1

MAN MADE IN INDIA

A research paper presented at a National conference held on Make in

India an HR perspective at Amity University.
Authored by

A.DHIRAJ
PHD SCHOLAR
AMITY UNIVERSITY, INDIA.
wldhiru@gmail.com
8606686166
Under the guidance of

Prof. (Dr.) ASHOK KUMAR

Head H.R. and O.B.
Amity University, Uttar Pradesh,
India
26th February 2016.

INTRODUCTION
Industry has a major role in national economy. All the governments of post-independence India
have accorded a priority to industry. Manufacturing sector is an inevitable part of nation building.
It is often forgotten that India was a leading industrial power well upto the early 19 th century. This
power was based on a decentralized network of industries all over the country, which utilized
advanced techniques demanding skills of high order. Centuries after India is again leaping ahead to
the reach the pinnacle of glory and reposition itself as a Guru to the whole world. Make in India
is such an initiative of Government of India that plans to bring back the glory of Indian industries
that excelled in quality and service centuries back. This program was launched on September 25,
2014, to encourage multinational and domestic companies to manufacture their products in India.
Indian economy promises enormous long-term advantages:
i.

ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.

Abundance of natural resources (80 bn tons of mineral reserves1, 5000 TWh of solar insolation2 etc.)
Youngest working age population in the world.
Third largest economic power in terms of purchase power parity.
Easy access to varied raw materials.
Expanding Middle class
Stable democracy
Global Educated and most talented workforce.
Technology driven society
Good connectivity across the globe
3rd largest consumer market in the world.3
xi.

Indias exchange rate shapes the price competitiveness of exports in the world market. It
also influences the relative profitability of export for the domestic firms. Multi-national
companies who are making India a manufacturing base and use them to meet global
requirements. At the macro level, exports also imparts efficiency, drives demand and
competitiveness in domestic production by maintaining a cost discipline on the supply side.

xii.

Make in India initiative is focusing on 25 sectors of the economy for job creation and
skill enhancement. The sectors covered are:
2. Automobile

1. Automobiles
6. Pharmaceuticals
11. Tourism

and

hospitality
16. Defence
Manufacturing
21. Media
Entertainment

xiii.

components
7. Textiles and

3. Chemicals
8. Ports

Garments

Shipping

12. Space

13. Railways

17. Electrical

18. Electronic

Machinery
and

and

22. Renewable

5. Oil and Gas

9. Aviation

10. Leather

14. Biotechnology

15. Construction
20. Food

19. Mining

systems
23. Roads and

Energy

4. IT and BPM

Highways

processing

24. Thermal Power

25. Wellness

Among the 25 sectors, except for News media sector (26 percent), Defence sector
(49percent) and Space (74 percent), Government has allowed 100 percent Foreign
Direct Investment in all other sectors4.

xiv.
xv.

Why INDIA

Indias strong performance and growth has attracted several multinationals to invest in

India. Most of these companies have leveraged Indias strengths to both establish their
operations in the domestic market, and also develop India as a sourcing base for their global
operations. The recent survey conducted by Brand Finance in Nation Brands 2015, India has
shown unprecedented growth of 32% and occupied the position of
7th most valuable national brand in the world 5. According to the
Department of Industrial Policy and Promotion (DIPP), FDI in India has soared up to US $
44.9 billion from US $ 36 billion last year. Investment through the Foreign Investment
Promotion Board (FIPB) has also seen a growth of 26 % during FY 20156.
xvi.
According to the India attractiveness
survey conducted by EY in 2015, a
leading 32% of the investors ranked
India as the most attractive market this
year, while 60% placed the country
among

the

top

three

investment

destinations7.
xvii.
As per the United Nations
world GDP growth data, developed countries are growing by 2.2 percent and developing
countries are growing by 4.9 percent8. India, now leads the world developing countries by

clocking a growth rate of 7.3 percent as of December, 2015.

India has showcased dominance among the BRICS team
also.
xviii.

