The Making of Champions

Context: Indian cricket team’s success has given lessons to build a successful model for India’s manufacturing sector.

Ingredients for a successful model for India’s manufacturing sector

• Enhance the role of foreign investment: it will help Indian companies to raise their standards and compete.
  • E.g. In many service sectors, like hospitality, competition by foreign companies like McDonald’s has nudged Indian companies like Haldiram’s to raise their standards and compete.
  • The government has opened most sectors, including defense, to Foreign Direct Investment (FDI).
• Provide limited protections to Indian companies: from destructive competition of foreign companies.
  • E.g.: Preference for local industry: provide protection from imports that do not allow local manufacturers to emerge.
• Increase the pace of infrastructure development: reduce large gaps between India & global standards
  • Building logistics infrastructure will help to make the prospect of manufacturing cost-competitive and enable a level playing field for every Indian entrepreneur.
• Attract best talents: India’s best talent should take the plunge for building a robust manufacturing sector in India.
  • At present, the best entrepreneurial talent of India looks for opportunities elsewhere due to the lack of perceived success and the presence of obstacles.
  • They look for opportunities either in the services or in manufacturing overseas (e.g. textiles in Bangladesh).

Conclusion: Honest implementation of policies is required for enabling India to become globally competitive in manufacturing.