‘Make in India’ is a concept proposed by our Prime Minister Shri Narendra Modi on 25th September 2014 for attracting investments from business around the world, and thus in a way strengthening India’s manufacturing industry. The main objective of ‘Make in India’ program is to make India a manufacturing hub, to create jobs for our educated youth and thus making India a self-reliant country. It will enforce the inflow of FDI. It will not only bring the economic transformation in India but will also let the government to utilize the human resource in a better way. The idea of ‘Make in India’ sounds very innovative but as we know every good side has a bad too, so same is the case with this program. This topic has become a brain storming for people as it should be ‘Make in India or Made in India’.
Basically India is a service industry which is trying to move its focus from the tertiary sector of the economy to the manufacturing sector. Keeping this goal in mind, ‘Make in India’ campaign was launched, so that more and more foreign investment can be in flowed. It will also help to solve the problem of employment needs of our growing population. On the economic front, it will boost trade and provide a link with the global supply chain and will reduce the current account deficit. It can expand the investment in infrastructure development. It will strengthen the bonds with other countries but will also provide a stable Indian economy.
But on the other hand, it has many disadvantages too. In ‘Make in India’ program we will just import the technology so that India will pay for the technology in terms of licensing cost, up-gradation cost, etc. Also, we do not have any control on the source of a company’s raw material supplies.
The outsourcing company bounds India by contract and will not share its secrets. There will be one more drawback, if some equally good competitor comes from another country, say from Africa or south America, where the conditions become suitable for manufacturing, then these companies can shift their base from India causing a significant number loss of employment.
Made in India can be an answer to these questions. It can encourage entrepreneurs to start up their business and be a part of the global skill pool as India lags behind in “home-grown brands” like German cars, Swiss chocolates and British scotch. Made in India will provide strategically benefits in terms of defense and nuclear energy sector which are crucial from the political perspective.
We have many examples of already working Made in India campaign which needs to be enlarged. CavinKare is one of the examples. Started as a small personal care products company now it is one of the big brands of South India. It derives 7 per cent of its revenues from international markets. It was started by C K Ranganathan with a little investment is now a company with 1,250 crore annual turnover and 5000 employees. Make in India is a good campaign but Made in India is far better.
The former will serve only the short term purpose. We should not be only good workers but we can be great entrepreneurs with new and fresh innovative ideas. What we only need is courage to think and start along with government support for investments. We can make our own brands and can create market for them internationally. In Software sector also we are only in service part. Another such example is of Patanjali group, which has created its own brand. Today Patanjali firm has also established its roots in not only in India but has also created its name outside India. So the government should applaud such daredevils who take the risk of creating new ideas and successfully implementing them.
So ‘Make in India and made in India’ both can be beneficial for India. India can benefit temporarily from outsourced manufacturing plants but it cannot stress it beyond a limit. It should rather focus more on encouraging research and development and bringing industrial innovation. Make in India should be a start to achieve the long term goal of made in India. Such drives are the need of the hour for making India self-reliant.