Fabs in India: The Debate Continues
There has been a lot of news lately about manufacturing under the “Make In India” banner. In the last ten days alone, the Kalyani Group has announced the country’s first-ever private missile subsystems manufacturing facility in partnership with Rafael Advanced Defense Systems of Israel, which will encompass design, development and manufacturing; elevator and escalator supplier Schindler has announced an investment into India's first Escalator manufacturing line; and Apple CEO Tim Cook has said that the company is set to ramp up its manufacturing in India.
Apart from this, according to news reports, two states—Telangana and Andhra Pradesh—have been cleared to set up greenfield electronics manufacturing clusters (EMCs), aimed at catering to the needs of electronic products manufacturing, electronic component manufacturing and semi-conductor designing companies.
Despite these positive signs, however, The Hindu, a leading English newspaper, reported last week that the Parliament’s Standing Committee on Commerce has questioned the low manufacturing growth – reportedly averaging just 1.6% in the last five yearsdespite a slew of Government initiatives aimed at promoting manufacturing and the ease of doing business.
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