The labor force of the 15 to 59 -year -old group accounts for 80%of the total population, and the median population is only 28.2 years old.It is 60%of the population. It is certain that India is one of the world's most "young" countries.
Since the beginning of this year, German, China, Japan, and South Korea ’s manufacturing procurement manager index (PMI) of manufacturing and strong powers.By the end of August, the country's manufacturing PMI has exceeded 50%for 26 consecutive months, and the PMI in August has risen to the secondary level of nearly three years.This unique scene shows that "Made in India" seems to be overtaking in a corner.
When referring to "Made in India", the first thing that reminds of people is India's generic drugs.As the strongest economy in the pharmaceutical industry in developing countries, India's drug output ranks third in the world, with vaccine output accounting for 60%of the world, and the supply of generic drugs accounts for 20%of the world.In addition to imitation pharmaceutical manufacturing, there are also textiles and automobile manufacturing as the Indian pillar industry.India is currently the second largest textile producer in China in the world, with a total of over 306 billion US dollars (about S $ 50 billion) Indian textiles and clothing trade, accounting for 4.6%of the global market.In terms of automobile manufacturing, the Indian automotive industry contributed 7.1%of GDP (GDP) and 49%of the manufacturing industry. Among them, Tata Motor Corporation is India's largest comprehensive car company and the largest commercial vehicle manufacturer.The income is 38 billion US dollars, and it is the world's second largest passenger car manufacturer.
Comprehensively judge that India does have a place in the global manufacturing industry, especially in the unparalleled technology, resources and market competition advantages of generic drug manufacturing.Nevertheless, India is not a big manufacturer, but also not a manufacturing power.On the one hand, India embeds the global manufacturing division of labor, especially the key parts of the key parts of the industrial chain are very limited and the depth is not enough. At the same time, the weakness of overseas production and processing capabilities has limited its global expansion and the pace of effective circle layers for users.On the other hand, the Indian manufacturing industry has not formed a complete industrial system. Many industries have to rely on the supply of product supply of foreign industrial chains. At most, India can only be a terminal assembly base.Dilute a lot.Furthermore, India lacks influential international famous brands. A total of only seven companies have entered the top 500 in the world. Among them, there are only Tata Group in manufacturing companies. Even well -known global generic drugs, it is difficult to escape the prejudice of lifelong OEM.Agree with the above shortcomings, data released by the World Bank show that the current proportion of Indian manufacturing in global manufacturing is only 3%.
According to the "Indian Manufacturing 1.0" plan proposed by the Indian government and the "Indian Manufacturing 2.0" plan, the domestic manufacturing contribution to GDP in 2025 must be provided to 25%.To this end, the Indian government has formulated a national industrial support policy called the "production -related incentive plan" (PLI). It was originally aimed at the three industries: pharmaceutical and medical device manufacturing, mobile product manufacturing and electronic components. Later, Semiconductor and other departments, each department has obtained very clear financial support.If it provides US $ 2.5 billion in capital assistance for advanced chemical battery production projects, provides a subsidy incentive for $ 2.7 billion for companies that produce energy storage batteries, arrange $ 10 billion in funding support for wafer factories, and give IT hardware manufacturing companies $ 4 billion in US $ 4 billionFund incentives, etc.These funds are not only to domestic companies, but also to invest in India's companies in other countries. At the same time, assistance funds can only be arranged in stages. It is not ruled out that the follow -up will be further increased according to the situation.
In addition to the incentives and support of real gold and silver, the Indian government also provides manufacturers at home and abroad to provide facilities in the aspects of resource elements such as factories, land, etc. At the same timeCommercial and harmonious standards and provide full reimbursement services for air tickets for overseas business activities, while existing existing exporters can enjoy equivalent welfare support with a upper limit of 20%.In addition, in order to attract foreign manufacturing management and technical talents, the Indian government is preparing to increase the personal income tax exemption and reduce the tax rate, and at the same time, the tax collection exemption rules are changed.More importantly, while the olive branches are thrown intensively, the Indian government has also picked up a big stick for foreign products importers.
According to the Indian Express report, in the past five years, India has increased tariffs on more than 500 imported goods categories, involving more than 4,000 commodities, the most noticeable of which is the import tax of electronic appliances such as video and photography equipmentFrom 10%to 15%, the import tax of television and microwave ovens has been increased from 10%to 20%, and the tax rate of imported mobile phones has been increased from 10%to 20%.In addition, the import tax rates of imported products such as air conditioners, refrigerators, washing machines, shoe, and plastic products and suitcases have increased by more than 10 percentage points, and there is no possibility of raising.What is even more significant is that three years after launching the ban on smart TV imports, this year India incorporated personal computers and laptops into the scope of import restrictions.
