The share of manufacturing in India's GDP has remained stagnant at about 14-16 percent despite a slew of policy measures taken by successive governments. In his book "Getting Competitive" former bureaucrat and current chairman of Maruti Suzuki, RC Bhargava says that this stagnancy in manufacturing growth is due to the lack of competitiveness as a stated policy objective.
According to him, reforms since 1991 to the recent 'Make in India' initiative, have not focussed enough on competitiveness. His prescription for increasing the share of manufacturing in India's GDP is to produce goods that provide higher quality at a lower cost, therefore making them better value. This in turn will help make Indian goods more competitive globally and also help bring in more foreign investment into Indian manufacturing.
To discuss the road ahead for manufacturing in India, CNBC-TV18's
Shereen Bhan spoke to RC Bhargava.