Taking a leaf out of China’s development handbook, India launched her “Make in India” week on Monday with much fan fare. Inspired by Germany’s annual Hannover Messe, India’s Make in India week is New Delhi’s effort to bring India’s manufacturing sector on par with her services sector, generate jobs and ease imports.
Estimated to create a 100 million jobs and increase manufacturings contribution to the national output to 25 percent from the current 17 percent, the initiative is a massive nationwide drive to boost manufacturing in India.
China’s manufacturing sector in comparison contributes 35 percent to the GDP. Initiated in 2014, ‘Make in India’ is a flagship of the Modi regime. The main objective is to develop a Chinese-style global manufacturing and export powerhouse that will make India one of the top 50 nations in the world on the World Bank’s Ease of Business ranking.
Currently, India stands at 130. In comparison to her sweet and sour neighbour, India’s desire to propel manufacturing comes from weak industrial data. Never a manufacturing powerhouse, India is now keen to increase factory output and industrial production. However in order to do this and bring in fresh investments, New Delhi needs to cut the proverbial red tape and lay out the red carpet instead. Like China she needs to give funds at affordable rates, offer cheap inputs and provide world-class infrastructure. In addition, she will also need to bring in technology, regulate environment norms and create skilled talent to attract both domestic and international manufacturers.