At present, India’s manufacturing sector contributes to merely 15% percent of our GDP. It employs an abysmally low 12% Indians.Under Make in India, the Indian government has plans to give a much-needed shot in the arm to India’s manufacturing sector. The goal is to lift the share of manufacturing in the GDP from the current 15% to 25%.True, manufacturing in India possesses a huge amount of untapped potential, but the challenges it faces are equally, almost insurmountably huge.
A huge percentage of India’s manufacturing industry falls in what we call the unorganised sector. India’s manufacturing is dominated not by large factories or industries, but by millions of small and medium sized enterprises. According to the sixth economic census released last year, there are as many as 58.5 million establishments that employ about 131.29 million Indians. Many of these are tiny household units, small workshops and factories employing 10-15 employees at max. Without being able to achieve economies of scale, these remain at a competitive disadvantage. They’re under-skilled, inefficient and lack capacity. The workers are underpaid, and owners fight competition tooth and nail in order to survive. This is not conducive to India’s manufacturing competitiveness. Many South Asian countries are stiff competitors for India. Even though these countries are small in size, they have the advantage of being better integrated into global supply chains.
Much of India’s unorganised manufacturing units is located in rural or semi-urban areas and serves limited local markets. Due to lack of infrastructure and logistical capabilities, they are unable to find and expand their market. Access to trustworthy credit facilities too is often a pipedream for these units. With no branding and zero marketing capabilities, they are at a definite disadvantage against competition. Lack of experts to provide installation, after-sales support and maintenance is another headache.
MachinenMotor aims to change the status quo with a focus on bridging the gap between the manufacturers in India and the global market of buyers. Our customer-facing mobile app helps buyers around the world find machines of any size and description and shop in just a few clicks. We run stringent quality-checks on every buyer and product that’s uploaded. We ensure transparent and hassle-free registration and secure payment methods. We provide logistics partners to deliver right to the buyer’s doorstep. Our expert team of engineers also helps buyers with installation, after-sales support and continued maintenance as well. Our numerous hubs across India provide expert guidance and customized solutions to customers and manufacturers alike. We also provide bank loan assistance. Aided by state-of-the-art technology and a deep understanding of the market, we’ve created MachinenMotor.com, which is the level playing field that empowers even the smallest machine manufacturer to find buyers across the world.
Integrating the unorganised manufacturing sector into global, national and regional value chain is the only thing that can ensure that this sector is economically viable. Only once these are economically viable, the workers in the sector can be paid decent wages, ensuring pro-poor growth – growth that trickles down and don’t just lead to increased GDP.
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