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“Make in India drive” is an Attempt to boost Manufacturing Sector
During his Independence Day speech, Indian Prime Minister from the ramparts of Red Fort in New Delhi invited the people from the world to come to India and ‘make in India’ so as to boost the growth in manufacturing sector.
Currently, Indian economy is trying to revive its growth but manufacturing sector is dragging the overall growth targets. In 2013-14, the overall growth of gross domestic product (GDP) was 4.9 percent while that of manufacturing sector was -0.2 percent. In previous year also, it achieved a meager of 1.1 percent. The consistent poor performance by the manufacturing sector made the PM to announce some measures to give an impetus to the activities of manufacturing sector.
Apart from calling for ‘make in India’ drive, he also asked the Indian youths to manufacturing by setting up small units. In order to make India a major export hub of the world, he called upon the youths of the country to do research to identify at least one product which they can manufacture and help in reducing the country's import bill.
Not only this, but they should look at exporting those items as well. He also gave the slogan of ‘zero defect and zero effect’; zero defect so that our products should not be rejected in the global market while zero effect refers to no negative impact on environment. The focus on manufacturing sector would help in creating employment for people while on the other hand, it will help in maintaining balance in exports and imports.
In this manner by initiating the ‘make in India drive’ by the people of the world as well as the youth of the country, ‘made in India’ products will be seen in every nooks and corner of the world. Sharing the PM’s vision, President of India also asked the premier technology institutes in India i.e. IITs (Indian Institute of Technology) to become the harbinger of vision of ‘make in India’ and ‘made in India’. It is necessary because of dissemination of technology and innovation is imminent from research institutes to the industry to make the latter’s growth sustainable.
However, on the hindsight, it is seen that merely lowering the interest rates and calling up the investors is not sufficient to boost the economic activity. An entrepreneur would start enterprising even at higher interest rates and without invitation if he could foresee the profits generating from the project.
Additionally, the procedure of setting up a new project must be lucid and free of red tape. Current Indian labour laws, land acquisition laws, environment laws and other local laws, enacted to assure social justice have so far failed in their objective but succeeded in hindering the economic activity.
World Bank in 2013 ranked 184 countries on the basis of ease of doing business where India ranked 134. It is because the essence of Indian policies so far has been of ‘prohibited if not permitted’ but in order to inculcate the spirit of entrepreneurship, it should be ‘permitted if not prohibited’. Nevertheless, the good thing is that the wheel of change has started moving.
Recently during his Japan visit, Indian PM told the investors that now they will not see red tape in India, but red carpet to welcome them. Now when the government is ready to fire all guns to revive the manufacturing sector, the sector will be left with no option but to grow, expand, flourish, create employment and bring foreign exchange reserves.