The `Make in India’ (MII) slogan is derived from the objective of manufacturing products in India. It would require large investments to make things in India in adequate quantities to meet the job-creation objective.Products made in India will have to be capable of being sold profitably.
The Indian market is becoming increasingly competitive, and without exporting a sizeable part of goods made in India, we will not be able to generate enough employment. Thus, conditions must be created to make it possible to manufacture competitively in terms of cost and quality, in India.
There is a need to take steps to instil confidence in investors to enter manufacturing.These would include making it much easier to carry out business, easing the tax administration regime so that it is perceived as predictable and fair, improving infrastructure, increasing energy supply, ensuring quicker environmental and other clearances, enabling one to obtain land in a simpler and quicker manner and other similar measures.
The investments needed in manufacturing and infrastructure are of a magnitude that cannot be met only by domestic sources. Most foreign investors have, till now, stayed away from these two sectors because of the difficulties in conducting business in the country and the resulting lack of competitiveness of production.This deficiency has to be overcome.
The Prime Minister’s foreign tours, especially to countries that have both technology and capital to invest, have changed perceptions about the government’s intent and desire to implement policies. Changes are now required, at the operating level, for investment to flow into India.
However, the supply chain for the automobile industry is still a constraint. Small scale industries are no longer capable of producing the quantity and consistent quality required to meet global standards due to limitations of capital, skilled manpower and technology. The problem needs to be solved.
Inclusive growth will never be possible unless our rural surplus can be productively employed. This can only happen in the manufacturing and service sectors needed to support the production, sale and after-sales requirements of products.