Question: The need for cooperation among various sector has been an inherent component of development discourse. Partnership bridges bring the gap among the sectors. It also sets in motion a culture of ‘Collaboration’ and ‘team spirit’. In the light of statements above examine India’s Development process.
Answer: Indian developmental process was a unique successful combination of both public as well as private sectors. The multi-sectorial approach allowed development to reach every aspect of economy. This collaboration is indeed one of the reason for success.
Factors responsible for India’s development
- Technology transfer
As new trend emerges, industries have to upgrade their techniques and methods. With new technological solutions, the process of production became faster and efficient. The technology adopted from foreign sources was able to penetrate into domestic firms too, leading to rapid development.
Ex: Li-Ion battery developed by ISRO will be open for industrial usage through technological transfer. This will allow development of electrical cars.
- Understanding between various industries
For economy to gallop freely, there should not be any roadblocks in buying and selling. By having understanding between various industries, credit and monetary markets functioned effortlessly. This allowed faster production and marketing.
Ex: Understanding between iron ore extraction industry and steel manufacturing industries allowed faster transfer of input without waiting for payments.
- Collaborative approach
Indian industries needed financial and technical assistance to prosper during economic revolution. This was provided by foreign firms that provided both technology transfer as well as financial backing.
Ex: Collaboration between Maruti-Suzuki, Hero- Honda etc were responsible for upgrading their product and revolutionizing manufacturing.
- Presence of healthy competition
The industry must function as a competing unit rather than a cartel. This will allow improvement in product and also create demand in market for product.
Ex: Presence of competition between mobile manufacturers has reduced prices drastically while improving demand and quality drastically.
- Seamless upgradation
To industry to last long it must be able to adapt quickly to changing environment. This will ensure that the industry will not suffer from technical lag, which can impact its growth.
Ex: Amul was able to diversify its products by adopting new methods of conservation and manufacturing of milk products. This ensured that it did not suffer from emerging competition.
Removing bottlenecks that hamper multi sectorial cooperation between various industries so that development process reaches every corner of economy.
Thus, collaboration as well as partnerships were key in making Indian development process a success. The economic condition we observe today have been a product of long lasting bond and co operation between multiple- sectors.