Clarify the direction of manufacturing upgrade
The development of the Indian government's development and expansion of the manufacturing industry is not only satisfied with the level of the industry, but also clarifies the direction of intelligent and service -oriented manufacturing.In terms of intelligent manufacturing, the Indian government is vigorously promoting the "Digital India" plan to prepare for the 2023/2024 investment of US $ 122 billion to create an artificial intelligence center and build 100 digital change projects in the next five years to greatly improve the intelligent enterprise production line's intelligenceLevel.In terms of service manufacturing, the Indian government is promoting enterprises to carry out new business models such as remote services and customized services to promote the transformation of manufacturing into a higher value -added field.To this end, the Indian government plans to invest US $ 130 billion to establish a large -scale multi -mode interconnection national overall planning project to help manufacturing companies improve service efficiency.
In addition to creating a comprehensive amount of policy in boosting the manufacturing industry, India has undoubtedly the advantage of strengthening the manufacturing industry.As the world's largest population country, the total population currently has a total of 1.425 billion. The International Monetary Fund (IMF) speculates that the total population of India in 2027 will be close to 1.7 billion.The total proportion of the total population is as high as 80%, the median population is only 28.2 years old, and the population under the age of 25 accounted for half of the total population. The population under the age of 35 accounts for about 60%of the total population. It is certain that India is the world's most "young".One of the countries.Based on the structural characteristics of the above population, the Organization of Economic Cooperation and Development believes that the Indian -working age population can reach 1 billion in the next 10 years.
The abundant and elastic population resources not only create more room for labor selection for the manufacturing industry, but also occupy a more active position in the wage and price game, which is conducive to the effective reduction of production and operation costs and enhancing market competitiveness.EssenceMore importantly, the huge population scale is actually a strong consumer engine. At present, the scale of India's consumption stock is 2.3 trillion US dollars. Investment bank Goldman Sachs predicts that by 2031, the Indian consumer market will soar to $ 5.2 trillion.The expansion of the consumer caliber and the development of consumer kinetic energy is directly driven by the rise of the product sales volume of the supply side, and the comprehensive improvement of revenue profit, including medical manufacturing, clothing manufacturing, automobile manufacturing, food manufacturing, battery productionMany industries such as home appliance manufacturing will benefit from China.
Betting of Labor Quality
It is exactly the charm of the huge demographic dividend and the charm of the huge consumer market. India has become an ideal place for foreign -funded enterprises to start investment layout.Data show that in the past 10 years, India's foreign direct investment (FDI) has accumulated more than 960 billion U.S. dollars, and the actual use of foreign investment in the year has increased from the initial $ 24.3 billion to $ 71 billion, an increase of 290%. At the same time142 rose to 63.In the glowing lineup of transnational companies, it is easy to see the beautiful figures of global manufacturing head companies such as Apple, Tesla, and Samsung.Utilize the abundant foreign capitalEnterprises, India's manufacturing can not only through the power of capital grafting, extend the layout of the industrial chain and fill the industry's shortcomings in China, but also win the overseas sales channels and incremental markets faster, and deeply embedded in the international cooperation division of labor systems.
It is worth emphasizing that the development of the service industry, especially the leading development of IT technology, not only allowed India to undertake more than 45%of the outsourcing services worldwide, but also the upgrade of the domestic manufacturing industry with a strong driving engine.On the one hand, many remote information and software design companies can provide manufacturing companies with service support from product design to customer customization, and enhance the flexibility of enterprise production and the sensitivity of market response; on the other hand, IT companies can output through technology output through technology outputFor enterprises from production to sales, from manpower to finance, financial, from warehouses to workshops, they are empowerment to enhance the efficiency of the entire process management of the enterprise.Not only that, IT companies can also carry out capital in -depth with manufacturing enterprises to generate a new ecology of manufacturing services faster.
However, the Indian manufacturing industry is also bound by labor quality.Data show that the current number of adult human -blind people in India is as high as 280 million. Among the 542 million labor force, only 73 million people have received some form of vocational training (including formal and informal). The proportion of formal technical workers accounted for only 3%, Far below China (24%) and Japan (80%), and the overall labor rate is less than 50%.The low -quality workers are not conducive to the technological progress and innovation of the enterprise, but also inhibit the intensity and efficiency of India's manufacturing industry's rewriting inherent technical gap.
While software is difficult to match, there are many hardware rigid constraints facing manufacturing.India's infrastructure, especially logistics and digital infrastructure, is relatively backward, and has a long -term shortage of resources such as power and water.Make up these key shortcomings require a large -scale financial investment. The problem is that the current total debt of the Indian government has reached the highest record of US $ 2.1.5 trillion, and the proportion of debt has risen to 88%.The clever woman is difficult to cook without rice. If there is no stronger funding support in the future, the infrastructure is difficult to fundamentally change, and the space of the manufacturing bomb jumping will inevitably be suppressed.
The author is a director and professor of economics in the Chinese Market Society
