India needs own model of manufacturing

Singapore

INDIA needs a new model for its manufacturing sector - one that is different from China's and, in particular, creates employment for Indians, said panellists at the Emerging India Forum 2015 on Friday.

MJ Akbar, spokesperson for India's ruling Bharatiya Janata Party (BJP), said China's model, "in which you go to Africa and carry your working class with you", will not work in India because jobs need to be created in India in order to eliminate poverty in the country.

Mr Akbar added that there is "no better job creator" than the infrastructure sector, and Singapore can play a part in job creation in India.

The panel discussion, moderated by Girija Pande, executive chairman of Apex Avalon Consulting, was conducted against the backdrop of Indian government's new "Make in India" programme to transform the country into a global manufacturing hub.

Another panellist, Leo Puri, managing director of UTI Asset Management Company, agreed that India needs its own model, taking into account the world of technology-led manufacturing today.

"The China model in which you simply become a part of the export global supply chain - that time has probably passed," Mr Puri said. He added that while India's new emphasis on manufacturing is long overdue, its timing is unfortunately "not ideal".

Mr Puri warned against delving too deeply into automated, "jobless" manufacturing, which he said is a "scary thought" and will defeat the purpose of "Make in India".

However, BT associate editor Vikram Khanna pointed out that Singapore companies may have limited manufacturing opportunities in India as Singapore moves away from low-wage manufacturing towards advanced manufacturing, such as in robotics and 3D printing.

Instead, businesses here can look to India's other industries - especially the infrastructure sector - where "tremendous opportunities" abound, he said. One such area is urbanisation, which will be a "huge story" in India for at least the next 25 years; Singapore can bring to the table its urban management expertise, he said.

Singapore can also contribute to India in terms of the republic's established real estate investment trust (REIT) market, said Amit Sinha, managing director of DBS Singapore.

Organised by Times Now, an English news channel in India, the forum featured industry leaders discussing India's economy after the first full-year Budget of Prime Minister Narendra Modi's government was presented last month.

Speakers and panellists included Vijay Thakur Singh, Indian High Commissioner to Singapore; Swaminathan Aiyar, economist and consulting editor at The Economic Times; and PK Ghose, executive director and chief financial officer of Tata Chemicals.

The event was sponsored by UTI International and supported by the Confederation of Indian Industry and the Singapore Business Federation.