Saturday, November 20, 2010

Why Manufacturing is Important for any Economy's Growth?

Today, the biggest challenge of Super Powers like USA and UK, are the declining trend of their manufacturing and assembly facilities.   Same time, Countries like China, India and Brazil have their drivers as Manufacturing Industries.  Today, China seems to be the single largest nation termed as the "Manufacturing Hub of the world" and there are very large amount of products manufacturing only in China today.   90% of computer and laptop parts are produced in China.  70% of world's subsidiary and ancillary production is happening  in China and India.   Yet the irony is that these countries are still to get into the spectrum of realistic development coined with the people's growth inside the countries.  But surely in the next few years and less than a decade.. these countries will enrich in to the global trajectory of growth as Economic Super Powers.  
Amidst all the hype of media and acceptance of world Nations, both India and China have a long way to go in terms of internal improvements, creating a greater infrastructure, taking the innovation and human intelligence to new parlance, and promote agricultural revolution and industrialization at grass roots.  Export is not the only key to the growth of the country.   Doing away with the greater disparity between Rich and Poor, overcoming Poverty and unemployment,  creating a harmonious society away from the turbulence's created in the name of language and religion,  and strong control on the local governance free of political corruption have to be brought to the front burner to make these countries sustain their transforming economic growth.  
Today, as a Nation, we have challenges of large scale corruption, political power play, rural and urban divide and still existing unemployment and education needs.  Despite all the challenges, today the human intelligence of India have widespread and created jobs across the globe.   The reason behind being the manufacturing potential of India and China.  Yet, there is a long way to go to sustain indigenous products, create a reverse brain drain that can bring in technical competence to build our own scientific and advance nuclear machinery and airplanes that will put India at par with other advanced nations.    The nation have to address the infrastructural needs, which in turn would create manufacturing needs and accelerate the growth of the country in the right direction..   
This is a sure chain reaction.   Export is a blessing and export creates manufacturing needs providing quality and competitive production houses.   These production houses create technology and innovation., and create jobs for the education urban lot.  The penetration of the growth to rural areas is the only solution to combat the increasing struggles of urban population in terms of housing, infrastructure, transportation and sustainability.  So cities expand creating more housing needs, creating transportation needs and bringing in more opportunities to expand our railways, roadways and industrialization.   Mariamalainagar near Chennai is classic example of how the manufacturing would pave to expansion of cities and bring in larger transformation.    These increase the need of indigenous industries that caters to the needs of steel, cement and wood, paints, and labour.   Construction industry grows.  With increased transportation needs, the need to build buses and trains grows.  Slowly the movement of population from rural to semi-urban areas start to meet the demands and needs.  This increases potential increase of opportunities of good education to rural students and bring in a change.   There is equal needs to build schools and roads in rural India.  As corporates expand outside the cities, they adopt villages to lay roads and provide voluntary services like evening education, mobile health facilities, awareness to combat social issues  and bring in a dynamic awareness.   The need for sustainable food facilities and self-reliance emerges to combat the growing cost of living expenses.    This brings in a need to encourage farmers to use technology in agriculture, promote agriculture with the cooperative society and government help.   The backbone of the Nation is Agriculture and it sustains from perishing.  Farmers need education and awareness to manage crops damage, creation of integrated water systems and this creates a need to bring in a Nehruvian policy of building dams and reservoirs, there again creating a job market.   Self-reliance in food grains and agriculture growth paves way for people to invest in education and technological revolution...there by significantly impacting the economic well being at grass roots. 
The bottom line, is every Nation should create a need for growth of the manufacturing facilities, at the same time, transfer the bit of growth and combined energies to the grass roots of the Nation, then alone, the Nation can be called a Developed One.   It is not multi-storied building of metroes that would make a Nation developed, it is the common man's struggle finding an end and ease towards better living and people of these countries free themselves from the political fiasco and power play, and are able to live a decent and uplifted lives.  Then alone, we can be called DEVELOPED.   So, it is the time to invest and energize our manufacturing plants and factories and spread their growth to the grassroots of the Nation. 


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