Bhubaneswar: the manufacturing industry in India is experiencing a boom in the post-liberalization. Yet a wide range of issues remained to clarify reach Manufacturing Excellence and competitiveness of local industries in the global scenario.

It was the opinion of stakeholders on Ashwamedh 2005, Conference on Manufacturing Excellence India, organised by Xavier Institute of Management here on Saturday.

Chairman and Managing Director of Nicco Corporation and former chairman of the CII National Rajive Kaul said that the industrial sector, with growth of around 6 percent compared to last year.

The textile industry have also been important contributors to the Indian economy. With a total export share of over 21 per cent of textile, manufacturing was the largest purchaser of foreign currency in the country. It was estimated that the profitability of the sector, expected to reach about 34 billion dollars in the next five years, “he said.

Dean of the Indian School of Business (ISB), Hyderabad MR Rao stressed that the creation of an atmosphere conducive to the inclusion of the manufacturing sector. Without basic infrastructure such as electricity, transport and communication network, including ports, roads and tracks, the industry is lagging behind in the competitive environment difficult, “he said.

SOFTWARE companies rent of India for over 60 percent of the costs of graduates, and this trend may affect the growth of manufacturing industry, as well as the quality of education in the Faculty of long-term, according a study by the Indian Institute of Technology in Bombay (IIT-B). Students in all fields of technology are attracted by the software, wages are higher in comparison with the former sectors of the economy, the first results of the study on the basis of data available to placement with IIT - B since the early ninety years until today.

“The recruitment of computer drawings more or less in line with the forecast from the National Association of Software and Service Companies ()-2005,” says the ’study.

“We IIT-B, as an example for IITs in general. Tendency of the majority of graduates move into IT companies is also available in the higher education institutions and other regional institutions of higher education engineering engineering throughout the country, Anand Patwardhan, Associate Professor, Shailesh J Mehta School of Management, IIT-B of the study, said the PTI here.

He said, during the past three years, nearly 75 percent of Technology IIT-M-B, the computer workstations.

He said that if the current trend continues, local engineering universities that will be affected due to the absence of the Faculty. “Many of them are already struggling to find good teachers. It is to deteriorate. “One of the factors that attracts companies of youth is the vast difference in pay up to five times than the traditional sector,
He said.

But it’s not all rosy for the computer industry. Problems such as Burn out, the lack of challenging missions and economies are some questions that students involved prior to the opening of an offer software, he added

BANGALORE: The lop-sided focus on information technology industry by the government may lead to a social problem in the future. Yes, the IT sector may have the power to increase the per capita, but it is only the manufacturing industry which can provide the job opportunities.
Basing the theme on the need to give manufacturing industry its due, the Indian Institute of Management Calcutta Alumni Association, Bangalore Chapter, is hosting a seminar on ‘Indian Manufacturing, challenges, strategies and best practices’ in Bangalore on April 12.
Chairman of the organising committee Anil Tendulkar said that India has been missing out on opportunities in the manufacturing industry both locally and globally, by not creating an environment conducive to the growth of the industry.

“Take the case of China, where 35 per cent of its GDP is from manufacturing. In India, the contribution of manufacturing industry has slipped from 19 per cent to 16 per cent over a period of three years. Considering the importance of the manufacturing industry for creating jobs in the future, it is imperative that we take corrective action.”
While liberalising labour laws, steps should be taken to reduce cascading taxes through VAT and bringing down taxes to a level of 15 per cent.

Tendulkar said there is a misconception that liberalisation of labour laws will lead to mass unemployment. On the contrary, the opposite is true. Liberalised labour laws may lead to retrenchment in the short run. In the long run, many industries would want to set up factories as they would feel secure to the flexibility in connection with labour deployment.
China creates 2.50 million jobs per year in the manufacturing sector as against only one million in India. Also, drop in local taxes will lead to a spurt in domestic demand, which in turn will promote local manufacturing industry and employment.
The objective of the seminar is to drive home the need to speed up the actions required to capitalise on the opportunity that manufacturing offers and also to educate participants on the various issues involved.

A number of eminent personalities including Tata Sons Limited executive director R. Gopalakrishnan, Hyundai Motors India Limited president BVR Subbu, BEA country manager Srikanth Rao, Asea Brown Boveri vice chairman and managing director Ravi Uppal, McKinsey India engagement manager Deepak Goyal, The Economic Times senior editor Narendar Pani and Peenya Industries Association founder secretary and ex-president N. Narasimhan, will form the panel of speakers.