Zoho cofounder and chief scientist Sridhar Vembu has supported the opinion of Patrick Collison, CEO of Stripe, that a country needs to strengthen its manufacturing base across sectors if it wants to maintain sovereignty and leadership in critical areas. While Collison made the point in the context of the US, Vembu criticised economists who downplay the importance of manufacturing, saying, “Listening to academic economists in these matters is harmful for national wealth and well-being.”
Vembu criticizes economists for undermining manufacturing
“America won all the economics Nobel Prizes while destroying American manufacturing. Why should we listen to them in India?” he asked.
The comments come at a time when India is facing steep tariffs from the US on its exports and has also recently encountered restrictions from China on rare earth supplies. The White House has also increased the H-1B visa fee for the new petitions, requiring a $100,000 payment. The H-1B visa is a non-immigrant work permit that allows US companies to hire foreign professionals.
Drones to pharma: Collison ties US strength to manufacturing
Collison, in his tweet, highlights that many economists argue that manufacturing is outdated. They see America’s shift away from factories as natural and even beneficial. According to them, unpleasant factory jobs are better suited for other countries, while the US should focus on its comparative advantages in technology, finance, and services. However, Collison said, “My guess is that if the US seeks meaningful sovereignty or preeminence in any of drones, robotics, solar, batteries, pharma, etc., we need to bite the bullet and win at manufacturing across the board.”
PM Modi pushes Made in India to boost manufacturing
India, however, is trying to boost Make in India across different sectors. In his address to the nation on September 21, Prime Minister Narendra Modi highlighted the need to adopt Swadeshi and Made-in-India products to strengthen manufacturing. “We should buy goods that are Made in India, in which the hard work of our youth, the sweat of our sons and daughters are involved. We have to make every home a symbol of Swadeshi.”
He further urged state governments to step up manufacturing efforts: “Today, I also urge all state governments to accelerate manufacturing in their states with this campaign of self-reliant India, this campaign of Swadeshi, and to join with full energy and enthusiasm. Enhance the environment for investment. When the Centre and states move forward together, the dream of a self-reliant India will be fulfilled. Every state in India will develop, and India will develop.”
Vembu backs Collison, says manufacturing tied to sovereignty and security
Vembu endorsed Collison’s argument and extended it to India’s case. “This is exactly true for India as well. Our national sovereignty and national security, not to mention our prosperity, all depend on us having a broad and deep manufacturing ecosystem. Advanced manufacturing touches every area of science and technology,” he said.
Manufacturing seen as key to decent livelihoods
He stressed that India’s demographic reality makes manufacturing even more urgent. “Given the 23 million babies born per year in India vs 9 million in China and 3.6 million in America, it is vital that India invest in every sector, if we want to create a decent life for all our people,” Vembu said.
Small nations can rely on trade, but India needs scale:Vembu
According to him, smaller countries can rely on trade to grow, but India’s scale demands that it must both invent and make. “Given our sheer size, we cannot assume we can trade our way to prosperity, as small nations can do. We have to make and invent our way to prosperity,” he said.