Within six months of its announcement, 55% of

the 234 respondents from manufacture related sectors with

overseas
expansion
were aware of the Make in India program and
69% of those who are aware of the initiative are
likely to invest in manufacturing in the next five
years7.
xix.

The factors which made them take these decisions were Cheap Labour cost,

Big Domestic market, Macroeconomic stability, Skilled labours, Stable political and social
environment, Research and Development. The 505 respondents which took part in the survey
has shared their views on the policy reforms bought by the Government of India recently and
their attractiveness towards investing in
India.
xx.

India

has

got

strong

capabilities in manufacturing. At
present it is gaining in prominence.
It is widely believed that the next
wave of growth in India will be powered by
the manufacturing sector. The Government
has set an ambitious target of increasing the
contribution of manufacturing output to 25
% of Gross Domestic Product by 2025,
from 16 percent currently.
xxi.

Manufacturing has regained its share in 2014 in terms of FDI capital flows. As

on May 2015, Manufacturing amounts to around 46% of total FDI inflow. A survey taken
from Investors with overseas expansion plans showed that 62% of respondents are interested
to expand or enter India over the next year, saying that they plan manufacturing activities 7.
Indian automotive industry contributes for about 20 per cent of the manufacturing sector.
India is poised to become the 3rd largest automotive market in the world by end of 2016, ahead

of Japan and Germany, riding on its domestic

automotive sales, according to IHS Automotive, a
global market information provider. In terms of
production volume India is predicted to reach the
fourth spot in global rankings by 20209.
xxii. India is well prepared to accommodate
global companies by setting up the right platform in
the area of skill development. Pradhan Mantri
Kaushal Vikas Yojana is a scheme implemented by National Skill Development Corporation
(NSDC) 10. The NSDC Board has given approval to 156 skilling proposals and 39 Sector Skill
Councils with an estimated budget of Rs. 2,362 crore. As of September 2014, the NSDC
Training Partners, SSCs and affiliated training agencies have trained 33,74,817 students and
placed 12,25,428 students. Across 356 districts in India there are 89 training partners who are
operating 1408 training centers and running about 875 courses11.
xxiii.

Action points for the Government to improve Make in India program

Enhance employee intensive industries
Encourage home manufacturing
Streamline industry-academy interface
Implement ancillary programs
Rejuvenate Apprentice Scheme

o
o
o
o
o
xxiv.

Employee intensive industries

xxv.

Assocham study in 2010 on Sectorial analysis of direct and indirect

employment potential, says that the food processing and beverage sector creates about
102 new jobs on investment of Rs.10 lakhs. Textile, wood, paper and leather segments
generate about 60 new jobs on similar investment 12. If government is ready to
incentivize industries on basis of job creation then it will add more value in the efforts
to reduce unemployment using this Make in India program.
xxvi.

Encourage home manufacturing

xxvii.

All new industries should be instructed to decentralize their operations to home level
to reduce cost and serve the need of generating more employment. The advancements
in IT, precision micro tools, distributed transport, the idea could be implemented
without any difficulties. Coimbatore district in Tamilnadu is an example where

households in many villages have a mechanical lathe and they produce small machine
parts for auto giants like TVS.
xxviii.
xxix.

Streamline Industry- Academic interface

There has to be an active interface to have relevant syllabus and proper orientation
towards industry. Education system need to be reoriented towards entrepreneurial bend
of mind. Make in India should reform the industrial relations so that every company
should have a tie up with any one professional institute within 5km of its area of
operation. In 2015 alone 400 ITIs in Maharashtra have been adopted by industries and
the results are encouraging13.

xxx.

Implement Ancillary programs

xxxi.

Big industries should assist expatriates with technical experience to start a unit to feed
the big unit. The global crisis in 2016 will end up so many Indians to return from GCC
countries. If government think of a proper rehabilitation plan at this verge, then Make
in India program will be a boon to those skilled labour with vast expertise.

xxxii.

Rejuvenate apprentice scheme

xxxiii.

