Why 'quality' should matter for Make in India campaign

As India gallops with rest of the economies, a rigorous system of standards, replete with robust mechanisms for implementation and enforcement, is crucial for sustained growth, says Suresh Sugavanam

As the current Indian Government celebrates its second year, the cynosure of its numerous programs is the ‘Make in India’ campaign. Launched soon after the Prime Minister’s cabinet taking office, the heavily propagated movement seeks to make India a global industrial hub. 

While the campaign’s lofty vision is yet to materialise in its entirety, the country is witnessing a spate of positive changes in the economy, catalysing a much needed impetus to invigorate the industrial sector. For instance, a recent World Bank report pegs India to be the fastest growing economy in the world in the next three years, outpacing our neighbour country. McKinsey & Co highlights an upswing in India’s manufacturing sector, which is poised to touch $ 1 trillion by 2025 and potentially account for 25-30 percent of the country’s GDP, creating as many as 90 million jobs along the way. 

Growth Expectations from GDP

Although these reports are an endorsement to how successful the campaign can become, it is important to reflect on the critical differentiator that would spur Make in India into a global phenomenon, apart from the cost arbitrage due to cheap labour and industry-friendly regulation. The answer lies in ‘Quality of Goods Produced’. In order to match international quality standards, the industry, along with the government and regulatory bodies should migrate to a zero-tolerance environment for substandard goods. 

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So where is India going wrong and how can industry take charge for a successful ‘Make in India’ and in turn, a sustained economic growth?

Zero Defect Zero Effect: The need of the hour

Make in India/Make for World is a rousing call for the manufacturing sector to up the ante and build products that meet or even surpass global standards. This can work only through consistency in quality, which can be achieved through an ideal ‘Zero Defect Zero Effect’ situation. When a manufacturer produces a good which is later sold to a consumer, what the consumer looks for is ‘Zero Defect’- ie, you deliver what is promised. However, along with this idea of Zero Defect, the manufacturer’s intention should be to ensure that the use of a quality product by a bonafide buyer should not affect society at a large. That is where the idea of ‘Zero Effect’ comes into play. We, as a society, owe a lot to the environment around us and the environment, should not, in any way, be affected by the products produced.

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Given a stable regulatory framework, what differentiates world-class companies from others is technology, innovation and most importantly, consistently delivered quality of goods that can pass the toughest and strictest regulatory regimes. The stated vision of Zero Defect Zero Effect is therefore a much needed aspirational point for manufacturers in India to get to. It presents a model where the concept of quality has a holistic change - from a tool for compliance to a source of competitiveness. Operationally, it is meant to evolve from a total dependency on inspection of the final product and correct defects, to a proactive process of continuous improvement in quality planning, product and process designing, getting manufacturing ‘first time right’, and efficient resource management. Zero Defect Zero Effect is particularly crucial to revitalise the competitiveness of MSME sector, the backbone of the industrial economy.  

A well implemented standards program

Suresh Sugavanam, VP and MD, UL South Asia

India has historically struggled to develop a holistic system of standards. This, combined with a  deficiency in strict program implementation or a law enforcement follow through, has left our manufacturing sector weak - especially from an exports standpoint.

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Take for instance, the medical devices sector, which is seeing impeded growth largely due to the absence of an appropriate regulatory system. Currently, there are only 22 medical device categories (out of over 10,000 types of medical devices sold in the country) notified by the Government that require mandatory safety and efficacy checks. The lack of a regulation appropriate for medical devices is a stumbling block for MedTech companies to design, develop, and launch a quality product in India. The new medical devices regulatory framework currently under development with the Ministry of Health and Family Welfare is the right step for creating a level playing field for all types of MedTech manufacturers in the country.

Another case in point is the burgeoning growth of renewable energy. The stellar success of India’s sunrise sector is not without hiccups. Despite India’s achievements in the solar space, quality control is a nagging issue. The need for separate panels to overlook testing and quality control by the Ministry of New and Renewable Energy would be a welcome step in this direction. This is all the more needed to protect consumers using roof top PV solar systems. 

‘Quality first’ matters 

Make in India is an ambitious program that is relevant for India now and in the years to come - to generate employment, to increase our manufacturing and industrial output and to put India on a sustained economic growth path (to grow beyond 8 percent) in the years to come. A necessary step to enable Make in India is a well implemented standards program that starts to move the discussion from mandatory compliance (and from complaince for compliance sake) to leveraging quality and standards as a lever for competitiveness – towards a Zero Defect Zero Effect mindset.
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Suresh Sugavanam is the vice president and managing director for UL South Asia (India, Bangladesh and Sri Lanka)