Mumbai, Maharashtra, India
‘Make in India’ the Prime Minister’s initiative, is a concept which is timed just right, said Niranjan Hiranandani, MD, Hiranandani Communities and Founder-President National Real Estate Development Council (NAREDCO – Maharashtra). “India’s demographic advantage remains under-utilized, despite a boom in the service sector. India’s policy-makers have realized that a labour-intensive manufacturing sector can not only generate more employment and increase the overall income levels, but also set in motion the wheels of business towards robust economic growth. As part of his efforts to make India a manufacturing hub, Prime Minister Narendra Modi has launched the ‘Make in India’ campaign last week. India Inc. welcomes the government’s plan to facilitate investment, foster innovation and build the best-in-class manufacturing infrastructure in India,” he said.
‘Make in India’ is an initiative which follows concepts which have been spoken of before, albeit in bits in pieces. This is a holistic vision’ which encompasses the interests of all stake-holders, pointed out Niranjan Hiranandani. “I recall how we had a ‘Vision for the New Millennium’, then a ‘Vision for 2010’ before ‘Vision 2022’. To my mind, what’s interesting is that we already have ‘Vision 2022’, which is the Prime Minister Shri Narendra Modi’s dream project: ‘A house for all Indians by 2022’. ‘Make in India’ is in sync, and follows similar lines: enhanced economic growth, which will lead to perennial employment and production of goods which in turn, will further augment the GDP growth. The impact on GDP would be an increase to 8 – 9 per cent, and should cross 10 per cent in the next 5 years, so that in 2022, India should boast of a double digit GDP growth. This in turn, will lead to an increase in production and will create volumes which will bring down the cost of production, so we will have a ‘dip’ in inflation, as also a ‘rise’ in employment. This will result in better standards of living with revised per capita income,” he said.
Focusing on the Prime Minister’s ‘Make in India’ campaign, Niranjan Hiranandani said it aims to boost the Indian manufacturing sector as also bring in massive investments. “So, ‘Vision 2022’ should be about ensuring that India becomes an economic super power, one where citizens also have eco-friendly living amidst environment-friendly Smart Cities – truly, a vision for which we all need to work together, and ensure that the dream becomes a reality,” he said. For this, the wish-list includes single window, time-bound clearances and permissions, these are basic things which Real Estate needs to fulfill the vision of Housing for All Indians by 2022. “Prime Minister Narendra Modi has promised more economic reforms and a stable tax regime so as to take manufacturing’s share in the gross domestic product to 25 per cent in the near future. Addressing the Make in India event in Mumbai, he promised to make India’s tax regime more efficient and said his government was streamlining processes to ease investments. India is simplifying processes like licences, security and environmental clearance, the Prime Minister also said there is an all-round emphasis on ‘ease of doing business’. This is a promising start,” said Niranjan Hiranandani.
Comparing the ‘Make in India’ campaign with what China has achieved along similar lines, Niranjan Hiranandani said that while cheap labour drove the success story of China’s manufacturing-driven economic growth, the same set of parameters might not work in India. “We need to tweak these to suit Indian conditions. For example, in the real estate and construction sector, we are struggling to get skilled labour in India. As at the beginning of 2016, we certainly don’t have the skill set to make in India, at least in the construction sector. ‘Make in India’ will be a success if we can ensure enhanced skill-sets and imparting knowledge through continuing education to India’s work-force,” he said.
“We already have the vision (Homes for All Indians by 2022) and the campaign (Make in India),” said Niranjan Hiranandani. “What we need to ensure success is to supplement both with enhanced skill-sets for the human resources, which will ensure ‘Make in India’ becomes a reality,” he concluded.