Industry needs highly skilled people, especially in emerging skill areas. The
apprentices are trained in these skills and they infuse the mainstream economy with it.
All the industries should take apprentice freely so that the gap between unemployed
and industry requirements become negligible. On 28th January, 2016, Ministry of Skill
Development and Entrepreneurship signed a MOU with a skill development agency to
provide 1 lakh trade apprentices for youth in over next 3 years14.

xxxiv.
xxxv.

xxxvi.
xxxvii.

MAN MADE IN INDIA

Indias Men Abroad

xxxviii.

Until the early part of eighteenth century Indias industrial products

were well known round the globe for their quality, low cost and craftsmanship. Traders
from various parts of the world visited India and exchanged their gold, silver and
precious stones for obtaining Indian goods. The British conquest of India destroyed the

industries of India and within a time span of 72 years (1757-1829) India was reduced
from the position of manufacturing country to that of a supplier of raw materials.
Colonization also influenced Indian labour market. During the early 19 th century
Indenture was introduced in world labour map and many countries like India, China,
Africa and South East Asian countries started importing labour to other British, French
and Dutch colonies which were emerging as major industrial hubs.
xxxix.

In 1820, Indenture began in Mauritius as a Great Experiment

and gradually spread over to other countries also. Still today we are following a
revised version of indenture where by a labour is entering into a contract with his
employer at another location for rendering his service in return of compensation, food,
accommodation and traveling cost for a limited period of time as mentioned in the
contract agreement. According the report of the Royal Commission of Enquiry, which
was presented in British Parliament in 1875, Indian workers were perceived as being
quiet, docile and industrious by colonist. Indian labour force developed a reputation
for preparedness to work in any unfavorable conditions across all climate in different
colonies across the globe. The Chinese, Malagasy and Comorian labours were brought
along with Indian labour but their numbers declined gradually during 1840s. In the
book, Forging the rainbow, Carter M., acknowledges that by 1850, Indians formed
95 percent of total number of indentured labourers brought in Mauritius15.
xl.

During the 20th century Indian labour reached every nook and corner of the
world. From 0.2 million in 1970, Indian expatriate population in Gulf Cooperation
Council (GCC) countries rose to 7.47 million by 2012. Indians form 50 % of the
immigrant population in UAE. The reputation of Indian work force in GCC countries
has given the government an upper advantage in creating better bilateral relation
between these countries16. According to the mid-2013 estimates by the United Nations
Population Division, the second most common destination of Indian work force is US,
with 2.06 million migrants17. American community survey data shows that 73 percent
of Indians were employed in Management, business, science and arts occupation
compared to only 30 percent of total other country migrants in Civilian labour force of
US. About 44.8 percent of IT professionals, 25.2 percent of medical professionals, and
16.8 percent of engineering professionals in US are Indians 18. Indias technically
skilled workforce is leading the race by occupying top positions in Multinational
giants like Microsoft and Google. The role of Indians in developing the Space research
centre, NASA is also inevitable. According to Malaysian department of immigration,

in 2014, Indians stood in the first position with 20.1 percent contribution towards the
high skilled expatriates in Malaysia. Indian workers are perceived as more
professional than those from other South Asian countries19. Moreover India is
considered as good recruiting ground for skilled labours.
xli.

Indian workforce

xlii.

India ranks second, after China,

with respect to the total number
of

students

university

who

every

graduate

year

(5.34

million in FY2014) and has the

worlds largest employable graduate population20. Around 25 percent of the workforce
consists of domain experts such as doctors, lawyers, statisticians, chartered
accountants, and mathematicians. In addition, absolute wage levels in India are low,
which is a large cost advantage for foreign firms that want to locate production outside
their country of origin. According to the U.S. Bureau of Labor Statistics, India has
one of the cheapest average labour compensation in organised manufacturing sector
with an hourly payment of $1.46. The average compensation in China is $ 3.
xliii.

