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Make in India, Made in India, Make for India- Opportunities for All

Written by Jyoti Kothari

June 18, 2019

Contents in the article – Make in India Made in India

This is a long article with several paragraphs that contain various aspects of the project Make in India, an opportunity for all. Made in India will be an outcome of the same. Also, there is a campaign “Make for India”. This is the first elaborated article written on the topics just after the launch of the campaign. List of the content paragraphs are as follows:

Make in India: An opportunity for all

Made in India: Present scenario

Made in India: Brand and history

A holistic approach to sustainable development

Reforms in the government

Potential of growth in India

Mining industries in India

Promises of Narendra Modi during the election campaign

BRICS Bank – the outcome of the BRICS summit in Fortaleza

International partnerships in Make in India

Swadeshi Sangam: Make for India

(NB: This article was originally written on September 28, 2014, and updated a few times. Again, it became relevant to Narendra Modi’s pledge to make India a $5 trillion economy. Hence, it reproduced here.)

Make in India vs China threat: Update October 2016

India and Indians have started boycotting Chinese products and there is a strong wave against China and Chinese products in social media since last one month. This is an opportunity for “Make in India” and can pave a solid path for encouraging Indian people to use products “Made in India”.

India imports 16% of its necessity from China only. Total imports of Chinese products worth $ 60 billion or Rs. 400,000 crore every year. Whereas it exports goods to China worth Rs. 50,000 crore or $ 7 Billion only. Hence, the trade deficit for us is about $53 Billion per year and this creates a huge imbalance in the economy.

China is a manufacturing hub of the world and India has the capacity to be. At least, India can produce as much as it requires to satisfy the need of its own people. It has started encouraging manufacturing industry and this is time to double or triple the effort.

China has opposed the entry of India in NSG in June 2016. Hence, India could not become a member of the Nuclear Supplier Group despite the support of most of the member countries including the US. This attitude of China created anger among Indians against China, that is further aggravated in September and October following a terrorist attack on the Army base at Uri, India. In the incident, Pakistani hands were clearly visible. However, China continued to support Pakistan. Also, it has blocked Indian appeal in United Nations to declare Masood Azhar a global terrorist. Social media, therefore, in India took the matter hand on hand and started appealing people to boycott Chinese goods.

Make in India and Modi- Obama meet on Republic day

This is the latest update in the “Make in India” campaign. Narendra Modi, PM of India has been putting all his efforts for the success of his dream. His tireless effort brought Barack Obama, the American President to Indian soil. He is the first US President to be the chief guest in Republican Day celebration in Rajpath, Delhi, India.

Both Modi and Obama announced that they have personal chemistry between them and they will take Indo-American relationship into a new height. Both America and India agreed to go ahead on Nuclear deal and signed a treaty eliminating two major hurdles. This happened on the first day of Obama visit on January 25. In addition, Narendra Modi, Indian Prime Minister, and Barack Obama, the US President had addressed a joint press conference and came out with a joint statement.

Indo-American CEO meet

The real outcome came in the Indo-American CEO meets on January 26th evening. Top business leaders from India attended the meet along with numbers of CEOs from the US. Modi was keen to make America a partner in his dream “Make in India”. Assuring his support president Obama informed India as a natural global partner. Afterward, They signed several treaties that will take the Indo-American trade into a new high.

Modi had assured the US businessmen to give them a warm welcome in India. He added that India will be the best destination for investment. In an unprecedented move, Indian PM told that he will himself monitor the Megaprojects. All these will lead to boost American investment and India will get the required technologies and investment. Modi is succeeded in giving “Make in India” a great boost.

Reaction from China

China has reacted badly on this Indo-American friendship because this masterstroke has threatened China’s supremacy in the manufacturing industry. India has started emerging as a strong competitor in the Asian region. Political will and determination of Narendra Modi is a challenge for China and it does not want friendship between India and America.

Read also: What can India learn from the US, China, and Japan to raise its GDP to $5 Trillion?

Make in India: An opportunity for all

Make in India is not only a slogan of Narendra Modi, Prime Minister of India but an appeal with a commitment. He and his government are emphasizing on this slogan wholeheartedly. Obviously, this is an opportunity for all. Whether you are an investor, a manufacturer, a businessman, a scientist, a professional, a thinker or even a job seeker you can find an opportunity in this worldwide campaign.

