Outsourcing Manufacturing

I found a letter credited in my name in Financial Express letter to the Editor column. http://www.financialexpress.com/fe_full_story.php?content_id=74610:
LETTERS TO THE EDITOR

Outsourcing manufacturing

Posted online: Saturday, November 20, 2004 at 0000 hours IST

This is regarding the article ‘Should you be investing in India’s manufacturing outsourcing story?’ (Nov 14). India wants to develop a strong manufacturing sector along with an equally strong and capable services sector. An emphasis appears to be necessary on the manufacturing sector which has fallen behind, just as agriculture has. For a country like India, both manufacturing and agriculture must grow equally strong. They can’t be given up for the services sector.

The new concept of outsourcing and concentrating on business of core competence has to be extended by the bigger manufacturing companies of India including PSUs. Companies like Bhel and HMT must outsource as much as possible and create a manufacturing culture in the country as has been done by automobile companies. Big companies can also outsource the engineering and design of the products and production toolings, prototypes manufacturing, accessories manufacturing.
India has certain basic advantages in manufacturing such as raw materials and the required technical skill. With focus on the basics of manufacturing, many of Indian manufacturing companies are showing the way to becoming globally competitive in high end manufacturing. Let the thrust continue.
– Indra Roy Sharma

I wrote my entry “Manufacturing Sector- a road map” on November 10, 2004 in this blog. I had also emphasized on the outsourcing by the huge numbers of defense and railways manufacturing units that are managed or mismanaged by the government and ministries. A large scale outsourcing there will boost the manufacturing sector to a great extent by creating or strengthening a large number of manufacturing enterprises in the country and bring in better utilization of the constrained resources of the government too. I only wish this aspect is appreciated and some effective action is taken if the manufacturing sector is to be encouraged to come up in big way.

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