The total number of labour force in 2016 is forecasted to be 524.464

million. India has one of the largest English speaking workforce in the world. India
ranks above Japan and China in the availability of skilled labour. As per the Global
competitiveness ranking of IMD in 2015 Indias workforce productivity is far better
than Brazil, Russia and Australia. The survey has also examined about the emphasis of
science in schools and this contributes towards the technological advancement of the
nation. India stood 16th in the world for teaching science. India has one of the lowest
labour cost per hour compared to other developed and developing countries in the
world20.
xliv.
xlv.

Action points for businesses to leverage their presence in India

o Understand Indias work culture and encourage new initiatives in HR

o Innovate in employee engagement
xlvi.

Understand Indias work culture and encourage new initiatives in HR

xlvii.

The aim of its economics would be not to create a huge engine of production,
whether of the competitive or the cooperative kind, but to give to men, not only to
some but to all men, each in his highest possible measure, the joy of work according to
their own nature and free leisure to grow inwardly, as well as simple, rich and
beautiful life for all.- Sri Aurobindo12.

xlviii.

Indias work culture is of Poornatva- industriousness being a way of life, continuous

innovation and perfection in work. Productive employment is ultimately the primary
guarantee of satisfying human needs and aspirations. India promotes the concept of
industrial family, balancing and furthering interests of all stakeholders. Make in
India should create an environment imparting education to all industrialist to work
together with all their business partners like employees, suppliers, mangers, consumers
and the localities in the outlying area where the unit is situated. The culture to be
enhanced is of treating national interests as paramount over any sectional interests.
The industrial family concept gives the industrialist the role of a parent who takes care
of his employees as own children. Keeping this idea in mind the HR policies of the
company need to be framed. A few initiatives recommended in this context are as
follows:

xlix.

Long term disability protection:

If any employee becomes disabled and is below

the age of 59 years then he may be entitled to long term disability benefits. The
company should accommodate the employee in any handicapping condition and allow
to remain as a productive member of the workforce.
l.

Leave Donation Program:

Employees can donate their leaves to their co-workers

during periods of extended illness. It will be on a voluntary basis and no claims for
exchange need to be entertained. This will create more bonding and commitment
among employees and the industrial family concept will be harmonized.
li.

Family Sick leave:

Sick leave should be made hourly basis. An employee need to

be allotted 120 hours of sick leave in a year. Employees can avail 60 hours out of the
total sick leave to care for sick family members.
lii.

Annual leave: Employee can earn 18 earned leave in the first three years of service.
The earn leaves will increase by one with every year of his service in the company till
it reaches 30 leaves per year.

liii.

Social responsibility credits: The employee can accumulate credit points for each
hour of social service he is engaged with as part of the corporate social responsibility
activity of the company. The credit points can be redeemed as meal/grocery vouchers
which will be distributed once in two months to the employees.

liv.

Innovate in employee engagement

lv.

Organizing Celebrations:

A randomly selected team calendar need to be set at the

beginning of every financial year which will assign every team a month. The team
comprises of all the employees in the industry from top to bottom. They will organise
a celebration in the month related to national importance. All the members of the team
will have to take some responsibility and the whole program will be done without any
intervention from other employees.
lvi.

Family talent fest:

Once in a year the industry can organise a family talent fest

which give opportunities for all members of the family to come together and showcase
their talents. This will add value to the feeling of oneness and the industrial family
culture could be further imbibed into the minds of employees.
lvii.

Social Status Scheme: Every month top performer of the company will get a chance to
do some social service activity in his preferred area under the sponsorship of the
company. This way of rewarding will give a good social status for the employee in his
home town as well as he will engage in social activities more to find out the real need
of his area. The companies CSR fund will also get a good utilization through this
scheme.

lviii.
lix.

Conclusion
Indias strong performance and growth has attracted several multinationals to
invest in India. Most of these companies have leveraged Indias strengths to both
establish their operations in the domestic market, and also develop India as a sourcing
base for their global operations. India has put forward a unique Trisutri in front of
world regarding industrialization, Nationalised Labour, Labourised Industries
and Industrialised Nation12.This will become the driving force which will manifest

the potential in Indian manufacturing industry rebuilding Bharat as a Benign friendly

World Power.
lx.

References:

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October

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from

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(2015,

October

14).

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