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MACHINIST - Indian IPRs, designs needed to ramp up manufacturing sector share in GDP to 25%

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Indian IPRs, designs needed to ramp up manufacturing sector share in GDP to 25%
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Written by Viswanath   
Tuesday, 26 April 2011

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New Delhi: Only with more Indian products with Indian designs and  Intellectual property rights (IPRs),  would it be possible to achieve the ambitious target of 25% share  for the manufacturing sector in GDP from the present 16%, for employment generation and balanced economic growth.

Assembling of products with value addition above the threshold would bring to the market 'India manufactured products' instead of imported ones, but their contribution to the economy would be limited, said Dr Ashok JhunJhunwala, Professor, IIT Madras.

"Key is the design development and IPRs. They can bring down cost. They would be user-friendly, adaptable, easy to monitor and environmentally safe. If the products could win in the Indian market they could win elsewhere in the world," he said.

Considerable progress has been made in the automobile and pharmaceuticals sectors. But in the fast growing telecom sector the true Indian presence was very little. Most of the products and services were imported or assembled.  Though there were leading operators and over 800 million mobile connectivity, there were hardly any Indian design or IPR. The royalty payment for every new line ranged from $ 12 to $15.

Dr Jhunjhunwala said, because of these factors, the second largest import expenditure, next to crude oil, was for telecom products.  India has the capability for creating IPRs. "We are creating them for companies from other countries, including China," he said.

A break from this trend was necessary for the growth of the manufacturing sector, he said.   In the 2G and 3G areas there was no Indian IPRs. But for the 4G there would be significant Indian presence.  If this trend continued India’s telecom imports could come down to nil, he said.

Dr Jhunjhunwala was addressing the fifth edition of the two-day "The India Finance Forum", organized by the Confederation of Indian Industry (CII).  It began on Wednesday.

Speaking on the topic of the discussion, `System and Technology – Adapting to the Future’, he said development of considerable amount of Indian IPRs was possible if the industry, academia and government came together and worked for the creation of products with a competitive edge in the local and global markets.

One of the critical areas of competitive success was product and service innovation. Cloud computing which required no upfront investment on infrastructure or software, with the facility for `pay as you use’, was becoming very relevant in the manufacturing sector, Dr Jhunjhunwala said.

 
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