The world wants to Make in India
Decisive leadership, a large market, a young workforce, and a vibrant democracy make India an attractive proposition for investors
India’s transformation from an economy weakened by a decade of mismanagement under the United Progressive Alliance (UPA) government to a rare, sought-after bright spot in today’s tumultuous world is a result of various effective policies, including the flagship Make in India initiative. It was launched by Prime Minister (PM) Narendra Modi 10 years ago to reinvigorate job creation and stimulate economic growth.
The Make in India mission has delivered results that make the country a favoured investment destination. As PM Modi said, it is a roaring success that has made India the focus of global attention and curiosity. It has empowered businesses, especially MSMEs, to produce high-quality goods and transformed several sectors from being importers of sub-standard products to exporters of high-quality goods.
An example of this transformation is toy manufacturing, which has seen a 239% jump in exports while imports have halved. This has helped local manufacturers and sellers, and of course, the children, who were earlier exposed to hazardous, low-quality toys that were imported.
India’s journey has been exciting, and the future looks even more promising. The wide array of policies initiated by the Modi government to encourage investments and provide high-quality goods and services is now bearing fruit.
This exciting journey began from a precarious position. The scam-scarred UPA government had inherited a robust economy with strong macroeconomic fundamentals, but it left behind a mess that made citizens anxious and businesses pessimistic. The economy was in a state of disarray, plagued by high inflation, slow growth, an unstable rupee, vulnerable banking system and a neglected manufacturing sector. On top of that, the UPA government faced a series of corruption scandals involving mind-boggling sums of money.
However, after a decade of PM Modi’s visionary leadership, India has maintained manufacturing momentum despite formidable challenges like two wars and the devastating global pandemic. As the PM rightly said, “Make in India initiative illustrates the collective resolve of 140 crore Indians to make our nation a powerhouse of manufacturing and innovation. It’s noteworthy how exports have risen in various sectors, capacities have been built, and thus, the economy has been strengthened.”
In contrast to the UPA era, which was plagued by scandals, the Modi government has overseen a surge of innovation, with the Startup India initiative leading to the creation of about 15 lakh jobs. These startups are not just creating jobs; they are also providing solutions to reduce food wastage, provide better health care, empower women, help farmers, and improve sanitation. The government is also supporting manufacturing through initiatives like the development of 11 industrial corridors and 20 smart cities, attracting investments of ₹1.7 lakh crore and generating direct and indirect employment for thousands.
Additionally, the Production Linked Incentive (PLI) schemes are transforming the country’s manufacturing sector. These schemes focus on critical sectors such as electronics, pharmaceuticals, automobiles, and textiles to create ecosystems for sustained growth and ensure global competitiveness. These schemes have attracted ₹1.32 lakh crore in investments to significantly boost manufacturing output. More than 8.5 lakh jobs have been created directly and indirectly through this initiative.
India is now recognised as a key partner in high-tech and emerging technologies. Global companies are eager to invest in India, benefiting from the country’s manpower, management expertise, and improved infrastructure, which allows for efficient operations and competitive pricing in the global market.
Modernising infrastructure has been a key priority, with substantial investments leading to the development of modern highways, expressways, and world-class railway stations. India’s infrastructure spending has increased substantially. This year’s Union Budget allocated a record ₹11,11,111 crore capital expenditure that will have a multiplier effect on the economy and manufacturing.
Investor confidence in India is growing, with foreign CEOs and industry bodies regularly visiting, eager to participate in India’s growth story. For them, India offers the advantage of four Ds: Decisive leadership, demand from a 140 crore population, demographic dividend of a young workforce, and a vibrant democracy.
To support MSMEs, the government has taken numerous steps to improve the ease of doing business, including eliminating 42,000 compliance requirements and removing criminal penalties for minor offences. India has significantly improved its rank in the World Bank’s Ease of Doing Business report, rising from 142nd in 2014 to 63rd in 2019.
The Modi government remains committed to improving the ease of doing business, regularly consulting stakeholders to introduce new, innovative reforms. PM Modi is determined to promote investment, support businesses, and secure a bright future for India’s youth. The Make in India initiative is a major step toward achieving these goals.
Piyush Goyal is Union minister of commerce and industry.The views expressed are personal