India Can’t Be A Manufacturing Hub Without Women On The Shop Floor

Post Covid, prominent economies are trying to reduce their dependence on China in manufacturing sector. India has embarked on a path to be a manufacturing hub of the world through programmes like ‘Make in India’ and PLI (production-linked incentive) schemes among others.

However, the number of women entrepreneurs in the Indian manufacturing space remains far and few. Similarly, participation of women workforce is not very encouraging. In a conversation with the Bizz Buzz, Uma Reddy, Founder of Hitech Magnetics & Electronics & Senior Vice-President of FKCCI (Federation of Karnataka Chambers of Commerce& Industry) said that respective state governments and central government will have to come up with special schemes to encourage women entrepreneurs in the manufacturing sector.

She said that capital subsidy, special women-specific grants and other promotional schemes should be designed to encourage women entrepreneurs. Moreover, women participation in the manufacturing sector should be encouraged at all level, she added.

India is aspiring to be a manufacturing hub of the world. Both central and various state governments have come up with various incentive schemes to promote manufacturing across sectors. However, participation of entrepreneurs remains low. What are the steps that should be taken up by the government to promote entrepreneurship in the manufacturing sector, especially of women entrepreneurs?

I have always advocated more participation of women entrepreneurs in the manufacturing sector. As a first generation women entrepreneur in this space, I have time and again talked about the challenges faced by women in this sector. Access to finance, access to information, motivation to do something and related aspects should be taken care for promoting entrepreneurship in the manufacturing sector. In the present time, access to information is one click away in an internet age. To finance, there are so many banks, several schemes and so many angel investors. Yet, the number of women entrepreneurs who want to take that risk of starting the business, is far low.

Yes, women want to be in jobs to first earn that initial capital. Then, the next step is to get out of that career and start something, they are passionate about. But women entrepreneurs in manufacturing are far and few for several reasons. Firstly, it is shop floor work. You have to make your hands dirty. It is not a job where you only sit in front of a computer or in an office. There are so much shop floor activity. I think, a study should be done about why women entrepreneurs are not coming to manufacturing space.

One critical factor for entering into manufacturing is the passion. Another thing women entrepreneurs should remember that they can’t break away from it very easily. In services business like software services, it is easy to manage. The entrepreneur can take the help of others to take over if she wants to take a break. But in manufacturing, you can’t take a break. You always have to on your toes to understand what next.

Do you think, high capital requirement is another factor for low participation of women entrepreneurs in manufacturing sector?

Manufacturing requires high investment. When technology changes, all the investment in plant and machinery can be jeopardised. So, the entrepreneur has to be ready for coping with such situation. Obviously, the risk factor is high in manufacturing business. The time taken for manufacturing business is high; risk is high and capital requirement is also high.

You were earlier part of National Manufacturing Competitiveness Council (formed during Manmohan Singh government). What was your experience? Can you share some of the insights that will inspire next generation of women entrepreneurs?

I was part of NMCC where in industry stalwarts like Ratan Tata, YC Deveshwar and many eminent personalities were part of the council. I was the only women in the 20-member council. I learned a lot and it was a great honour to be part of such council. About attracting more women in manufacturing sector, we first need more role models. We should share more success stories of women entrepreneur in the sector. That will inspire our next generation young women to start manufacturing ventures. We don’t have personalities like Kiran Mazumdar-Shaw, who inspire many people. Of course, women wear many hats. We have to take care of parents, children, other family members. The social commitment of women is usually very high. That is the reason that women have to find time for pursuing her passion. However, things are changing very fast.

The next generation is more willing to take risk as burden of such social responsibilities is reducing. But to pursue their dreams in manufacturing, they need to see many success stories in the sector. Now, several state governments, and central government are focussing on manufacturing. That was not the case earlier. The boom in the service sector, especially in the IT services sector, led to neglect of manufacturing sector. We used to plead with governments that this sector can generate many jobs both in the skilled and unskilled labour spaces. Even person, who has studies till 8th standard or 10th standard, can get employed in the manufacturing industry, which may not be the case in IT industry. It was long neglected by governments across the country. But now the awareness is coming about the importance of the sector. Though there are many successful women in the manufacturing industry, most of them come from family-run businesses. They are very few who have turned into entrepreneurship from being a technocrat.

What measures that the government should take now to promote women entrepreneur in the manufacturing sector? Do you think, PLI (Production-linked Incentive) schemes solve the problem for the sector?

PLI schemes are good for promoting manufacturing in the country. But most of the benefits usually go to the large corporates. Currently, there is no preferential procurement policy for women entrepreneurs in the manufacturing sector. There is no special incentive given to women for starting a manufacturing venture. There is no special tax incentive given to women entrepreneur, operating in this sector. If the government wants to promote women entrepreneur in the manufacturing sector, then provisions like capital subsidy, grants, and other such incentives should be given.

However, there are many things that have come up in recent years, which will support the new generation entrepreneurs. Now, there are incubation centres, testing facilities, and common labs. So, I am optimistic that business ventures in the manufacturing sector will go up. As more entrepreneurial success stories crop up, many women will be interested in entering the sector.

For making India a manufacturing hub in the world, women participation has to be increased. And for that to happen, all those incentives have to be provided to attract more women entrepreneurs. We need special care in terms of facilities to encourage more women workforce to be part of manufacturing facilities.