Advantages and Disadvantages of Make in India

What is Make in India

Our Prime Minister, Mr. Narendra Modi, used the concept "Make in India" about foreign marketing on September 25th, 2014, at the Vigyan Bhawan Convention Center in New Delhi.

The catchphrase was developed to promote domestic production and investments in India by luring clients from all over the globe.

The goal of such an effort is to boost India's economic growth, make India an independent nation, and give the Indian economy international prominence. It also aims to enforce primary, secondary and tertiary sector job creation.

This effort intends to enhance both the quality of the nation's services and the flow of direct investment from abroad by partial privatization of the functions of governmental bodies that are suffering major losses.

The objective of Make in India

• To establish India as a leading industrial nation.
• Inviting businesses from around the world and enticing them to establish businesses and gain their facilities in India.
• To employ the abilities and skills of Indian laborers to produce items with no defects.

Purpose of Make in India

• Generating employment, particularly for the younger generation.
• The expansion of the Indian economy.
• Gaining international acclaim.

"Manufacture in India and sell the goods abroad," is the campaign slogan of 'Make in India'.

Why Make in India

Making sure that there is minimal inflation, policies are regular and prediction of inflation is the prime purpose of the Make in India initiative.

Additionally, the investors with Make in India would look for stable trade policies, import and export taxes, and taxation.

Steps to make 'Make in India' Successful

• Numerous initiatives aimed at helping rural residents and disadvantaged urban residents acquire their capabilities will be presented.
• Twenty-five crucial industries, including automotive, travel, and telecommunications, have also been picked for this initiative.
• Providing people between the ages of fifteen and thirty-five with high-quality training. Important disciplines, including welding, nursing, masonry, painting, etc., are covered in training.
• Upon completion of the program, a skill certificate must be given.
• Over a thousand training facilities will open throughout the Country over the coming two years after this campaign gets underway.

Make in India Initiative

The Make in India program's main initiatives include the following:

• Investor Facilitation Cell: The govt. launched the Investment Indian Cell, sometimes called the Investor Facilitation Cell. It is the initial frame of reference for international investors seeking information on Indian laws and policies. Additionally, this cell helps them obtain regulatory approval.
• Consolidated Services and Quick Security Clearances: The e-Biz single-screen web service houses all central government services. The home minister will give all security approvals for investment applications within three months. States are required to give security clearance self-certifications.
• Interacting with Users and Visitors: An effort has been made to follow visitors by looking at their interests, current whereabouts, and their activity in real-time. Information, instructions, and a newsletter will be sent to website visitors who registered or submitted any concerns.
• Business Queries from a Separate Portal: A separate portal, http://www.makeinindia.com, has been built and will respond to all business entity queries. The back-end support team will reply to particular inquiries within 72 hours.
• Simplifying Several Policies and Laws: The duration of various industrial licenses has been increased to three years under the Make In India project. Also, having their licenses canceled are a substantial number of defense-related items.
• The 2015 Companies (Amendment) Act: The Companies Act of 2013 stipulated that businesses have to have a common seal and a minimum paid-up share capital. But these demands were dropped by the new statute of 2015. In addition to this, numerous additional Act No. 18 of 2013 provisions that in some way related to the Make In India initiative were also clarified. There were also fewer rules and regulations.
• Establishment of Investor Facilitation Unit: "Invest India" has established an investor facilitation cell. This cell's duties include assisting, supporting, and guiding investors throughout the firm. These departments established the Department of Industrial Policy and Promotion, which also created Korea Plus and Japan Plus. They are specialized management groups that help Korea and Japan invest quickly.
• Protection of Minority Investors: As part of the Make in India initiative, new protections have been extended to minority shareholders, including those who own stock in privately held businesses.

Problems in Implementation

The following obstacles hinder the development and implementation of the Make in India initiative.

