Business Standard newspaper carried an article about Indian manufacturers success which is relying on mainly imported devices. India is the second largest market for mobile phones. Social media in India will explode in the coming years. Compared to China, sites like Tweeter and Facebook have taken a strong foothold in India. Recently, a worldwide poll done by Time magazine had Indian politicians beating the global celebrities. With high social density, India will be a very interesting market for smartphones.

The other article carried in today’s newspaper is that “90% of telecom gears in India’s Rs 50,000 crores (close to $8 billion ) market are imported“. With such a large exploding market, one may think that Indian companies will invest aggressively in innovation and large capital intensive manufacturing. But once again, they rely on short term trader mentality.

For the last 60 years, Indian manufacturers have relied on foreign technical know-how by official collaboration or by just simply copying. For buying imported equipment, they would ask for a “buy back”  agreement.  They were prepared to buy equipment if the supplying company is prepared to buy back their production.

Several years back, I participated in a manufacturing show in Chicago where I was offering fiberglass processing equipment. An Indian manufacturer approached me to look at the equipment as they were wanting to manufacture fiberglass boats. They offered to buy the equipment from us if we were willing to buy back the boats which they will manufacture in India for the US market!!

Well, this was 15 years back. Now the reality is quite different. India offers a large market and consumers have disposable income and the desire to buy quality products. Indian manufacturers should target the US as a market to establish quality, customer service and offer the products in India. They should start respecting the ndian consumers who made them a large company.  They  should use innovation and India’s large market to manufacture global products and export instead of import. They should be role models of a proud global India, inspiring a new breed of entrepreneurs. They should for once, think outside the money box.