Upbeat mindset in the Indian economy
Are Modinomics fuelling an industrial renaissance in India? This question will be addressed during the India Day hosted by the VDW (German Machine Tool Builders’ Association) at the EMO Hannover 2017 on 20 September. Investors and rating agencies on the Indian stock exchange, at least, are anticipating good business opportunities in the medium term. Jeremy Leonard, Director of Global Industry Services at the British research institute Oxford Economics notes that “More scope for proactive economic stimuli when it comes to the refinancing costs of the commercial banks, plus the planned tax reform for goods and services, could unleash some accelerated dynamics.”
A view that’s confirmed by V. Anbu, Director General & CEO of the Indian Machine Tool Manufacturers’ Association. “Game-changing initiatives such as ‘Make in India’, opening up of strategic sectors to foreign direct investments, and the implementation of ‘One nation, one tax’ for goods and services have spurred manufacturing growth”, is his firm conviction.
India’s economy is growing
India’s economy is indeed expanding, as is its industrial production output. In the machine tool industry, the nation ranks 8th among the world’s largest markets, with a volume of most recently 1.7 bn euros in 2016. This corresponds to growth of eleven per cent in euros. For 2017/2018, too, a continuingly moderate increase in consumption is predicted. India imports around 70 per cent of the machine tools it needs. In 2016, these were worth approximately 1.2 bn euros.
The EMO’s India Day aims in particular to elucidate the perspectives for the mechanical engineering, automaking and aviation user sectors. Dr. Andreas Wolf from Bosch Ltd., for example, sees potential in the automotive industry. “Triggered by the new legislation in regard to vehicle safety and emissions, we’re going to be seeing rapid implementation of modern-day technologies,” he says. Milind Madhav Shahane, Member of the Board of Directors at Tata Advanced Materials Ltd., sees major opportunities in the growing importance of privately owned companies: “Since the turn of the century, India’s aviation industry has been experiencing dynamic growth at privately managed companies, supported by large conglomerates and their engineering expertise.” This is one of the main reasons why United Grinding has opened a subsidiary in Bangalore and set up a technology centre. “This enables us to perform meaningful tests on customers’ components and to offer realistic training for machine operators,” says C.R. Sudheendra, President India Operations of United Grinding.
India’s government keen to attract investors
The EMO’s India Day will also be supported by the Indian government. We shall be honoured to host Shri N. Sivanand, Joint Secretary of the Department of Heavy Industry in the Ministry of Heavy Industry & Public Enterprises. He will be spotlighting the government’s initiative for boosting the manufacturing sector. We shall also be welcoming six delegations of high-ranking Indian entrepreneurs, which will be organised and accompanied by various Indian customer associations and the staff of the VDMA’s liaison office in Kolkata.
“We are particularly gratified to note that it will be almost exclusively Indian speakers or pundits who are thoroughly familiar with the country from their own career experience there who will be presenting their expertise on the India Day,” says Gerhard Hein, who is the co-organiser of the India Day at the VDW, who are hosting the EMO. “So we’re expecting an exciting event, offering exceptional added value to everyone involved.”
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