Embracing 'Make Products in India'

The vision of Viksit Bharat sets forth a challenging agenda for India.

- AJAY KUMAR

A pivotal aspect is the imperative to elevate the per capita gross national income (GNI) from the current $3,348 to over $14,000, transitioning the nation from a lower-middle-income to the coveted high-income category.

However, India faces the prospect of ageing before prosperity if it does not reach this goal by 2047, when 14 per cent of the population will be 65 or above. India's annual growth must consistently surpass 10 to 12 per cent, compared to the present 6 to 7 per cent, to avoid the middle-income trap observed by Asian tigers like Malaysia, Thailand and Indonesia. South-Korea's success story in raising GNI per capita from $2,130 in 1983 to $23,860 in just 25 years, attributed to developing products in domains like electronics, automobiles, and defence, offers important revelations.

In a tech-driven knowledge economy, a product's intellectual property contributes half its value, making it challenging to equalise value-creation through manufacturing alone. China recognised this reality, changed course, and now aims to become the world leader in innovation by 2050. India's path to Viksit Bharat necessitates a shift from "Make in India" to "Make Products in India". The new strategy could draw insights from innovations during Covid-19 and in defence.

First, it is important to open up research and development (R&D) beyond the public sector, as in the case of space and drones. We need to add atomic energy and deep-sea exploration to this list. The opening up needs to be reinforced by proactive government measures to prevent legacy institutions from hindering private-sector entry. In defence, although the private sector was allowed in 2001, substantial participation was achieved only after 2018, when Make-2 and iDEX schemes took shape and indigenous solutions started emerging at a fraction of the cost and time. Creating an industry-led regulator like InSpace has also helped.