MAKE IN INDIA: SEED OF SELF-CONFIDENT INDIA AND MANUFACTURING FACTORY OF THE WORLD
Mithilesh Kumar Sinha | Professor Of Economics, Department Of Economics, Nagaland University, Lumami, E-mail: Mithileshkumarsinha5@gmail.com
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.