Make in India campaign commenced a day after India’s manufactured satellite Mangalyaan was successfully put in the Martian orbit, showing the world the processes, technology, science and innovation. On the day of launch Indian prime minister said “over the decades, the trust and confidence in government and policymaker’s have been lost and need to be regained” this shows his commitment towards making India a manufacturing hub.
Currently manufacturing contributes 15% of national GDP and the aim of this campaign is to grow this to 25% by 2022. Indian government is trying to make India a manufacturing hub by encouraging FDI, which can create employment opportunities, aiming to create 100million jobs by 2022. Its focus on Skill India, Startup India and Digital India may boost the “Make in India” campaign; they in fact can be termed as branches of same tree named Make in India.
How will Make in India succeed?
There were lots of doubts in the minds of economists and other industrial experts that whether India can compete with China in the manufacturing sector. China is the biggest competitor of India amongst all the other nations. But considering present situations, with the labor costs in China increasing, bank interest rates have also increased, the Government of China has been trying to push industries which are in the coastal line to the inside areas. In other words China wants to get rid of its “zombie factories”. And the manufacturing units are looking for a substitute country, like India. This is an opportunity for India and one such example is the factory that has been set up by FoxConn in India.
World is looking to invest in Asia, places with high demand, and this may be a very positive opportunity for India to attract investments.
What is the excitement with respect to FDI?
While talking about Foreign Direct Investments, on an average every developing country has contribution of F.D.I at 30%of G.D.P where as in India we have F.D.I only 12%of G.D.P, it is said that each 1% increase in F.D.I adds 0.4% of a country G.D.P growth.
There are many opportunities in India especially with its 65% of population which is less than 35years age, and a huge market with skilled work force. Talking about the Infrastructure, licenses, ease of doing business, etc. we are making steady inroads in all these aspects. Indian government is showing the whole world that India is the best place for investment and a Red carpet for foreign investors has been laid down. Single window clearance system has been put in place by FIPB (Foreign Investment Promotion Board) which lead India to jump by 12 places in Ease of doing business, from 142nd position to 130th.
Other requirements for success of Make in India:
Land acquisition bill and GST bill play a prominent role for India in attracting Investments from foreign players. The basic major cost of business is towards land, labor and raw materials. There is a need for Indian government to pass the above mentioned bills, as also increase the number of Special Economic Zones within our country. In India we have often witnessed lack of cooperation and synchronization between the central and state governments, primarily because of multiparty system. They have to be brought together to ensure success of the Make in India campaign.
As a citizen of this country, I really do wish this campaign succeeds and creates the benefits we expect from it.
INBM, Batch July 2015