Industrial parks along with MSME can turn Make in India a real Success!

The Indian MSME forms the very backbone of our country’s economy. Contributing  8% to the nation’s GDP and adding 40% to the country’s total exports, the MSME is paving the way for the country’s economic growth. Playing an integral role in industrial development and growth with 45% to the total industrial output, MSME is also leading to the much desired socio-economic transformation of the country. With the support of right government initiatives and conducive business policies the industrial lands available in and across the country like industrial land in Pune and other regions are now turning into lucrative economic channels.

The ‘Make in India’ initiative of the government envisions the growth of MSME, by carving the development trajectory for the domestic industries. It has become one of the fastest growing and highly popular government initiatives at global platform. The program aims to facilitate investment, promote innovation, enhance skill development etc, by utilising the available human talent, creating additional job opportunities and empowering the secondary and tertiary sector. The initiative aims to achieve its mission of sustained industrial development by gaining more points on Ease of doing business index.

The various challenges that are often faced by the SME sector at different levels include lack of conducive business policies, limited amenities, credit gaps etc. With the concept of industrial park gaining popularity the various hurdles coming in the way of industrial development can definitely be surpassed. Government is now setting up industrial parks in designated places by offering industrial land for lease and manufacturing space for rent.

These industrial parks are special zone locations that are provided with multiple infrastructure benefits and state-of-the-art facilities that are conducive for boosting industrial growth. Addressing the core issues like power and water supply for industrial units, waste and drainage treatment systems, adequate lighting, transport etc, these industrial parks can give the desired impetus to the growth of smaller and bigger enterprises . Furthermore, the government’s participation and assistance from the respective quarters in the form of elimination of unnecessary regulations, tax exemptions, electricity duty waiver,interest subsidy and easier bureaucratic processes are making industrial parks hotspots for attracting investments from different sectors like automobiles,chemicals, IT & BPM, pharmaceuticals, construction,media and entertainment etc.

There are some industrial parks in the country like the Khed City,a Pune industrial area that are strategically developed to promote a highly conducive environment for companies to grow and generate greater economic opportunities.The integrated industrial city equipped with all the requisites for industrial development like good logistic connectivity, top-notch infrastructure etc, has brought together the national as well as international companies under one umbrella, thus promoting the concept of industrial integration and sustained development. 

While the Make in India project has set the ball rolling for industrial expansion and growth, a lot more needs to be done to achieve the desired objectives. More initiatives and programs are required  to encourage the real estate developers to support the economic development engine. Industrial parks have the potential to unlock the power of MSMEs. Equipped with the latest technologies, well-planned infrastructure layout, good transfer facilities, these industrial spaces along with the MSME can refine and enhance our economic structure.

The Scope & Trends Shaping the Automotive Sector of India

In the automotive industry scenario worldwide, India is bracing itself for unprecedented growth in the coming years. With the currently ongoing market trends & the regulation of Indian business policies, the future of the automotive industry in India looks awesomely promising! It’s a great time for OEM and component manufacturers in the country to aspire for a global standing.

According to reports, India is on its way to become the world’s 5th largest economy by 2019 and would amount to USD 4.7 trillion worth economy by 2023. This positivity in the air can be emanating from the rapidly growing consumer class, expanding infrastructure and the ease of doing business in India. The Indian automotive industry became the 4th largest in the world in 2017 with sales increasing 9.5% year-on-year to 4 million units (this is excluding two-wheelers) and it was the 7th largest manufacturer of commercial vehicles the same year. This is also a great time for every industrial city in India as more and more automotive manufacturers are mushrooming in the landscape. All these factors are set to drive the automotive industry in the forward direction.

The Indian automotive industry is already leading the world in many segments viz. two-wheelers, segment A cars, and tractors. It is expected that vehicle sales in India would multiply around threefold from 26 million to 76 million by 2026. Several initiatives by the Indian govt. and the major auto players in the Indian market are expected to join hands and make India a leader in the two-wheeler and four-wheeler market in the world by 2020. This is a green flag for the Indian automotive components industry to double the contribution to manufacturing GDP with a four-fold growth in size and a six-fold growth in exports. If you are looking for an industrial land for lease, now is the time to look towards India.

Trends in the automotive industry

The future of the auto OEM and auto component industry is dependent on multiple trends and ongoing policies. The quest lies in understanding the opportunities that are created by these trends and how the automotive industry can be prepared to accrue benefits from them. The key trends defining the automotive industry include the following:

• Macroeconomic and Demographic trends: India is undergoing rapid urbanization which means that 500 million will move to the cities by 2030. Add to it the rising economies of the around 60 million consumer class by 2025. More and more people will be employed and capable of spending on four wheelers. Mini cars and hatchback have been consistent breadwinners for the automobile industry in India, with a share of around 50 percent and growth of 6 to 7 percent between 2014 and 2017. Major growth will come from SUVs, sedans and luxury vehicles.

• Government initiatives: The government seems to be working towards long term growth in the automotive industry while reducing dependency on oil as fuel through the automotive mission plan and the likes.  The govt seeks to uplift the local emission standards from BS-4 to BS-6.

• Global manufacturing hub: India ranks 30th among the list of top 100 global manufacturing hubs. This can be attributed to the ‘Make in India’ initiative by the govt. India has improved on 9 out of 10 parameters. One of the leading industrial land in Pune reportedly saw a rise of 11% in investment from multinational companies in the last 4 years.

Many companies in the automotive sector are leveraging this wave of positivity and looking at India as a hub for low-cost, high-quality products. Till then, India slowly but steadily gears up to become a world leader in manufacturing.