Make in India with Japan

Today, India must be very careful in importing engineering capital goods from China, particularly in heavy engineering sector such as power equipment, which some power projects have resorted to. It may be very costly to the country ultimately. This is the best time when Indian business houses negotiates with the Japanese or South Korean manufacturers. One O. Suzuki has made India an automobile nation. I would love if the Government of India appreciates his contributions and award him with a honour. In high tech manufacturing such as helicopters, UAVs etc. the same model of the manufacturing will be rational.

Modi-Shinzo Summit -A Boost for Indian Manufacturing : 

1. Bullet Train Project which is coming almost at no interest burden, will boost India’s manufacturing sector greatly. As the joint statement says, “The two prime ministers committed to advancing ‘Make in India’ and transfer of technology in HSR (high-speed rail) projects, and expressed optimism in this direction.” One specific move is the signing of a joint venture (JV) between BHEL, Bharat Heavy Electricals Limited and Japan’s Kawasaki Heavy Industries (KHI) for the manufacture rolling stock for the bullet train project. KHI also manufactures the Shinkansen high-speed bullet trains. A bullet train requires specialized aluminium coaches which the state-run firm plans to manufacture at its Jhansi (Uttar Pradesh) or Bhopal facility (Madhya Pradesh). BHEL has also a technology collaboration agreement with KHI for the manufacture of stainless steel coaches and bogies for metros.Bhel’s manufacturing capacity of 20,000MW per annum was already getting affected with a limited order inflow. 
It is also an opportunity for many small and big manufacturing companies of India with facilities and capability to get business from this project. For example, I am sure that the companies like Bharat Forge that already exports many manufactured parts, would be on such look out .

2. But one of the landmark announcement on the sides of the Summit was from the Japanese automaker Suzuki Motor Corp. was that its joint venture partnership with Toshiba Corp. and Denso Corp. will start making lithium ion batteries for India and international markets from 2020. The lithium battery plant of Suzuki in Gujarat would see an investment of Rs1,151 crore ($180 million) and will come up at the Suzuki Motor Gujarat (SMG) campus in Hansalpur, where land has been allocated to the project inside the vendor park. It is real start of so much talked about e-Vehicles in India. Further, SMG will invest an additional $600 million for setting up its third car manufacturing unit in Gujarat’s Hansalpur area, taking its overall investment in the factory to $2.1 billion. With the third unit in place, the company’s overall production capacity in the Gujarat would go up to 750,000 vehicles. The Hansalpur facility will create employment for 10,000 people. 

3. For me the most important part of the joint statement was that Japan agreed to start the first four Japan-India Institutes for Manufacturing (JIMs) in the states of Gujarat, Karnataka, Rajasthan and Tamil Nadu- the four manufacturing states, in 2017. These institutes will boost up the quality of education and skill in manufacturing that India badly need to push it as manufacturing nation as with Germany, Japan is still the strongest manufacturing country with manufacturing culture. India has learnt a lot. And the number of Deming Prizes that have come to India is an indicators.

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