For ages, Indians have prided themselves on their accomplishments in history and cosmopolitanism. However, in the last ten years, the country has also been in the news for bringing considerable changes to the manufacturing sector. Focus on manufacturing, however, started in 2014, right after Prime Minister Narendra Modi reiterated the call to ‘Make in India’. The aim was straightforward: enhance the country to become a center for production for the world. With close to a decade gone, the question still lingers, is ‘Make in India’ a reality, as it was promised to be?
What is Make in India?
The ‘Make in India’ campaign is a government initiative which encourages businessmen to make their products in India itself. This is expected to create more employment opportunities, encourage economic growth, and less dependence on imports. Such machines are made traction drive, as well as in automobile, textile, electrical, genetic healthcare and more. More industries like these are expected to help infringe upon the global market competition.
Achievements of ‘Make in India’
Below are some notable accomplishments have been evidenced in the ‘Make in India’ initiative over the years.
Greater Foreign Investments: One of the most prominent of them all is the growing foreign direct investment (FDI) into the Indian economy. From 2014 until 2021, FDI climbed upward all the way into India, indicating how investors all over the world are in the country. This has seen countries like the United States, Japan, and Germany among many enter India and build manufacturing industries.
Growth of Manufacturing Sector: The manufacturing sector has expanded tremendously, particularly in the sectors of automobile, electronic and mobile phone manufactures. Today, India ranks among the highest mobile manufacturing countries in the World. Moreover, domestic manufacture of electronics has considerably increased thereby lowering the import of such products.
Job Creation: There has also been an increase in job openings due to increased manufacturing activities. Numerous direct and indirect employments have been created primarily in regions like Maharashtra, Gujarat and Tamil Nadu. New investments and factories have assisted these areas economically creating employment for many people.
Enhanced Facilities: To encourage manufacturing, the infrastructure has been improved in the recent past. More roads, highways, and industrial corridors have been constructed. The ports and airports are undergoing modernization to enable handling of increased exports. This has motivated more companies to engage in manufacturing in the country.
Challenges Facing ‘Make in India’
Despite these achievements, ‘Make in India’ is still beset by multiple issues that do not allow it function to full capacity.
Bureaucratic Hurdles: In India, one finds a problem in the fast-decision-making processes. Even though reforms have come and many changes have taken place, for most investors, especially those in the foreign direct investment space, the bureaucracy is an investment argument. Sometimes, a firm is able to secure finance, but it is unable to commence operations due to delays in getting approvals, licenses, or permissions necessary to embark on its projects. These delays in the approval process adversely affect the initiation.
Lack of Adequate Skilled Labor: India is a country with a very large population and therefore a huge labour input but also has a dearth of skilled labour in so many industries. This gap in skills is a significant problem in advanced manufacturing processes as appropriate personnel are hard to come by. The government initiated the Skill India scheme to ameliorate the issue but the progress has been sluggish.
Elevated Expenses in Production Process: Even though India provides inexpensive labour, other expenses such as power, common materials, and transportation are still expensive. As a result, production in India is less favourable than in countries like China or Vietnam. Given these costs, many of the companies’ manufacturing still takes place outside India.
The Road Ahead
While ‘Make in India’ has made significant strides, there are many obstacles that still remain. In order for the country to achieve its aim of becoming a global manufacturing hub, the government has to solve the existing barriers. It will be imperative to cut red tape, invest more resources into the creation of a skilled labour force, and create competition in the costs of production.
Moreover, India needs to look ahead and adapt modern technologies like automation, artificial intelligence and; robotics. This will help the country in the adoption of better and more productive ways of carrying out the manufacturing processes.
Finally, improving the business environment will help increase the number of foreign companies entering the country. Simplified processes, quick approval, and proper legal structure, will encourage investors to make India their preferred destination for manufacturing.
Conclusion
‘Make in India’ is one of the positive schemes towards the manufacturing sector of India in the years to come. It has helped attracted investments, leading to the creation of employment opportunities and improvement of overall systems. Nonetheless, in order to succinct achieve this vision, the private and government sectors have to join hands to tackle the obstacles in place. A complete macroeconomic and microeconomic political strategy will allow India to achieve its true potential as a manufacturing ecumenic hub.