B2B can power ‘Make in India’
In September 2014, the Government of India launched the ‘Make in India’ campaign. The initiative was taken to encourage multi-nationals and domestic companies to manufacture their products in India. As the campaign describes, the initiative will definitely boost sales in the manufacturing sector and B2B sector.
The program by the Indian government will promote local manufacturing and attract foreign investment. The initiative seeks to converge and integrate with the Digital India campaign. These two are definitely engines of growth for the economy. The program will build India as the manufacturing and export hub of the world.
In India, the manufacturing sector accounts for 16% of the GDP. It is relatively low compared to other emerging countries such as Brazil, China and Indonesia. The three pillars of the make in India initiative are technology, product development and skilled labour. With foreign investors investing in India, other ancillary industries such as logistics, packaging and vendor and inventory management will also flourish.
Many analysts believe that B2B e-commerce can be one of the critical enablers for the ‘Make in India’ initiative. Manufacturers and small and medium enterprises in tier-2 and tier-3 cities should use their distribution and supply chain of e-commerce to access the domestic and global markets.
Foreign investment is the key component to drive the ‘Make in India’ program. Currently, the business-to-business (B2B) and the marketplace e-commerce models are completely liberalized, allowing the industry to attract both domestic and foreign funds.
The three benefits of the ‘Make in India’ campaign to the B2B sector is as follows:
- Increase in manufacturing and export: The export in the country is picking up and is giving a slight push to the economy. Global investment will transform India into a global manufacturing hub with the use of latest technology.
- Generation of more jobs: Increased investment will create more jobs for skilled labour force. This will create a job market of over 1 crore. The Government of India has also started a skill development program, which will generate more skilled manpower.
- Attract more FDI: The government promises to enhance the ease of doing business in India. With this, the government will attract more foreign direct investment.
The globalization of India will generate a need for global B2B marketing for every business to generate global leads. Today, global B2B marketing has become a powerful way to grow your brand and develop new overseas market.
Therefore, B2B is the backbone of the ‘Make in India’ initiative and a successful Make in India initiative can boost sales in the B2B sector.