Make in India:Opportunities and Challenges-Supply Chain Management

The "Make in India" campaign aims to increase the contribution of the manufacturing sector to GDP from 16% to 25% by 2022&thus provide impetus to the economy. Reports state manufacturing sector would contribute >25% till 2034. The campaign focuses on 25 key areas, across predominant sectors viz. automobile components, chemicals, pharmaceuticals, oil and gas, textiles and garments, and others. It also focuses on service sector comprising of the supply chain, retail, e-commerce, hotels&hospitals to grow from 52% to 60% in the coming years. The logistics industry is thriving in the country post-industrialization and still has a lot of ground to cover. Supply Chain is an essential lever for the manufacturing sector to grow. Right from managing the inbound of raw materials to distribution of finished goods, supply chain management has a colossal impact on this sector. Manufacturers, e-commerce, and retailers depend on third party logistics service providers for storage & distribution solutions which are integrated from end to end.

Make in India presents a plethora of opportunities for supply chain management to grow, along with enormous challenges. This paper aims to highlight 3 critical areas for an efficient supply chain. The first one is Capital in Infrastructure; India is the 7^th largest country in the world and just covers one-third of its network capacity. This warrants investment in infrastructure like road, rail, and waterways. The introduction of GST will help consolidation&increase capacity and efficiency. The assurance of excellent delivery comes with Capability; in providing trained and experienced human resource. The major challenge is to retain manpower&hence invest into continuous learning & development. The third critical area is Compliance; with growing business needs, adherence to the laws of the land viz. company laws, Labor laws, and environment laws has its significance. Adequate CAPITAL investments coupled with efforts on capability development & compliance will pave the path to effective supply chain management for blooming service and manufacturing sector.