Business / Industry Sectors
Can "Make in India" be a real opportunity for Israeli companies?
27/02/2015

The most common mantra, perhaps, when we talk in recent months on the economy of India, is "Make in India". Some of you are probably asking yourself - what is it anyway? Well, it's India’s international strategy, that was conceived by Prime Minister Narendra Modi, and launched last September.

 

The purpose of the program is to attract foreign investments to India, and by that to strengthen local industry. Among the goals - increasing share of manufacturing in GDP from about 16% today to 25% in 10 years, and thus increase the rate of employment. In practical terms, the purpose of government is to improve the position of India in the "Doing Business" index from the 142 place to the 50th place, within 3 years.

 

This goal should be achieved by facilitating the country's bureaucracy, shorter process time and making government more transparent. The Indian government has decided to focus on 25 sectors, including fields that can be very relevant to Israeli industry, like biotechnology, renewable energy, pharmaceuticals, security, information technology and more. Click here to reach the program's official website.

 

Defense Minister Moshe Ya'alon, during his visit to Bangalore Air Show last week, addressed the issue and noted during his meeting with Prime Minister Modi, that India wants to help and to harness Israeli technology in favor of making this initiative a great success.

 

Is this initiative indeed fraught with opportunity for Israeli technologies? Well, five months after the launch of the program, and despite a number of multinational companies that have decided to invest in India; it is probably too early to tell. We can definitely see many enterprises which are beginning to stand up under the auspices of the program and stimulate the country's economy. Worth mentioning is the decision to establish immediately 5 "smart cities" around areas that are designed to turn into large industrial centers. The decision to build these cities is part of an overall plan of establishing 100 smart cities. (Did I mention that the Prime Minister Modi is an ambitious person?).

In addition, this initiative has been seeping from the "top-down", and gave birth to a daughter Plan "Make in Maharashtra", in which the local government plans to attract US$ 85 billion in foreign investment over the next 5 years. This initiative aims to reap the results in the form of multi-national majors that decided to establish centers in Maharashtra, among them Microsoft, GE, Cognizant and more. Maharashtra is one of the largest States in India.

For more information you are welcome to contact Israel’s commercial attachés in India.

 

The aouthor is Yaniv Tessel, Indo-China Cadet, Foreign Trade Administration

 

Source (Hebrew): Israel Foreign Trade administration

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