The date was 25th September 2014, speaking in front of various dignitaries at Vigyan Bhavan, PM Narendra Modi said,” I tell the world, ‘Make in India’ Sell anywhere but manufacture here. We have the skill and talent for it”. The sentence was regarding a very ambitious campaign called “Make In India.” As the name suggests, the PM urged manufacturers and entrepreneurs all over the world to make their products in India, promising job creation in the country and best quality products for the companies. Mentioned first on 15th August by the PM himself, the campaign was launched ahead of his US visit.
But, there is more than what meets the eye about this topic. Following are the issues most associated and debated about the policy most important to the ruling government.
By 2014, the economic environment in India was pathetic. Employment, corruption, inflation, etc. were the hot topics being debated. It’s not that India was the only nation, the whole world has been struggling with the same issues, but the situation in India was quite adverse. In fact, India was one of the “Fragile Five” nations whose future looked bleak.
A campaign like this would require immense hard work, planning and constant support from everywhere. But being ranked low in ease of doing business index isn’t flattering, also being a neighbor to China which is the manufacturing hub of the world makes the matter very competitive. Demonetisation after a couple of months had a debatable effect on the economy which wasn’t thriving already. The case of corruption, lack of proper utilities like transport will not motivate companies to invest.
The manufacturing sector, considered to be the prime beneficiary of the campaign has had a small yet positive effect, contributing 7.6% to the GDP. Various other sectors, namely construction and IT have been consistent but not very impressive. The FDI has increased 40% in just one year. Many companies have begun manufacturing in India. All these may show good results, but this initiative will take it’s time to show both advantages and disadvantages. Any premature and quick assessment is unnecessary.
The then RBI governor Raghuram Rajan had himself made it clear of not being excited about Make In India, the reason being the economy to be wary of the competition from China and keeping an eye on the struggling economies elsewhere also. Some people have rubbished its success while others say the campaign is still under construction and will bring growth. The Finance Minister is optimistic about Make In India. As of now, many companies are still left to be impressed by the campaign.
Highlights of the Program
- Policy is geared towards providing much-needed help to the 25 sectors it has shortlisted
- Wieden & Kennedy (famous for launching the brand Nike), a leading marketing firm had designed & launched the campaign
- Directed towards a greater influx of FDI while providing domestic companies assistance in making quality products
- The strategy is to build a better employment environment by manufacture better products, which will also garner demand for employment
- Invest foreign currency in the Indian industry market
- Increase demand for skilled workers with proper training to meet the requirement
- In roughly two years, the ease of doing business in India has improved significantly and this program intends to improve it further
- Its believed that industrial sector will flourish on the basis of this policy alone
- Indistinct idea of the ratio of FDI in defense and railways is now clear, with the nation now reaping its benefits with both the sectors improving
Twenty-Five Sectors Focused In Make in India Scheme
- Automobile components
- Defense manufacturing
- Electrical machinery
- Electronic systems
- Entertainment and media
- Food processing
- Garment and textile industry
- IT & business process management.
- Oil & gas
- Renewable energy
- Roads & highways
- Shipping and ports
- Space and astronomy
- Thermal power
- Tourism and hospitality
Make In India can be the Industrial Revolution the nation needs. It will also help in becoming a big shot like US and UK, and finally, bring the positive impact the country requires. Currently, it contributes nearly 45% to the GDP. But the initiative is not just about numbers; it’s about balancing the economy, revolutionizing the various sectors of the nation and live up to the hype it is constantly surrounded by. But with numerous reforms like demonitisation and GST being introduced in a short period, the campaign needs enough time and never ending help from all corners (investment, transparent government, advertisement) to be the massive success it deserves.