REASONS WHY MAKE IN INDIA CAMPAIGN IS IMPORTANT

Prime Minister Narendra Modi’s ‘Make in India’ initiative, to my mind, has been one in all the foremost significant, structured, and outcome-oriented policy initiatives by any Indian government in recent years. In his first national holiday speech on August 15, 2014, Modi said, “I want to inform the people of the full world: Come, make in India. Come and manufacture in India. We've got skill, talent, discipline, and also the desire to try and do something. we would like to present the planet a chance that comes to India.” 

1. The timing was near perfect. 

The Chinese growth engine had started slowing. Besides, new trade-related tensions between the world’s two biggest economies — the US and China — were giving jitters to investors worldwide. They were searching for a secure hedge bet against potential turmoil in their key manufacturing base, China. And Prime Minister Narendra Modi, with a robust, pro-business image, had just burst on the scene, talking the talk that investors like to hear, and what’s more having absolutely the electoral mandate to enable him to run the talk moreover, without the numerous pressures of ‘coalition dharma’ which his predecessor had to face.

 2. The ‘Make in India’ initiative

When it took off, I had ticked all the proper boxes. The policy promised to clear the procedure that shrouded any potential inbound investor, create the world-class infrastructure required by the modern manufacturing industry, and convey in policies that helped foster a climate of innovation and, importantly, protect the belongings that resulted from such innovation, something that global investors had little faith in as far as China was concerned. So, we had a thought, it had been workable and it absolutely was well-timed. Investors, should, logically, are beating a path to India to line up mega manufacturing plants to produce the planet. But has the ‘Make in India’ program achieved what it kicked off to do?

 3. FDI terms

Five years down the road, the image may be a bit muddled. True, in FDI terms, India is among the world’s top destinations, garnering inflows of $49 billion in calendar 2019, in line with UNCTAD. India now accounts for 85 percent of all FDI coming into South Asia (but then our competitors within the region are Bangladesh, Nepal, Pakistan, Democratic Socialist Republic of Sri Lanka, and Afghanistan!). But FDI statistics include inflows into the capital markets, which still account for the lion’s share of capital flows. Statistics on specific, manufacturing sector FDI flows are a touch harder to return by. Manufacturing FDI was around $8 billion in 2018-19, accounting for fewer than 1 / 4 of the entire inflows. 

4. Work in progress

Work in progress But judging from the yardstick of what it kicked off to realize, ‘Make in India’ is at the best still a piece ongoing. The key stated outcomes were to extend the share of the manufacturing sector to 25 percent of GDP and to make 100 million additional jobs within the manufacturing sector by 2022. Clearly, both haven't happened and going by the increasingly gloomy predictions for GDP growth, unlikely to happen by the target year.

CONCLUSION 

The final factor is securing staple and inputs for your domestic business. That's why Adani and Tata have bought mineral and coal mines abroad and why ONGC is making investments in oil and gas resources. We need to confirm that the identical factors apply in reverse additionally. We've got to form market access tougher via a pure trade route; we want to make sure that Indian innovation attracts global investment (it’s already happening within the start-up space); we want to confirm that our talent does n't migrate abroad but is headhunted reception; and that we have to make sure that our precious natural resources are value-added at home.

Reference :

BusinessLine

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