Improving competitiveness of India electronic manufacturing industries: a need for FDI policy liberalization

摘要

The Global Competitiveness Report of 2014-2015 by the World Economic Forum (WEF) focus on the balanced economic growth of countries through sustainable competitiveness. The purpose of the research study is to improve the competitiveness of the electronics manufacturing sector in view of the industrial policies and recently announce (2014) 'Make In India' initiatives by the newly formed government, from its potential of manufacturing, Foreign Direct Investment (FDI) and policy liberalization perspective. In order to undertake this study a sample survey is done. A sample survey is administered to sample of electronics manufacturing companies, government officials and the academician situated in India to elicit the opinion of professional managers, decision makers and researchers on industrial policies and FDI. Apart from this empirical analysis and five semi-structured interviews are taken for the focused insight on why FDI policy liberalization is essential for electronics manufacturing in view of 'Make in India' initiatives to improve the competitiveness of the industries. The research findings suggest that FDI is positively related to the FDI policy changes, FDI contributes to economic development when the country has substantial absorptive capability for the latest technologies, as India has the largest pool of educated people; those are familiar with needs and want of the latest technologies products. The raising information technology (IT) infrastructure in the country has also created the demand and huge market for the foreign and domestic investors this is also enhanced bye-governance initiatives of taken up by the government . In addition to this, FDI act as vehicle for the transfer of latest technology, thereby contributing economic growth than the domestic investment. Further, there is need for domestic manufacturers to form a collaboration and participate in development process and heads towards a sustainable competitiveness. The research study considers FDI focused strategies, and argues that there is a prominent role for policy intervention under 'Make in India' initiatives.