( If you leave the article and don’t read it completely. Missing a paragraph means you may miss an opportunity.  Each and every paragraph of this article will explain the world’s largest campaign from different angles.)

India is a fast growing nation and built its capacity in service sectors. It has proven its capabilities in Information Technologies globally. Moreover, the US, the EU countries and even the Gulf countries love to outsource their mobile applications and eCommerce development works to Indian IT companies. The reason behind is the quality work at an affordable price much cheaper than the global standards.

However, India is lagging far behind in the manufacturing sector. China has more than 22 percent share in the international business and the US has slightly over 17 percent. However, India has only a 2 percent share in manufacturing in global trade. The manufacturing sector contributes only 15 percent to Indian GDP in comparison to 56 percent of the service sector. The country is the only major economy without a strong manufacturing base. Rightly, the “Make in India” campaign aims to increase it to 25 percent of GDP.

Scope and hope in Make In India

There is huge scope in growing in this sector and that prompted Indian Prime Minister to launch the “Make in India” program on September 24. He announced this campaign on 15th August 2014 while addressing the nation from Red Fort, Delhi on the eve of Independence Day. It seems that this campaign will shape the future of the Indian economy and change the destiny of the Indian people.

“There is a high tide of hope for change in India. This May, across India’s immense diversity, 1.25 billion people spoke unequivocally for political stability, good governance, and rapid development”, wrote Narendra Modi starting an article on the launch of Make in India program. He further informed, “The young people’s energy, enthusiasm, and enterprise are India’s greatest strength. Unleashing those attributes is my government’s biggest mission”.

Indian Prime Minister promised global community especially investors of eliminating unnecessary laws, rules, and regulations to accomplish this mission. He also expressed his willingness to ease bureaucratic processes.

Made in India: Brand and history

“Made in India” is a brand that is to be promoted all over the world. Historically, India was the biggest manufacturer in the world in the ancient and medieval periods. In fact, India alone had been producing much more than the sum total of the rest of the world. There are large numbers of pieces of evidence suggesting that India had been importing gold, silver, and gemstones against their merchandise exported. As the rest of the world had nothing to export to India.

The scenario change in British India

The scenario started changing with the British conquered and captured India. Systematically, the British government ruined Indian cottage industries. Moreover, the invention of the steam engine has played a significant role in the industrialization process of Europe in the 19th century. Later, in the 20th century, America took the bus. As a result, Indian cottage industries lagged behind. they could not compete with the then modern machines.

Despite systematic ruining of Indian cottage industries, the English people have established modern industries in India. They established several very large jute industries on the banks of river Hooghly near Kolkata. They did it to exploit the jute crop of Bengal. Several Indian businessmen, later on, joined the trail. Similarly, Bombay and Ahmadabad had grown as a textile hub. At that time, Ahmadabad was called Manchester of India. Several other cities such as Delhi, Kanpur and Madras were developed into Industrial cities in British period.

Swadeshi movement

In the early 20th century, the Swadeshi movement in Bengal played a vital role in reducing dependence on English merchandise. Import was replaced by indigenous goods to revive Indian cottage industries. Mahatma Gandi, his team, and followers were successful in accelerating the movement that has finally turned into advancing Khadi. Gandhi made it a political tool to eradicate the roots of British rule from India. The movement acted s a booster to Indian manufacturing.

Pundit Jawaharlal Nehru, his descendant, took charge as first Prime Minister of India. He had a different vision and started the industrialization process in India establishing several heavy industries. He worked on a mixed economy. We have seen large state-owned industries along with private factories. Likes of Tata and Birla joined his hands soon.

Made in India: Present scenario

India is manufacturing almost everything the country needs from the ring to rocket and from soap to satellite. It is producing the highest numbers of bicycle and a maximum quantity of diamonds in the world. In fact, India produces 11 out of every 12 diamonds cut and polished globally. Large automobile industries in India are manufacturing two and three-wheelers, cars, trucks, tractors, and buses. Indian tires are known worldwide for quality and durability.

India manufactures cotton and synthetic yarn, clothes, garments, and other textiles to fulfill indigenous and international demands. Additionally, the steel and cement industries have a huge capacity. Similarly, oil refineries are capable of refining crude oil produced and imported in India. Electricals, electronics, home appliances, ceramic and other countless industries are set up in India. Its cottage industries are still a big player in consumer and export markets.

