MAKE IN INDIA
May 26th 2014, undoubtedly left one of the most interesting mark on history when Narendra Modi who steered the BJP-led NDA to a stunning victory sworn in as the 15th Prime Minister of the country.
The central government was back in action after a long time and swarmed the economy with various policies.
One such initiative is ‘Make in India'. This most appreciated as well as criticised policy of the government was launched globally in September 2014 as a part of the Government of India’s renewed focus on invigorating the country’s manufacturing sector.
The primary goal of the project was to make India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country with a view to raise the contribution of the manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025.
The logo of ‘Make in India’, a lion made of gear wheels, reflects the integral role of manufacturing in government’s vision and national development.
The initiative targets 25 sectors of the economy which ranges from automobile to Information Technology (IT) and Business Process Management (BPM).
Since the launch of the project there has been an increase of about 44℅ in FDI Equity inflows marking a milestone of success in the path of the initiative.
‘Zero defect zero effect’ has become a key phrase to be associated with the Make in India campaign. In the words of our Prime Minister Narendra Modi, it means “Let’s think about making our product which has 'zero defect' and 'zero effect' so that the manufacturing does not have an adverse effect on our environment".
Providing the strongest critique to the government’s Make in India strategy, former governor of the Reserve Bank of India, Raghuram Rajan said India rather needs to make for India, as an incentive-driven, export-led growth or import-substitution strategy may not work for the country in the current global economic scenario.
The former governor said the government should rather focus on creating an environment where all sorts of enterprise can flourish, and then leaving entrepreneurs to choose what they want to do. He added, “Instead of subsidizing inputs to specific industries because they are deemed important or labour-intensive, a strategy that has not really paid off for us over the years, let us figure out the public goods each sector needs, and strive to provide them.”
Former prime minister Manmohan Singh also said India can achieve a growth rate of 8-9% provided there is a “national consensus” on methods to take advantage of globalized world.
He said, “I think that even though many other emerging economies are not doing too well, India has an opportunity to move towards a growth rate of 6-7% and thereafter to 8%.”
Make in India campaign has now become a calling card for investors to come and invest in the Indian growth story. To enhance the manufacturing capabilities of the country, the government is focusing on the development of sectors that are going to be the key focus in the coming years. By introduction of new reforms in policies along with a positive economic atmosphere, it has created a fertile ground for businesses to thrive in India.
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