Question

What should be preferred - made in india or make in india ? Write an article expressing your views.

Answer 1

Make in India Or Made in IndiaIntroductionA new topic storming people's brains is 'make in India or made in India'. As Narendra Modi launched a campaign for 'make in India', many thinkers have become vocal about its pros and cons. 'Make in India' is mostly about emulating china in export led, growth oriented economy as china is facing hurdles like growing cost of labor and post-market servicing. While 'made in India' emphasizes more on industries based on home-grown technology.Make in India•Attractive destination for investors- India is basically a service industry which is trying to move its focus away from the tertiary sector of the economy to the manufacturing sector. Keeping this goal in mind, 'make in India' campaign was launched to attract more foreign investment by removing obstacles like the remaining traces of the license raj, fast sanction of projects from the bureaucratic web, etc.•Employment- It will also help to solve the problem of employment needs of our growing population.•Economic boost- On the economic front, it will boost trade and provide linkage with the global supply chain and will reduce the current account deficit.•Infrastructure development - It can expand the investment in infrastructure development.Made in India•Paying for technology - But on the other hand, it has many disadvantages too. 'Make in India' will just import the technology so that India will pay for the technology in terms of licensing cost, up-gradation cost, etc. Also, India does not have any control on the source of a company's raw material supplies. The outsourcing company bounds India by contract and does not share its secrets.•Competitive advantage - Another drawback will be, if some competition comes, say from Africa or south America, where the conditions become suitable for manufacturing, then these companies can shift their base from India causing a significant number loss of employment.•Emergence of geographical identity brands- Made in India can be an answer to these questions. It can encourage entrepreneurs to start up their business and be a part of the global skill pool as India lags behind in “home-grown brands” like German cars, swiss chocolates and British scotch.•Political reasons - Made in India will provide strategical benefits in terms of defense and nuclear energy sector which are crucial from the political perspective.•Encouragement of R&D - Finally, India can benefit from technological advances by industrial revolution.Conclusion:Make in India and made in India both can be beneficial for India. India can benefit temporarily from outsourced manufacturing plants but it can not stress it beyond a limit. It should rather focus more on encouraging research and development and bringing industrial innovation. Make in India should be a start to achieve the long term goal of made in India.