In this critical time of pandemic, the real question is whether the initiative has met its objectives or not. 'Make in India' campaign was initiated by Narendra Modi on 25 September 2014 to transform India into a global design and manufacturing hub. Under the 'Make in India' initiative, the government is trying to attract foreign investment and domestic business as well as to promote exports of goods, services and technologies.
The Make in India initiative, which is an outcome of PM Modi’s vision, has made India an investment hotspot. Due to the success of Make in India, India's manufacturing sector has gained momentum, which is clearly visible as various countries are now coming forward to invest in the direction.
The ‘Make in India’ initiative of the Government has come up with foundation decisions to benefit the MSMEs. While the campaign may still sound vague to many of us, experts are of the opinion that there is much to look forward to under this initiative. The ‘zero defect’ and ‘zero effect’ phrases are endorsed by most of these experts, who say that this has had a positive impact on the MSMEs of India.
The GST has introduced a new level of transparency and accountability. The demonetisation drive brought in more and more transparency in the system. Earlier people were struggling with the system, but now it is so much more transparent and accountable.
Steps taken to improve ease of doing business include simplification and rationalisation of existing rules. As a result of the measures taken to improve the country’s investment climate, India jumped to 63rd in World Bank’s ease of doing business rankings as per World Bank report.
The poor labour statistics of the country have created a sense of protest and anxiety among the workers. The labour reforms are necessary to improve the labour relations in the country. India must introduce labour reforms at earliest like raising minimum wages, providing better social security for the labour.
A simple taxation system is one of the most important aspects of inclusive growth, which makes it essential for any state to make sure its revenue policies are user-friendly and do not cause undue pressure on its citizens. However, the reality is that a majority of tax systems around the world are complex, bureaucratic and riddled with loopholes.
Land acquisition laws are one of the many factors that have stood in the way of large-scale investments. India’s labour laws make it tough for businesses to retrench employees, making businesses unwilling to expand and create more jobs. This also makes foreign investors wary of setting up factories in India.
Skill India's initiative of the Prime Minister is accompanied by many Sector Skill Councils across the country. With these initiatives, the nation has the opportunity to create a skilled youth army for a great career. Government must work in coordination with these sector bodies to stick on to the plan and export quality for better job prospects.
Indian states play a very crucial role in the implementation and success of the Make in India initiative. But different states differ and are not on the same page. To make the concept of Make in India a success, a common consensus among the states is needed. There is a need to bring the less performing states at par with the better performing ones through collaborative efforts.
A common lacuna that hampers the progress of Make in India programs is the lack of synergy between government agencies and industrialists. As a policy decision-maker, it becomes important to ensure that industry and businesses are encouraged and incentivized to initiate their Make in India initiative. To achieve this, we must take into consideration some key issues that affect India’s progress.
