• UGI USER
  • Oct 28, 2023
  • 23 Likes
  • 0 Comments

Q. Make in India failed to yield desirable results Discuss the reason for its failure, also suggest the pragmatic remedies in the light of slowdown of global economy.

Structure of Answer

Introduction 

  • Explain briefly Make in India initiative, its objectives

Body

  • Mention reasons for failure of initiative
  • Mention Measures and Remedies in the Face of Global Economic Slowdown

Conclusion

  • Mention need focused and pragmatic reforms that takes into consideration both domestic strengths and international economic realities

Make in India” was launched in 2014 as a major initiative to transform India into a global manufacturing hub. The initiative has been successful in attracting some foreign investment and boosting the manufacturing sector to some extent. However, it has failed to yield the desired results.

Reasons for the failure of Make in India initiative

  • Ambitious Goals and Unrealistic Targets: set overly ambitious goals, including increasing the manufacturing sector’s growth to 12-14% per annum. Historically, India had never achieved such high growth rates.
  • Lack of Sector-specific Focus: The initiative encompassed too many sectors, diluting its impact and making it challenging to develop tailored policies for each.
  • Timing and Global Uncertainties: The initiative coincided with a time of rising global trade protectionism and economic uncertainty, making it ill-timed for attracting foreign investments.
  • Policy Inconsistency: The lack of consistent policies and failure to harness comparative advantages led to focus dilution.
  • Investment Deficit: While the ease of doing business improved, private sector investments didn’t match expectations. Investment growth lagged.
  • Discrepancy Between ‘Swadeshi’ and Foreign Capital: The initiative created a contradiction with ‘swadeshi’ (indigenous) products being manufactured with foreign capital, leading to inconsistencies.

Pragmatic Remedies in the Face of Global Economic Slowdown

  • Realistic Goals and Sector Prioritization: Set achievable targets based on India’s historical manufacturing growth and prioritize sectors with significant potential for development.
  • Flexible Policy Adaptations: Develop adaptable policies that consider global economic uncertainties and swiftly respond to changes in market dynamics.
  • Investor Confidence Building: Focus on restoring investor confidence by addressing bureaucratic bottlenecks, improving ease of doing business, and ensuring policy consistency.
  • Skill Development and Workforce Training: Invest in skill development programs to equip the workforce with the necessary capabilities for modern manufacturing.
  • Infrastructure Development: Prioritize infrastructure development to create a robust backbone for the manufacturing sector, including transportation, logistics, and energy supply.
  • Global Supply Chain Integration: recognize global supply chain integration, leveraging India’s cost-effective labor and improving connectivity with global markets.

Make in India” initiative, although promising, encountered significant challenges including unrealistic growth targets, diluted focus, and global uncertainties. Reviving the manufacturing sector will require a more prepared, realistic approach that takes into consideration both domestic strengths and international economic realities.