The make in India campaign focuses on sectors like oil and gas, railways, electronic systems,ports and shipping, renewable energy, roads and highways. Space, textile and garments, thermal power, tourism and hospitality and wellness.
Mr. Narendra Modi, Prime Minister of India, said
“I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity that come make in India,”
PROS of Make in India Campaign
Campaign for the masses
The Prime Minister emphasized on the development of labour intensive manufacturing sector. This campaign is to generate a lot of employment opportunities in Manufacturing.This would help National Manufacturing Policy in achieving objectives through this campaign. The aim is to increase the GDP from current 15-16% to 25% till 2022. (Manufacturing sector)
The purchasing power of people will get increased through employment. This will help to eradicate poverty. This would also help in the expansion of consumer base for companies.
Model of the Make In India campaign
The model of the campaign is look east and link west policy . This will strengthen the industrial linkages with other countries. This would also help to build bilateral ties with many countries.The growth model is Export-Oriented. This will improve India’s Balance of Payments. This would also help in piling up foreign exchange reserves.
An auto response mechanism will be formulated by the government. The Government also has decided to resolve issues about procedural clearings. This will be done at different levels in a given time frame. This is a positive step towards an industrial friendly environment.
Foreign investment will not only bring foreign capital. It will also bring technical expertise and creative skills .
Fortifying the Rupee
The emergence of the manufacturing industries would help in converting India. The nation would then will be a hub. A place for the fabrication of various commercial products. This would lead to be a grand collection of the FDI. All this in return would help to strengthen the rupee. This would help against the domination of the American dollar.
Up-gradation of technology
India is an underdeveloped country. This means that we lack various latest, new age mechanization. Lack of new technology is a big hurdle in the path to development of the nation. But due to the campaign a lot of investors would be attracted to India. This would give India an opportunity to upgrade to the latest version of technology.
Availability of Youth
The young generation is often referred to as a unending fuel. Youth comprises of a major Indian population . This youth often moves outside the nation to study and make a future. India due to the lack of young labor misses out on all the innovative and creative points. Make in India can make this possible by keeping the youth in the nation. This would also give them ample opportunities.
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CONS of Make In India campaign
India, the second China?
When it comes to a theoretical perspective. It can be seen that the campaign tends to violate the theory of comparative advantage. India should import the products that cost more at production in state .
Is the world ready for a second China? This goes as per the point made by Dr. Raghuram Rajan. Government of India wishes to convert India into a second China. India but has no time advantage like China.
India to stop imports?
Make in India will lead India to focus only on export. This will lead India to make some changes in it's export promotion measures. This can have a devastating effect on the import bill.India suffers from a countless number of companies that are called infrastructural bottleneck. To overcome this India has to invest a huge amount over a span of some years. Generating such a big amount is a a hard task.
Agricultural negligence
Agricultural sector will take the greatest blow due to this campaign. India has 61% cultivable land. This will happen due to the introduction of industrial sector. This introduction would lead to the negligence of Agriculture.
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Depletion of Natural resources
The Make in India campaign focuses on Manufacturing Industries. To set up these a lot of industries have to be build up. The manufacture of these requires a lot of natural resources be it fuel, water land. So a lot of new build ups would cause in depletion of these.
Loss of Small businesses
The Make in India welcomes foreign companies. To invest and manufacture in India. This act eases up the rules for foreign trade and investment. This act may seem very healthy when it comes to foreign relations. But this would cause domination over small businesses . This would force them out of business.
Recognition of Indian Products
The make in India campaign would help increase the brand value of Indian products. But this wont help the brand when it would come to the upper middle class. The upper middle class are the people who can actually afford all this. So making a mark in front of them would be a great task.
Pollution
India is currently unable to do anything with the problems like Pollution. According to stats Pollution Index of India is 76.50. The Make in India is supposed to increase this further. The level of Pollution in India would rise to levels never seen. This would make the condition in India worse. So, Make in India can help India economically. But would have adverse effects ecologically.
Author: Abhishek Gupta
Source : https://startuptalky.com/make-in-india-good-or-bad/
Date : 2020-09-04T05:42:20.000Z