Indian share in the global manufacturing sector is negligible despite all these in the present. China is the most advanced and overcame the US and Japan in the past two decades.  “Made in China” has flooded worldwide markets. However,  “Made in India” seldom finds its place in a global market. Narendra Modi and his government are willing to change the scene and to establish “Made in India” as a global brand. The campaign for “Make in India” is the initiative of the Indian government to achieve this goal.

A holistic approach to sustainable development

India has the highest young population in the world with eight hundred million people below the age of 35. The country has invested huge money in educating and training them. Large numbers of employable youth are the main strength of the country. Indian labors are much cheaper than any other competing country. Average labor rate in India is $137 per month whereas one has to pay more than $300 in China. Labor rates in the likes of the developed nation of the US, EU, Japan, South Korea are much higher. India has a competitive advantage over all other countries in the world in this area. Only, its poor infrastructure keeps India behind.

Creating world-class infrastructure India needs badly, is the biggest challenge of the Modi government. And Narendra Modi is ready to take the challenge to accelerate GDP growth. Moreover, he wants to develop Indian villages to be the new engines of economic transformation. This is an addition to his idea of developing smart cities. “Make in India is our commitment—and an invitation to all—to turn India into a new global manufacturing hub. We will do what it takes to make it a reality” writes Modi. This will, certainly, be transforming India.

Video: PM Narendra Modi launches Make In India Initiative

Reforms in the government

BJP, the then main opposition party in India has been continually alleging that the last UPA government was suffering from policy paralysis. Naturally, Narendra Modi, the new PM has the responsibility to bring the nation out from this phenomenon. Already, the new government has gone through radical changes in the government and its administrations. This is to show willingness for transformation towards good governance. Also, he has gone for structural changes while forming his cabinet of ministers.  Surprisingly, he abolished the system of a group of ministers (GOM) to ensure the process of decision making fast. Additionally, he amalgamated several ministries and separated some for faster processing and decision making.

The new government is in the process of restructuring the old system of the planning commission and emphasizing on better cooperation between the Central (Federal) and the state governments. The federal structure of India demands the same for inclusive growth in a diversified country. As a major step in economic reform, India has allowed 49% share in FDI in defense sector manufacturing raising it from 26 percent.

Video: Make in India is a Lion’s step! – PM Narendra Modi

Potential of growth in India

India has tremendous growth potential in the economic sector. GDP growth rate of India is the second highest in the world after that of China while writing this article. India has been maintaining growth rate continually from the beginning of the 21st century. Mainly, the growth came due to advancement in the service sector, especially IT. Everybody knows that India is a global giant in software and other related industries. Indian IT companies are handling global outsourced jobs in almost all sectors. Finance, logistics, education, legal services, healthcare, retail are only to name a few. Also, BPO and KPO sectors have played a vital role in the growth history in this century.

Earlier, India was a leader in global manufacturing scenario and manufacturing (mainly engineering) sectors. It used to occupy the number one position in Indian exports. However, it has started declining with the globalization process while China has been started dominating the manufacturing world. As a result, India has come out as a major importer of manufactured goods. This has created huge trade imbalance with China, the biggest player in the manufacturing sector.

India has the highest numbers of engineers and the second largest numbers of labors in the world. Indian labors are the cheapest in the world as I have stated earlier. Indian artisans are skilled in several fields including engineering goods, gems, and jewelry, handicrafts, garments, textiles, carpets, etc.

India is doing well in advanced technologies likes of space research and atomic energy. It has established heavy industries such as steel, railway engines, cars, heavy electrical, jute, and textiles long before. The country has also been running several oil refineries. Advantageously, Indian youth is born and brought up with digital technologies.

Video: Modi’s Make in India makes a big splash in China

Mining industries in India

The mining industry in India traces its history back to 6000 BC. There are pieces of evidence that Indian gold mines were producing the precious metal even in 6000 BC. India has started mining copper and even iron ore to make stainless steel in ancient times. A One can see a second century BC stainless steel pillar in Delhi.

Large numbers of coal mines producing Bitumen and lignite is the main source of biofuel in India. It is producing some quantity of crude oil, too. However, it is not enough to fulfill the Indian need. There is iron ore, led, zinc, aluminum (bauxite) and other metals in the Indian earth. Mica, bentonite, ball clay, soapstone, marble, granite, limestone and large numbers of other minerals are abundantly available in India to fulfill the industrial need of the manufacturing sector.

