What’s the initiative ‘Make In India’?
Read how the Indian economy scaled its growth by bringing in more companies and how Amazon overcame challenges and barriers through the Chai cart working with local suppliers.
Overview
Make in India is a well designed program to increase opportunities for investment, innovation, challenge and develop skills, safeguard intellectual property, and compete with China and the US as a leading country for manufacturing. It was first established in 2014 by the national Government of India in part with the Dept. of Industrial Policy and Promotion, and Ministry of Commerce and Industry. The mission is to increase its overall economy through nurturing its national talent and increase its rank on the Ease of Doing Business index.
“I want to tell the people of the world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity that come make in India.” -Prime Minister of India, Mr. Nerendra Modi, Independence Day Speech
With the bar set high, Make in India focuses on 25 core sectors including the aviation industry to the auto industry, the medical industry to the media and entertainment industry, and manufacturing goods such as textiles, other miscellaneous articles of clothing, like garments and leather to biotechnology.
The Growth of Manufacturing in India
India is a major player in the manufacturing industry for the following reasons: it ranks as the third largest economy in purchasing power, it has a massive talent of engineers and factory workers, and it invests heavily in its intellectual property with a talent pool of English speakers to take on leadership roles.
Countries like the United States, Japan, United Arab Emirates, Germany, and Sweden are all taking notice of the advantages of India’s labor and growing economy: from the latest development of the Goods and Services Tax in 2017 (GST) to the streamlined process of an online application for permits to begin construction. Its ambitious plan makes Make in India a program recognizable for it to be on the agenda at international events, the World Economic Forum at Davos in 2015.
Three Highlights of Doing Business in India
Goods and Services Tax (GST) — Effective as of July 1, 2017, the GST is one collective change made to reduce taxes and cost of local production. Brought in more than expected global businesses and foreign investments. Improving is overall rank by 53 places on the Paying Taxes indicator.
Improved Connectivity — BharatNet, the world’s largest rural broadband was implemented on December 31, 2017. Optical fibre cable serviced to more than 100,000 Village Councils as its first phase to increase connectivity and improve its digital delivery for eCommerce to the livelihood of surrounding villages. An overall increase of its Technology Readiness Pillar of the World Economic Forum jumped up three places in 2017
Solar Power- India is leading in renewable energy, ranked fourth in the world for its infrastructure to create power using wind and ranked sixth for the number physical solar power windmills that generate power. By the end of 2022, it sets an expectation to install 175 GW of renewable power.
Amazon in India
Amazon in India expects to expand to 175 million shoppers in the online retail market, no later than 2020. Exceeding or hitting the target number of $100 billion. How did Amazon make it to its status in India today?
The rise of Amazon in India was no easy feat for the company. The way of doing business was initially outdated. Amazon had to change the way the Indian economy did business: most of the transactions were done in-person through cash payments. So Amazon did what their best at, created alliances with suppliers in the local economy, and convinced the suppliers to understand selling online is a good bet to increase marketability on their products in a less traditional way than the Indian suppliers were familiar with.
What is Amazon’s Chai Cart?
Initially inspired by the cultural significance of Chai tea in India. It was a breakthrough marketing tactic for Amazon. The Amazon Chai Cart drove engagement and knowledge to small-business owners. Taught small business owners the benefit of selling online through the ecommerce marketplace. Traveled across 9,400 miles and into 31 cities engaging over 10,00 sellers. The mission of the Chai chart was successfully launched to a quick turnaround of sellers selling online, addressed their hesitations and skepticism.
Today the Chai cart was phase one of two. The second phase is Amazon Tatkal, or “studio on wheels”. Following their previous marketing tactic of the Chai cart to increase sellers or suppliers knowledge. The Amazon Tatkal demonstrates how to launch its services, like registration to sales training.
Amazon overcame the challenges faced by doing business in India, to provide a growth to their economy working with mom-and-pop small business owners and navigating the obstacles effortlessly by building alliances with the locals to ensure delivery, sales and profit.
What economy do you think is on Amazon’s list next to scale?
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Next post coming up: What is the difference in approach between multichannel and omnichannel? The article will be posted next week.
