Mithilesh Ku­mar Sinha | Pro­fes­sor Of Eco­nomics, De­part­ment Of Eco­nomics, Na­ga­land Univer­sity, Lu­mami, E-mail: Mithileshku­

Economic Challenger - - MAKE IN INDIA -


On Au­gust 15, 2014, at the Red Fort in the cap­i­tal, Prime Min­is­ter Naren­dra Modi ad­dressed the na­tion, and the world, in his maiden In­de­pen­dence Day speech; “Come, make in In­dia” he said, “Come, make in In­dia; come, man­u­fac­ture in In­dia, sell in any coun­try of the world but man­u­fac­ture here. We have got skill, tal­ent, dis­ci­pline and de­ter­mi­na­tion to do some­thing”. We will say to the world, from elec­tri­cal to elec­tron­ics, “Come, Make in In­dia”; from au­to­mo­biles to agro value ad­di­tion, “Come, Make in In­dia”; pa­per or plas­tic, “Come, Make in In­dia”; satel­lite or sub­ma­rine “Come, Make in In­dia”.

The fact that In­dia is a pop­u­lous coun­try where the cost of labour is low and the ca­pa­bil­ity of pro­duc­ing qual­ity prod­ucts is high. In­dia has all the ad­van­tages that a coun­try should have to be­come a lead­ing global man­u­fac­tur­ing power. The ob­jec­tive of our Prime Min­is­ter is to make In­dia the man­u­fac­tur­ing coun­try through “Make

in In­dia” that In­dia de­serves. In­dia may be the man­u­fac­tur­ing fac­tory of the world.

Make in In­dia is dis­cussed here in three parts: The ob­jec­tive with ground re­al­ity, Im­pact of Make in In­dia and how to make “Make in In­dia”.


● To give an im­pe­tus to the man­u­fac­tur­ing sec­tor and seek for­eign in­vest­ment.

● To im­prove In­dia's rank­ing from 142 among 189 economies to 50 in the World Bank's Ease of Do­ing Business In­dex in three years.

● Iden­ti­fi­ca­tion of 25 key sec­tors in­clud­ing auto, chem­i­cals, IT, phar­ma­ceu­ti­cals, tex­tiles, avi­a­tion, leather, tourism and rail­ways.

● Build­ing 5 new smart cities around high em­ploy­ment gen­er­at­ing in­dus­trial clus­ters such as tex­tiles, leather and food pro­cess­ing.

In­dia's devel­op­ment in man­u­fac­tur­ing has not been as strong as it should have been. It is now well ac­cepted that In­dia has to ac­cel­er­ate man­u­fac­tur­ing, and use this as the driver to cre­ate pro­duc­tive jobs and thereby re­move poverty on a sus­tain­able ba­sis. Man­u­fac­tur­ing was never given a pri­or­ity and its im­por­tance as a tool for re­mov­ing poverty was never fully ap­pre­ci­ated. In fact , in­puts for the man­u­fac­tur­ing in­dus­try have been costlier than the same in­puts for other seg­ments of the econ­omy.

It has been harder to do business in the coun­try as com­pared to most other coun­tries, and In­dian man­u­fac­tured prod­ucts have gen­er­ally not been glob­ally com­petit ive. The bot­tom- line Man­u­fac­tur­ing has not cre­ated the jobs needed for the grow­ing ad­di­tions to our work­force (Bhar­gava: 2015).

The Ground Re­al­ity

Man­u­fac­tur­ing has a low share in the econ­omy. The salience of man­u­fac­tur­ing in our GDP is

around 17per cent. The Gov­ern­ment wants to raise man­u­fac­tur­ing share in GDP by at­tract­ing more for­eign In­vest­ment and through mea­sures such as im­prov­ing Ease of Do­ing Business, some very spe­cific tax in­cen­tives, spe­cial push to 25 labour-in­ten­sive sec­tors, em­pha­sis on skilling to make work­force avail­able to make man­u­fac­tur­ing at­trac­tive. The Gov­ern­ment wants to lift growth in man­u­fac­tur­ing through “Make in In­dia”. The gov­ern­ment has on sev­eral oc­ca­sions, em­pha­sised that this should grow up to 25 per­cent for cre­at­ing jobs and plenty of op­por­tu­ni­ties. So, the cam­paign will in­crease the salience of man­u­fac­tur­ing in the GDP. (Ta­bles 1,2,3,4,5 and 6). The In­dex of In­dus­trial Pro­duc­tion has lan­guished in the past three years, dip­ping into neg­a­tive ter­ri­tory in 2013-14, as mega projects got stuck in huge time and cost over­runs. The dif­fi­culty in get­ting projects mov­ing is re­flected in In­dia's abysmal rank­ing in the World Bank's Ease of Do­ing Business In­dex-142 out of 189 coun­tries.

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