Availability of all these minerals creates an opportunity for entrepreneurs and investors to establish manufacturing industries in the country. Surely, this adds to the growth potential.

To sum up, The country has enough growth potential largely untapped. Certainly, new government initiatives create hope. However, India needs to revolutionizing its education system to hack the growth potential.

Video: Is the New BRICS Bank a Challenge to US Global Financial Power?

BRICS Bank – The outcome of the BRICS summit in Fortaleza

The proposed New Development Bank is a major outcome of the BRICS summit held in Fortaleza, Brazil. This will immensely help in the Make in India project. Nation heads of five countries (Brazil, Russia, India, China, and South Africa) declared establishing a new bank on July 15, 2014. Presently the New Development Bank (NBD) will hav$ hundred Billion capital. Each of the five countries will contribute an equal amount of $20 B.

State of BRICKS Nations

State of BRICKS Nations

Obviously, the headquarter of the bank will be in Shanghai, China. However, the Chairmanship will be rotated among member countries. India will have an opportunity to appoint the first Chairman with five-year tenure. The NBD will finance infrastructure and sustainable development projects, a must, to run Make in India. This bank will reduce dependence on the World Bank and the International Monetary Fund (IMF).

MOU on Cooperation among BRICS Export Credit Insurance Agencies, a treaty for Establishment of a BRICS Contingent Reserve Arrangement and Cooperation Agreement on Innovation is another main phenomenon of the sixth BRICS summit. This will, surely, be beneficial for India to run its program.

Video: Indian Prime Minister Narendra Modi leaves for America visit

International partnerships in Make in India

India is open to the rest of the world historically. Openness is a natural instinct of India. Narendra Modi is ready to share his dreams of “Make in India” with international friends.

“India will be open and friendly—for business, ideas, research, innovations, and travel”, he said. Partnership with the international community, he believes, is key to success in this era of globalization. He wants to create a win-win situation for both India and its global partners.

The Prime Minister has already emphasized on building good relationships with neighboring countries inviting them in his oath ceremony. He visited Bhutan and Nepal, both small neighbors in his just four months’ tenure. He has also visited Japan, global economic power and become successful in attracting $ 35 B investment from the country of the rising sun. All of us know that Japan is very conservative while investing in foreign countries. However, Modi could win their confidence.

Similarly, Australian foreign minister visiting India signed a treaty for supplying Uranium, a must for atomic energy. This shows the trust of the global community over India in the nuclear front. Xi Jin Ping, President of the People’s Republic of China has recently visited India and China has signed several business treaties with India and promised $20 B investment.

India and China

India has a border dispute with China since a long time and aggression of China in both military and economic front is well-known. Chinese forces have trespassed Indian Territory at Laddakh region even at the time of their Presidential visit to India that created hue and cry in Indian media. China has agreed to withdraw its forces after Indian protest and discussion between foreign ministers of both the countries.

There is an important bi-lateral business issue between China and India. Indian import from China is much more than its export. This creates foreign trade imbalance against India. Narendra Modi asked assurance from the Chinese President to act for reducing this imbalance.

Make in India will surely have an impact on reducing the global trade imbalance. China has launched Made in China following the Indian campaign.

Video: Narendra Modi Madison Square Garden Speech – Full Speech

Swadeshi Sangam: Make for India

Swadeshi Sangam was an event organized by the RSS family in Jaipur on October 11 and 12, 2014. It was an all India conference of Swadeshi Jagaran Manch. Make in India campaign was thoroughly discussed in the Swadeshi Sangam.

Though RSS has been standing firmly behind Narendra Modi, Swadeshi Sangam has a different opinion about Make in India. They unanimously stood for “Make for India“. Representatives of Swadeshi Sangam have opposed Modi’s move for foreign direct movement. Speakers in the forum discussion opined that foreign investors will get lion’s share of profit and money will be drained from India.

Swadeshi representatives were anxious about reforms to attract FDI. According to them, India should make for its own. They opined that indigenous development would be better for India.

Video: Mukesh Ambani pledges 1.25 lakh jobs at ‘Make in India’ launch

 

 

 

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