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    Make in India

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    Make in India is an initiative launched by Prime Minister Modi to transform India into a global manufacturing hub. It aims to increase the manufacturing sector's contribution to India's GDP and create jobs for the millions expected to join the workforce in the coming decades. The key advantages include faster economic growth, increased employment, improved trade balance, and greater foreign investment bringing new skills and technologies. However, there are also challenges such as not having China's time advantage, focusing too much on exports could hurt imports, and the global economic environment remains uncertain. For Make in India to succeed, issues like improving ease of business, environmental clearances, land acquisition and developing workforce skills must be addressed.

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    Make in India

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    ßläcklìsètèdTȜè
    61 views2 pages
    Make in India is an initiative launched by Prime Minister Modi to transform India into a global manufacturing hub. It aims to increase the manufacturing sector's contribution to India's GDP and create jobs for the millions expected to join the workforce in the coming decades. The key advantages include faster economic growth, increased employment, improved trade balance, and greater foreign investment bringing new skills and technologies. However, there are also challenges such as not having China's time advantage, focusing too much on exports could hurt imports, and the global economic environment remains uncertain. For Make in India to succeed, issues like improving ease of business, environmental clearances, land acquisition and developing workforce skills must be addressed.

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    advantages and disadvatages of make in india

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    Make in India is an initiative launched by Prime Minister Modi to transform India into a global manufacturing hub. It aims to increase the manufacturing sector's contribution to India's GDP and create jobs for the millions expected to join the workforce in the coming decades. The key advantages include faster economic growth, increased employment, improved trade balance, and greater foreign investment bringing new skills and technologies. However, there are also challenges such as not having China's time advantage, focusing too much on exports could hurt imports, and the global economic environment remains uncertain. For Make in India to succeed, issues like improving ease of business, environmental clearances, land acquisition and developing workforce skills must be addressed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    61 views2 pages

    Make in India

    Uploaded by

    ßläcklìsètèdTȜè
    Make in India is an initiative launched by Prime Minister Modi to transform India into a global manufacturing hub. It aims to increase the manufacturing sector's contribution to India's GDP and create jobs for the millions expected to join the workforce in the coming decades. The key advantages include faster economic growth, increased employment, improved trade balance, and greater foreign investment bringing new skills and technologies. However, there are also challenges such as not having China's time advantage, focusing too much on exports could hurt imports, and the global economic environment remains uncertain. For Make in India to succeed, issues like improving ease of business, environmental clearances, land acquisition and developing workforce skills must be addressed.

    Copyright:

    © All Rights Reserved
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    of 2

    What are the advantages and disadvantages

    of Make In India?
    Some would extol the virtues of the manufacturing juggernaut. On the other hand, some
    would denigrate it to- "old wine in new bottle". Some others would term it as a stellar
    marketing and political gimmick. Let us undertake an unbiased and a threadbare analysis of
    Prime Minister Narendra Modi's pet project - Make in India.
    Backdrop
    Make in India is intended to make India a manufacturing hub of the world (atleast Asia, for
    that matter). The idea was to increase the contribution of the manufacturing sector to India's
    GDP.
    To accommodate the 300 million people who will join India's workforce between 2010 and
    2040, each year 10 million jobs are needed. The thrust on the manufacturing sector will
    create about 100 million jobs by 2022.
    Advantages
    1. Manufacturing sector led growth of nominal and per capita gdp. While India ranks 7th in
    terms of nominal GDP, it ranks a dismal 131st in terms of per capita GDP.
    2. Employment will increase manifold. This will augment the purchasing power of the
    common Indian, mitigate poverty and expand the consumer base for companies. Besides, it
    will help in reducing brain drain.
    3. Export-oriented growth model will improve India's Balance of Payments and help in
    accumulating foreign exchange reserves (which is very important given the volatility in the
    global economy with multiple rounds of Quantitative Easing announced by major
    economies).
    4. Foreign investment will bring technical expertise and creative skills along with foreign
    capital. The concomitant credit rating upgrade will further woo investors.
    5. FIIs play a dominant role (relative to FDI) in the Indian markets. However, FIIs are highly
    volatile in nature and a sudden exodus of hot money from India can effect a nosedive in the
    bellwether indices. Make in India will give an unprecedented boost to FDI flows, bringing
    India back to the global investment radar.
    6. The urge to attract investors will actuate substantial policies towards improving the Ease of
    Doing Business in India. The Government of the day will have to keep its house in order (by
    undertaking groundbreaking economic, political and social reforms) to market Brand India to
    the world at large.
    Disadvantages
    1. From a theoretical perspective, Make in India will tend to violate the theory of comparative

    advantage. If it is not economically feasible to manufacture a commodity in India, it is best to


    import the same from a country which enjoys comparative advantage in its production.
    International trade, after all, is welfare augmenting.
    2. Reiterating the point made by Dr. Raghuram Rajan, India, unlike China, does not have the
    time advantage as it undertakes a manufacturing spree. The essential question is - Is the world
    ready for a second China?
    3. Make in India will lead to an unsustainable focus on export promotion measures. One such
    measure is artificially undervaluing the rupee. This will have devastating consequences for
    the import bill.
    4. A relative neglect of the world economic scenario may not augur well for Make in India.
    With the US and Japan economies yet to recover from their economic crises and with the EU
    floundering, one needs to be wary about the demand side of Make in India. The clairvoyance
    of the incumbent RBI governor to Make for India should be put to good use.
    Caveats
    As stated by the Commerce Minister, Nirmala Sitharaman"Make in India is not a slogan but a mission to be accomplished by a single-minded
    committment about new processes."
    The following major challenges for Make in India need to be addressed immediately:
    1. Restore broken trust between industry and government.
    2. Environmental clearance has been a contentious issue for many projects. Land acquisition
    for industries is a pre-requisite, thus bringing the eternal debate of development vs
    displacement.
    3. Skilled labour force is mandatory and it requires huge monetary support. Unlike in Korea,
    Japan and Germany which have about 80% of its population skilled, only 12% of India's
    population is skilled.
    Conclusion
    Make in India is an ambitious project, but it is one that India desperately needs to kickstart
    and sustain its growth momentum. With relentless policies towards this end, it is possible to
    make India the powerhouse of manufacturing sector in the world.

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