Essay on Make in India: 6 Benefits to Reap from the Initiative
The subcontinent of India saw the launch of a revolutionary project on 25th September 2014- the Make in India initiative. Undertaken by the Government of India, and helmed by the current Prime Minister Narendra Modi, the initiative invites national and multi-national companies to manufacture their products on Indian soil.
The program was officially initiated in 2015, and India became the biggest recipient of foreign investments on a global scale, rising above the United States of America and the People’s Republic of China, having received foreign direct investment of $63billion USD in 2015 alone. In this essay, we will look at the positive impact the Make in India initiative has or is expected to make on the Indian economy.
Purpose of Make in India
The principal objective behind the Make in India initiative is to create more jobs and enhance skills in 25 economic sectors. Apart from this, the initiative also focuses on maintaining high quality of produced goods and making the entire process of manufacturing much more environment friendly.
Economically, this will give the country’s economy a great boost as products will become cheaper and standard of living increases with more people employed in the different sectors.
Prior to the launch of the Make in India initiative, certain measures were undertaken by the government. To begin with, various sectors saw a relaxation in e foreign equity caps. Licenses required less hassle as applications could now be filed online, and a license remained valid for three years.
The sectors that fall under the Make in India initiative are as follows:
Automobiles and automobile components, biotechnology, aviation, electronic goods and systems, electrical machinery, chemicals, leather, defense manufacturing, construction, food processing, media and entertainment, mining, business process management, roads and highways, biofuels, textiles, information technology, renewable energy, tourism, railways, wellness, space and astronomy, thermal power, pharmaceuticals, tourism, and mining.
Out of these, each sector is eligible to receive 100 percent foreign direct investment except for space and astronomy, news media, and defense.
The Positive Impacts of Make in India
All said and done, it is important to see how this “Lion’s step” has impacted India’s economy two years after it was initiated. We know that between September 2014 and November 2015, India proposals from companies wishing to open electronics manufacturing plants in India. The total value of these proposals is something around $19 billion USD. Apart from this, almost 25 percent of the smartphones that were shipped into the country were made in the country itself, making them much cheaper and of better quality.
Better Personal Income
The Make in India initiative has certainly created a lot of new jobs, and it continues to do so. The younger generation has been particularly benefited from this sudden boom in the job sector, with huge investments being made in the fields of telecommunications, tourism, pharmaceuticals, and the manufacturing of machineries and electronics.
It is also a great time to be an entrepreneur as many foreign companies are interested in investing in young businesses and start-ups. On a related note, it is not just the people directly employed in these companies setting up business in India who will be positively impacted; the location where a manufacturing plant or other office is set up also improves dramatically.
Every manufacturing plant needs to be set up in a location that is promising, and the area needs to be improved to accommodate the setting up of the plant. People in the location are often hired as labors required to build the plant, and this in turn leads to improvement in their standard of living as well.
Boost to GDP
Economic growth is the main focus of the Make in India initiative, and this is likely to be a great positive effect of the program. Setting up manufacturing plants in India positively affects the economy in manifold ways: it provides jobs to people and the finished products cost less, which means people have to pay less to purchase them, leading more money in their hands.
The trade sector will get a great boost, and the great growth in commercial sectors, fueled by the inflow of investments, will give great boost to the GDP. The Indian economy is already the seventh largest in the world, and it can be expected that the boost received by the sectors such as textiles, telecommunications, architecture, and exportation will strengthen it even further.
Boost to INR
The Indian Rupee is a pretty low priced currency at present, especially when pitted against the USD, the GBP, and the Euro. With the emergence of the country as the manufacturing hub for a variety of consumer products, the Rupee would certainly gain more value.
Boost to Indigenous Brands
Most of the population in India relies mostly on international manufacturers when it comes to buying consumer goods. Similar products manufactured by indigenous brands are not seen with respect, and they lose out on valuable business. This in turn does not allow these businesses to better their products and grow, and it remains a vicious cycle.
If companies around the work are willing to invest in small retailers and manufacturers within the country, it will increase the value of these indigenous brands and keep the money in the country. Besides, this will also help in increasing the brand value of indigenous products elsewhere in the world as companies that invest attempt to do business elsewhere.
End to Brain Drain
The Make in India project, if successful, can successfully put an end to the brain drain that the country has been facing over half a century. The lack of opportunities, inability to earn back the money spent on education, and less-than-enough enthusiasm for new businesses have forced the educated Indian youth to leave the country and try their fortunes abroad. As a result, India today faces a huge constriction in brilliant minds that are willing to work for and improve the country.
With ample opportunities available in e country, and ample investment for a new project, more and more young minds will be willing to share and implement fresh and innovative ideas for the betterment of the country’s economy.
Foreign investment does not only mean a cash inflow; it also means that these foreign companies will have vested interest in the companies they have invested in within India. As a result, we will have access to superior technology that will help us to make the manufacturing processes smoother. This, along with the huge number of educated workforce that India can provide, will make manufacture much easier and of better quality.
The Make in India project was touted by the Modi government as one of the greatest steps ever taken. And, if it turns out to be successful, the initiative will certainly prove to be extremely beneficial. There are certain drawbacks to it, of course, such as the depletion of agricultural and natural resources, pollution, and possible and disputes, but these are loopholes that need to be tied. If all goes well, the Make in India initiative can indeed make India a great and prosperous country.