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OpINION NOVEMBER 20, 2020 | The Indian Eye 39

as one of the 10 most improved neurship, and the strengthening enforcement of contracts. India At the same time, the com-
economies in terms of ease of of the industrial supply-chain in can also introduce incentives to mercial sector, especially elec-
doing business score, especially high-value manufacturing sec- encourage advanced technology tronics and electrical sectors,
due to reforms in paying taxes, tors, which will contribute to the innovations in areas such as 3D must be incentivised to attract
trading across borders, and re- development of regional clusters. printing and automotive real-time FDI from global electronic com-
solving insolvency. Other posi- One such initiative is the C-130J processes in manufacturing. ponent manufacturers, review
tive developments included im- programme that created a part- Last, but not least, the Indian existing business models, and
provement in India’s ranking in nership between the Lockheed small and medium enterprises invest in upskilling and retrain-
award of Construction Permits, Martin research programme and (SMEs) sector should be incen- ing as a move to enhance overall
from 184 in 2014 to 27 in 2019; Indian universities to work with tivised to become internationally industrial capability and capacity.
and in Getting Electricity, from local industries and mentors from competitive and export-driven. India should now turn to great-
137 in 2014 to 22 in 2019. Among the Defence Research and Devel- Both state governments and the er public-private partnership
190 economies, India now ranks opment Organisation (DRDO) central government must coor- collaborative model, where the
13 in Protecting Minority Inves- to help design specifications. dinate and introduce incentives government and industry take
tors and 25 in Getting Credit. To support industrial clusters, that will draw FDI at regional collective responsibility for pro-
India must consider prioritising levels, as has been seen in Telan- motion and growth of the Indi-
Conclusion investment into alternative re- gana and Tamil Nadu. The gov- an manufacturing sector. Finally,
India has a huge young de- newable energy sources, such as ernment needs to further reduce India should capitalise on its dias-
mographic, between 40-60 per solar and wind power. Current- red tape and overly complex ap- pora and international industrial
cent of the country’s population, ly, India is struggling to provide proval processes and promote partnership programmes, such
which requires jobs. India would cheap access to electricity and innovative and efficient business as the Access India Programme
have to commit to more poli- clean water. Cheap renewable processes that will attract more (AIP) introduced under the
cy reforms to be able to further energy can generate capabili- foreign investors. United Kingdom India Business
scale up its manufacturing ca- ty and reach remote rural areas India can emerge as the Council (UKBIC), to generate
pacity. It must continue to signifi- across the country; the surplus next global manufacturing hub. new opportunities for innovation
cantly invest in the development can be used for electric vehicles, In times of deep economic cri- and entrepreneurship.
of physical infrastructure and such as scooters and rickshaws, sis, such as the one brought on
digital connectivity—high-speed which can then be locally pro- by the COVID-19 pandemic, a Dr. Kogila Balakrishnan is Director,
train networks, new airports, duced for domestic and export swift government intervention Client and Business Development
seaports, roads, and broadband. markets. At the same time, these through strong fiscal response (East Asia) at WMG, University
It is important to offer efficient green technology related energy and injection of capital into the of Warwick; Adjunct Professor at
connectivity between industrial management initiatives will also economy is necessary. While the Malaysian National Defence Uni-
clusters and cities ensuring good address externalities such as high economy as a whole needs sig- versity; and former Under Secretary,
transport links and logistics that levels of carbon emission, pol- nificant support, the government Malaysian Ministry of Defence
support an effective and reli- lution, and poor air quality and must see this as an opportuni-
able industrial eco-system, which contribute towards sustainable ty to strategically invest in high Views expressed are of the author
meets the demand of the inter- manufacturing. technologies for priority sectors and do not necessarily reflect the
national supply chain. Additionally, there is a need such as agriculture, electronics views of the Manohar Parrikar
IDSA or of the Government of India.
India also needs to liberalise to improve and follow-through and electrical equipment, includ-
its education sector and invest India’s regulatory reforms such ing computers, telecommunica- This is the abridged version of the
in international education and as labour and land acquisition tion and space. It should inject article which appeared first in the
research partnerships. These reform, commercial law approv- aggressive economic incentives Comment section of the website
efforts should be fortified by al processes and regulations, tax and review the current business (www.idsa.in) of Manohar Parri-
a government-led public-pri- credits and grants for investors practises to bring in more trade kar Institute for Defense Studies
vate partnership investments in the emerging high-value man- and investments into advanced and Analyses, New Delhi on
in R&D, innovation, entrepre- ufacturing technology as well as manufacturing sectors. November 17, 2020

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