Make In India

 Make In India

 

What is Make In India?

The Make In India campaign was launched by Prime Minister Narendra Modi with a vision and mission to achieve high growth, attract businesses from around the world to invest and manufacture in India and make India a global hub for the manufacturing of goods ranging from cars to software, satellites to submarines, paper to power and a lot more.

 

Tapping the Indian Potential

The aim of this campaign was to increase the contribution of manufacturing sector from the then 16% of GDP to 25%.

India achieved the milestone of being one of the fastest growing economies of the world right from the launch of the campaign as it has a favourable demographic dividend which will only continue to grow in the next few decades and because of affordability of manpower.

India houses strong, responsible and innovative businesses operating with various levels of credibility and professionalism. They have contributed a lot to the development of the economy.

India also has a strong consumer market which is expected to expand in the coming years. The strong technical and engineering capabilities backed by top-notch institutes will further boost the possibility of success of this campaign.

 

Manufacturing Sector: India Vs China

India is also expected to give a tough fight to China, which has a more developed and widespread manufacturing sector.

The increasing labour cost of China is increasing, and the subsequent increase in cost of goods produced there will open the way for India to enhance its manufacturing capabilities with its low-cost labour and cheap goods. China may even lose its dominant position as the 'Factory of the world' in the near future because of the diluting quality of its goods.

Former RBI Governor Raghuram Rajan made a statement that the world cannot accommodate two Chinas but it also cannot stop India from becoming a successful exporter.

Although India exports less than 2% of the world’s merchandise, far below than China’s 12%, it has a considerable advantage owing to its massive labour force and lower wages. It is estimated that India, in the next 4 years, can snag 2% of the exports from China in the global trade. That alone will be a huge success of the Make In India campaign.

Till 1978, China had been a closed-door economy and way behind India but it marched on the path of steep economic growth after opening its doors to the global market.

Similarly, the Indian Economy had been on the path of consistent growth since liberalisation but it couldn’t take full advantage of globalisation because of its weak manufacturing sector and majorly exporting raw materials instead of finished goods.

Although it make take time to surpass China’s exports and break its hold on the world market, Make In India, by attracting foreign investors to set up units in the country, manufacture here and then export to the rest of the world will speed up the process considerably from before.

 

Make In India depends on Ease of Business

With abundance of natural resources, India is the 3^rd largest growing economy of the world.

The export-led manufacturing sector will benefit from the campaign and create more job opportunities for both the skilled and the unskilled.

Concerns remain in the form of poor infrastructure, roads and electricity which could deter foreign investors. India should focus more on development of energy resources and infrastructure. Investment should be focused in these sectors to enhance the ease of doing business for global and national firms. The necessity is also to do away with unnecessary red-tapism, operational glitches and bureaucracy and to promote a simplified, flexible procedure.

If continued on the right track with a transparent system, Make In India has a sound objective and a great possibility of reaping economic benefits.