India industrial outlook

India Industrial Overview

Indian economy started out as a producer of raw goods, since it was model used by the British to get maximum gains out of the Indian economy. The climb up the value chain is a painful one for all lagging economies of the world as it requires an educated populace.

Early Indian industry essentially consisted of raw and simple goods lower down in the value chain. As the populace became more literate, more complex goods showed up in the value chain. India eventually started created complex parts and become independent in the arena of two and three wheeler automobiles. That expertise has now extended to four wheelers.

Economic liberalization in the 80s and 90s allowed for more sophisticated goods to be produced. The Indian labor force has always been prized as a productive one and was the primary export for a long time. Software outsourcing and business process outsourcing has finally allowed Indian jobs move up the value chain and provide the needed expertise to most of the developed countries.

Indian industries now work at a very high quality level to produce goods for both local and international consumption. Automotive industry, food processing industry, film industry, medical and garment industry are some of the success stories. Corruption is the major impediment as it does not allow talent and skill to rise to the top, creating mediocrity in some the fields where India could have been the top producer. There is also a tendency to treat industrialists with disdain. Industrialists are working hard to avoid corrupt practices and provide maximum value; the begging bowl of politicians and bureaucrats continue to be a major impediment. Lack of well built infrastructure is also becoming a major concern. The current government is well on its way to removing hurdles faced by the common Indian businessman.

Software has become a major spoke of the Indian economy in the past few years. Indian skills and knowhow has translated itself to millions of good paying jobs being outsourced from the developed world to India. India also provides enormous amount of on-shore talent to all the countries in the world.

Manufacturing is now receiving a conscious boost via the Make in India campaign. Also the current administration is loosening up the bureaucratic environment to allow innovators and manufacturers to go to market quickly and face fewer hurdles in setting up and running a business. Focus on infrastructure development will also aid the industrial economy in the long run.

Medical tourism, biotechnology and surrogate child technology are some of the noble fields in which India will continue to have major contributions in the coming years. A reasonable ethical framework needs to be put in place to make sure that international customers and users can redress their grievances in a fair manner.

Help for entrepreneurs and local industries

Every district has a District Industries Centre (DIC), run by the state's industries department. It is the first place to go to register a unit, to apply for the state's incentives and subsidies, and for help with central schemes such as PMEGP.

From the Government of India

Udyam Registration: free online registration for micro, small and medium enterprises, with an Aadhaar number; the Udyam certificate is needed for most MSME schemes and for priority-sector bank loans
Prime Minister's Employment Generation Programme (PMEGP): loans to start a new micro enterprise, with a government subsidy of 15 to 35 per cent of the project cost (higher in rural areas and for women, SC/ST and other special categories); apply through the District Industries Centre or the Khadi and Village Industries Commission
Pradhan Mantri MUDRA Yojana: loans without collateral from banks, small finance banks and microfinance institutions: Shishu up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who have repaid a Tarun loan
Stand-Up India: bank loans of Rs 10 lakh to Rs 1 crore to set up a new enterprise, for women and for Scheduled Caste and Scheduled Tribe entrepreneurs
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): guarantees bank loans to micro and small enterprises, so they can borrow without collateral or a third-party guarantee
Startup India: recognition by the Department for Promotion of Industry and Internal Trade, which brings tax and patent benefits, the Startup India Seed Fund and mentoring
PM Vishwakarma: for artisans and craftspeople in 18 traditional trades: recognition, skill training with a stipend, a toolkit grant and low-interest loans without collateral
PM Formalisation of Micro Food Processing Enterprises (PMFME): for small food-processing units: a 35 per cent credit-linked subsidy (up to Rs 10 lakh a unit), seed capital for self-help groups, and help with branding and marketing
Government e-Marketplace (GeM): sell goods and services online to government departments and public sector companies
MSME Samadhaan: file a case when a buyer has not paid a micro or small enterprise within 45 days
MSME Champions: the Ministry of MSME's help desk for complaints and problems with finance, approvals and markets
MSME Development and Facilitation Offices: the Ministry of MSME's offices in every state: advice, training, testing and the ministry's schemes
Small Industries Development Bank of India (SIDBI): the bank for small industries: loans, and refinance through other lenders
National Single Window System: one place to apply for central approvals and licences, and for many states' approvals
One District One Product: promotes a chosen product of each district, with help to find buyers and export
NIESBUD: the national institute for entrepreneurship training, under the Ministry of Skill Development and Entrepreneurship
myScheme: search central and state government schemes by state, occupation and other details

Schemes, limits and subsidies change with each budget: check the official site before applying.