Make In India – Problems & Prospects

Abstract

India is a land of massive potential with its abundant natural resources and young, talented workforce, which undoubtedly are the two factors important enough to make the country a manufacturing land, but, most astonishingly, the numbers do not speak greatly about it. Since 1991, the era of post liberalisation, there has been a steady decline in GDP from 15% to 13% between 2010-2013 from manufacturing sector in comparison to service sector. If the growth of the manufacturing sector is to be propelled, then there is a greater need to maintain cost effectiveness and competition. Continuous changes take place in productivity, wages, energy-cost and currency rates with reference to the global standing on cost effectiveness. In this context, to a large extent, India has scored well on cost competitiveness and holding on to it, steadily.

The Honourable Prime Minister of India is intensively campaigning to the leading world entrepreneurs to participate in his pet project “Make in India”.  His visit to several countries, of late, bears testimony to the fact that “Make in India” program is top on his agenda. The Government of India has also partnered with the recently held “Hanover Messe 2015”, the largest Industrial fair. These initiatives may be time consuming and resource intensive affairs but are holistically directed to enhance image of India in the global landscape. The crux of these efforts is to make India as one of the manufacturing countries so as to deal with the issues of providing employment and economic progress.

This paper seeks to focus primarily on startling truths and certain measures to be factored-in, to ensure “Make in India” aspiration is fully realized, at the same time, it also tries to emphasize on the mutually rewarding benefits to domestic and foreign companies in developing India as a destination for commercialization and commerce.