bank’s Ease of Development 2020 report, and has also been ranked as the 9th largest recipient of Foreign Direct Investment destinations in 2019 by the World Investment Report 2020 of the United Nations Conference on Trade and Development (UNCTAD).

Building India to build in India

New Delhi, May 26 (IANS) It is sometimes said that if you want to be great, seek out others' problems. Another rendition you might have heard is 'someone else's problem is your opportunity.'

Before Covid-19 blew in to dominate our lives, a large part of the world, particularly the West, was (and to an extent still is) dependent on China for manufacturing. With extreme disruptions to global supply chains, heavy reliance on one country for basic medical equipment, pharmaceuticals, and raw material was aggressively questioned, subsequently leading to many countries and industries strategizing to relocate their manufacturing hubs away from China or at least diversify them to distance themselves from geopolitical risks.

Compared with most of the world, the Indian economy showed 'exemplary resilience' in recovering from the pandemic. However, the associated blowback brought along with it several revelations, such as the need to become self-sufficient for long-term economic growth. As a result, structural reforms were quickly introduced to turn the crisis into an opportunity and grease the wheels of the Indian manufacturing sector.

Today, with the introduction of structural reforms, India is being considered a strong alternative to China and an attractive destination for manufacturing by various industries and countries.

Over the past three years, Prime Minister Narendra Modi has reiterated on his vision of an Aatmanirbhar Bharat (self-reliant India) with numerous initiatives launched to boost manufacturing; for instance, the visionary Make in India programme aims to transform India into a global hub for manufacturing, research and innovation, and an integral part of the global supply chain. The initiative focuses on 25 sectors such as automobile, aviation, textiles and garments, pharma, and renewable energy. Industrial corridors are also being built across various regions. The most notable aspect is that sectors such as defence and railways have been opened to significantly higher levels of foreign direct investment. Regulatory policies have also been relaxed to facilitate investment and ease of doing business. While growth has primarily been driven by the services sector, the manufacturing sector has untapped potential, which if leveraged effectively, can propel growth even further. Productionlinked Incentive (PLI) Schemes have also been announced for 13 sectors (e.g., food products and technology products) to offer companies incentives on incremental sales from products manufactured in India, over the base year. Specifically designed to boost domestic manufacturing in sunrise and strategic sectors, the aim is to reduce cheaper imports and import bills, improve cost competitiveness of domestically manufactured goods, and increase domestic capacity and exports. For instance, the PLI for large-scale electronics manufacturing is expected to result in a robust manufacturing ecosystem for electronic components, further leading to enhanced product manufacturing of LED products and IT hardware among others.

With many sectors undergoing major reforms, defence indigenization has also been made a priority. To create a 'global supply chain free from vulnerabilities and uncertainties,' the defence minister has invited US defence manufacturers to set up units in India and collaborate with the Indian sector.

In a one-of-its- kind deal, Airbus Defence and Space and Tata Advanced Systems entered a joint venture to manufacture C-295 medium-lift military transport aircraft, further supporting the government's vision of an Atmanirbhar Bharat. Safran, the world's second-largest aircraft equipment manufacturer, is also establishing its biggest MRO facility in India to service aeroengines.

While the country is yet to address persisting issues such as inadequate infrastructure development, complex regulatory frameworks, and a shortage of skilled workers, it cannot be said that steps are not being taken in this direction. For example, industrial corridors and smart cities are being developed to provide infrastructure based on state-of-the-art technology with modern high- speed communication and integrated logistics arrangements.

This year's budget also reported a 33 per cent increase in expenditure on infrastructure investment, with 100 critical transport infrastructure projects identified to improve logistics for the ports, coal, steel, fertilizer, and food grain sectors. To promote robust infrastructure development, the government announced the National Infrastructure Pipeline (2019), which will use private funds in addition to the public budget. The country is also receiving support from partners such as Japan, its largest partner in terms of financial cooperation for infrastructure development. To ease regulatory burden, thousands of compliances have been reduced and legal provisions decriminalized. The use of digital technology has proved to be a game changer, introduction of the Goods and Services Tax has enhanced the movement of products across India, and amendments to labour laws are attracting foreign players with ambitious plans to scale presence in India.

India's gradual adoption of Industry 4.0 practices through initiatives such the National Manufacturing Policy (which aims to increase the share of manufacturing in the GDP to 25 per cent by 2025), shift to more automated and technology-driven processes at par with global standards, a strong domestic market and demographic advantage will surely accelerate growth, allowing the country to revitalize its manufacturing sector.

Why it makes sense for Tatas to make high-end iPhones as Apple eyes India

By Nishant Arora

New Delhi, May 22 (IANS)

With Tata Electronics now hogging the limelight for iPhone manufacturing in India, industry experts on Monday said that with their ambition on semiconductors and EVs, it only makes sense for the Tata Group to gain expertise in manufacturing high-end iPhones in the country.

Currently, iPhone 12 and iPhone SE (second generation) are being manufactured/ assembled at Taiwan-based iPhone manufacturer Wistron's Karnataka factory, which Tata Electronics is set to take over soon.

Once the final takeover is done, the facility is likely to manufacture new Apple products that may include the upcoming iPhone series.

"With the new make-in-India potentially entry to mid-level iPhone 15 series, the Tata Group will make a modest beginning in this new partnership," according to Prabhu Ram, Head, Industry Intelligence Group, CMR.

"We anticipate a remarkable growth trajectory for the Tata Group in the coming years as they gain expertise and experience in high-end iPhone manufacturing," he told IANS.

In the years ahead, the Tata Group has the potential to solidify their position as a pivotal player in the iPhone manufacturing ecosystem.

Wistron's factory in Karnataka, that employs about 12,000 people, constitutes a major chunk of its business in the country.

According to reports, Wistron will be winding down its operations soon and is "likely to approach the National Company Law Tribunal and the Registrar of Companies to dissolve its India operations". Meanwhile, the manufacturing/ assembly of iPhone 13 and 14 in the country will continue at Foxconn's Sriperumbudur facility on the outskirts of Chennai, according to sources.

As the iPhone consumption increases in the country, Apple needs more suppliers to ramp up production here, as it reportedly aims to take away a significant chunk of manufacturing from China to countries like India and Vietnam.

Make in India' shipments from Apple grew 65 per cent (on-year) by volume and 162 per cent by value, taking the brand's value share to 25 per cent in 2022, up from 12 per cent in 2021, according to Counterpoint Research.

Sachin Tendulkar makes strategic investment in AZAD Engineering

Hyderabad, May 15 (IANS)

AZAD Engineering, a leading provider of engineering and technology solutions, on Monday announced that cricket legend Sachin Tendulkar has made an undisclosed strategic investment in the company.

Hyderabad-based AZAD Engineering is an engineering and technology solutions provider for global OEMs in the Clean Energy, Aerospace, Defence, Oil & Gas and SPS Industries. This strategic investment from Sachin Tendulkar allows AZAD Engineering to further strengthen its commitment to contribute to Make in India and Atmanirbhar Bharat initiatives of the Government of India, said the company.

Rakesh Chopdar, Founder & Managing Director of AZAD Engineering, stated that they are honoured to have Sachin Tendulkar as an investor. "As a company committed to promoting highly complex manufacturing and self-reliance, AZAD will focus our vision and create more growth & innovation opportunities for India," he said Over the past decade, AZAD Engineering has experienced remarkable growth with stateof-the-art facilities, process engineering mastery, unparalleled supply chain efficiency, and infrastructure that surpasses industry standards to meet the demands of its OEM clients.