Research talk on mastering the make-in-India challenge
Description
Despite India’s economic growth and potential, developing a successful strategy for the country remains one of the most complex challenges for foreign multinationals. This difficulty is rooted in the realities of scale and cost dynamics in the Indian market. Many foreign firms have struggled to achieve profitability using their existing product portfolios at the scale required to meet local demand. Additionally, India has historically offered foreign direct investment incentives that are less attractive compared to those provided by neighboring countries such as China. However, according to an estimate by U.S.-based management consulting firm A.T. Kearney in 2014, India’s share of global trade is projected to increase significantly—potentially reaching around 6 percent by 2025, which is approximately five times its earlier share. Given such growth prospects, waiting for target income segments to mature or for stronger government incentives may not be an effective strategy for multinational firms entering or expanding in India.
Copyright Date
January 2018
Publication Date
1-1-2018
Keywords
Make-in India, Production and operations management, Economic growth, Global trade
Conference
Pre- Conference event, IMRDC 2018, 2nd January, 2018, IIM Bangalore