• Land Purchase: This campaign's participants claim that the cost and complexity of land acquisition make it a very expensive and time-consuming process. A clear and strong land acquisition policy is necessary along with appealing R&R packages that will encourage investment in manufacturing and infrastructure.
• Tax on Tax: Before the Goods and Service Tax implementation, the issue of tax on tax or multiple taxing was present. Double taxation is no longer an issue because of the Goods and Services Tax.
• Companies Act, 2013: The 2013 Companies Act's requirements were extremely strict and complicated the process of forming a company. Revising the Companies Act of 2015 resolved these issues, but Make in India still faces some obstacles due to some of these rules.
• Poor Governance: More than coming up with a plan is required; it must also be implemented while maintaining effective governance. The development of the manufacturing industry and the effective execution of Make in India depend on good administration. Economy growth will be hampered by poor governance.

Advantages of Make in India

1. Employment Generation

The main goal of Make in India is to generate and offer jobs for everyone, particularly for the nation's younger generation. Sectors such as telecommunications, pharmaceuticals, tourism, etc. generate jobs. Young entrepreneurs will be inspired to apply their creative ideas for the country's advancement by the younger generation.

2. Improvement in Area:

The area is also improved. When a factory or an industry is established in a location, it draws customers, workers, and other residents. Together, the neighborhood, its surrounding communities, and the residents of these communities develop. As a result, the families that live close to these places will have a better financial situation.

3. Good for GDP

GDP stands for Gross Domestic Product. The level of a country's GDP determines its level of development. The Make in India program will help Indian industries grow, which will increase the Country's income. Developing industries like exporting, architecture, textiles, communication, etc., would strengthen India's economy.

4. Rise in Rupee's Value

The value of the rupee will rise as a result of Make in India, which will bring in more foreign direct investment and raise the rupee's exchange rate with the US dollar. Additionally, this will lessen the impact of the dollar's control over the rupee in India.

5. Growth of Native Products

A shift from foreign brands to native products will occur. Indian consumers are drawn to international brands and pay little attention to indigenous brands, which hurts local manufacturers. Make in India would help local producers gain recognition for their goods in the nation and start earning a profit.

6. Technological Developments

Made in India gives Indians access to cutting-edge equipment. This program stimulates the development of new technology in India. Additionally, strengthening the nation's labor force's abilities is a priority.

7. Simplifying Operations

Make in India initiative is an open invitation to all manufacturers operating globally. The government has lifted several limitations to welcome as many firms as possible.

The young people of India never have the opportunity to live in a setting where they may hone their abilities and put forward their innovative ideas; as a result, they leave the country in search of better possibilities. Make in India will create the necessary climate within the nation and draw creative ideas from the nation's bright young people.

Rural India's development is possible through Make in India. When a factory is built, it not only brings in workers but also stimulates development in the local area. When a factory is built in a remote region, nearby markets, hospitals, and other amenities become available.

Disadvantages of Make in India

1. Impact on Agriculture

Sixty-one percent of India's farmland is devoted to agriculture, making it an agrarian society. However, Make in India promotes industrial growth while excluding agriculture from it.

2. Resource Exploitation

Resources are finite by nature, yet human wants are endless. The survival of the population may soon be in peril due to this. The Make in India initiative focuses on growing resource-intensive manufacturing sectors.

3. Loss to Small Entrepreneurs

Make in India welcomes foreign nations to its country, and when these nations establish manufacturing facilities, they draw residents to them. This causes a loss to small business owners already working hard to establish their positions.

4. The loss of Arable land

The campaign strongly emphasizes the construction of an industrial complex in India. These production facilities can be located anywhere, and occasionally they even use agricultural land. Therefore, Make in India will destroy the value of arable land.

5. Losses to Other Sectors

The primary sector, the industrial or secondary sector, and the service sector comprise the three main sectors of the Indian economy. However, Make in India focuses more on the secondary sector, leaving the other sectors in the dust. A complete focus on the manufacturing sector won't lead to economic progress for the nation because the economy cannot develop by developing one sector solely.

The pollution index for India is currently 76.50, and after the Make in India Campaign, this number will rise undoubtedly.