Is Make In India Failing? | Case study

Summary

The video script highlights critical challenges in India's manufacturing sector, including foreign investment barriers, poor infrastructure, land acquisition delays, and a lack of skilled labor. It draws comparisons with more efficient systems in countries like Vietnam and China, illustrating how India's slow rail and port operations hinder economic growth. Despite government initiatives like 'Make in India', unemployment rates remain high among graduates. The speaker proposes solutions such as improving ease of doing business, implementing land banking, enhancing infrastructure, and expanding upskilling initiatives to revitalize India's manufacturing landscape and meet ambitious job creation targets.

Takeaways

• 😀 India's manufacturing sector faces significant challenges, including delayed infrastructure projects that hinder growth.
• 🏗️ Land acquisition and environmental clearances are major bottlenecks, causing around 70% of projects to fall behind schedule.
• 🚂 The average speed of goods trains in India is only 25 km/h, significantly slower than China's 45 km/h.
• 🚚 Trucks in India travel at an average speed of 20 to 40 km/h, taking days to cover relatively short distances compared to faster speeds in China and Vietnam.
• ⚓ Indian ports, despite having a longer coastline, are less efficient, with Mumbai port's average vessel turnaround time exceeding 2 days.
• 📉 Only 2% of India's workforce holds professional skill certifications, highlighting a critical skills gap compared to countries like South Korea (96%) and Japan (80%).
• 💼 The Skill India initiative has only reached 5% of the workforce, with alarming unemployment rates among technical graduates.
• 📊 The goal of creating 100 million jobs by 2020 has not been met, with only 18.4 million jobs created in manufacturing by the latest count.
• 💡 Proposed solutions include improving the ease of doing business, implementing a land banking system, and enhancing workforce skills through expanded training programs.
• 🚀 Urgent structural reforms are necessary for India to compete globally and fulfill the 'Make in India' vision.

Q & A

What are the main challenges facing India's manufacturing sector according to the video?

The main challenges include delays in land acquisition, poor infrastructure, inadequate labor skills, and high unemployment rates.

How does India's manufacturing investment compare to Vietnam's, specifically regarding Samsung?

Samsung invested $22 billion in Vietnam, while India struggles with investment due to various systemic issues that lead to significant delays.

What percentage of India's infrastructure projects are delayed, and by how much on average?

Approximately 70% of India's infrastructure projects are delayed, with an average delay of over 41 months.

How does the speed of goods trains in India compare to those in China?

The average speed of goods trains in India is 25 km/h, whereas in China it is 45 km/h, highlighting significant inefficiencies.

What are the average travel speeds for trucks in India, and how does this compare to Vietnam and China?

In India, trucks travel at an average speed of 20-40 km/h, while in Vietnam, it is 40-60 km/h, and in China, it is around 60 km/h.

What is the turnaround time for vessels at the Mumbai port compared to the Saigon port in Vietnam?

The average turnaround time for vessels at the Mumbai port is over 2 days, whereas at the Saigon port, it is around 0.9 days.

What percentage of India's workforce holds a professional skill certification?

Only 2% of India's workforce holds a professional skill certification, which is significantly lower than other countries.

What is the unemployment rate among Indian graduates, as highlighted in the video?

The video mentions that 35% of BTech graduates, 77% of Polytechnic graduates, and 60% of ITI graduates are unemployed.

What are some proposed solutions to improve India's manufacturing sector?

Proposed solutions include enhancing foreign investment laws, implementing a land banking system, improving infrastructure, and scaling up labor skilling initiatives.

What is the goal set by the Indian government for job creation in manufacturing by 2025, and how likely is it to be achieved?

The government aimed to create 100 million jobs by 2025, but the speaker expresses doubt about meeting this target based on current progress.