Excerpts from the discussion:
Mr. Narayanankutty, Senior Director DHL
Mr. Narayanankutty started on a positive note that India has come a long way in terms of export in many sectors such as pharmaceuticals, Information Technology, textile etc. than what it used to be. However, the export growth in textile has dipped due to Bangladesh, which is exporting at cheaper rate. The main problem, though, is not the cheaper rates, but the residual waste that arises due to lack of skilled labors, manufacturing capacities, regulations, policies and ineffective core supply chain.
He emphasized that the need of the hour is reducing the bottleneck in supply chain, and the main factors which are hindering the smooth flow of supply chain are lack of political will and time consuming regulatory norms. He was optimistic that these bottlenecks would be reduced as the current government is more focused on 'Make in India' campaign. However, Mr. Narayanankutty believed that government should move away from supply chain control and should pass it on to some private conglomerate. The government should handle infrastructure projects through PPP model with more private control. He concluded by saying that the export growth in one sector not only generates employment in that particular sector, but also generates employment in the overall eco-system.
Mr. Rohit Sarma, Manager, Supply Chain Consulting, Chainalytics
Mr. Rohit Sarma spoke about the importance of 'Make in India' campaign and how it would help the government to reduce trade deficit while also acting as an employment generation catalyst. However, he was against the idea of reducing import, as the export oriented economies do suffer in a long run due to lack of domestic demand.
In his view, India should not only focus on promoting export in service sector, but also in new sectors such as space, defense and agriculture products. He was more focused on the agriculture products as he put forward a fact that half of India's population depends on it. On the other hand, he also emphasized the need of an improved basic infrastructure like roads and railways which could be key elements in reducing cost while also improving turnaround time. Lastly, he supported the idea of having a multi-model support system to improve the efficiency of supply chain, as core supply chain is not that efficient.
Mr. Y. J. Rao - Senior Consultant
Mr. Y. J. Rao pointed out that there is a huge market potential for manufacture of generics. He stated that as far as intellectual property is concerned, India has an edge over most of the other countries and Indian companies are more reliable as far as supply is considered. He was of the opinion that only by looking at these aspects there is a lot of scope for exports, should India go for bulk manufacturing. The agrochemicals business also has a huge potential, he said.