write your views for " vocal for local " good or bad
Answers
Explanation:
Prime Minister Narendra Modi’s latest slogan ‘Be vocal about local’ is built on both the reform agenda of Narasimha Rao and Vajpayee’s infrastructure focus to address a serious weakness in the India growth story ― low share of manufacturing in the country’s GDP vis-à-vis China.
The weakness is crucial. All the big talk of consumption- and service-led growth of the previous decade ended in creating low value-addition potential. Despite high growth numbers, India created fewer job opportunities. The situation was perfectly summed up as “jobless growth”.
Ever since Modi assumed power in 2014, he wanted to correct it by tapping new value-added opportunities (Digital India), promoting entrepreneurship (Stand-up India and Start-up India), and paving the way for domestic manufacturing (Make in India).
While the start-up ecosystem definitely improved in India, the drive to give a push to manufacturing witnessed limited success.
Make in India
This is partly due to domestic reasons ― like poor infrastructure, archaic legal ecosystem leading to low ease of doing business in majority of States, and constraints in availability of land which became highly complicated following the 2013 amendment in the Land Acquisition Act, among others.
To top it, the prevailing global trade and investment architecture foiled India’s attempts to promote manufacturing.
For example, India had undertaken the rapid solar capacity addition programme with an eye on domestic manufacturing. However, a 2016 WTO ruling went against Indian interests. Though India finally won the case in 2019, Chinese gear makers made good use of the time in grabbing majority share of the Indian market.
A bigger concern was China’s ability to offer cheap finance to buyers and/or churn out products at abnormally low cost. The global concentration of active pharmaceutical ingredient (API) manufacturing in China is a case in point.
In private, Indian policymakers, industry and experts in global consulting firms often blamed it on the opaque financing systems in China that leaves scope for disguised State subsidies.
However, there was no way they could speak of it in the open. This was either due to lack of proof or due to the muscle power of China.
Over the last few years, India tried to break open this Chinese defence by taking advantage of the trade war unleashed by the US, simmering tensions between China and its economically powerful neighbours, and growing concern among global businesses about the flipside of putting all eggs in one basket.
The effort was partly successful. For example, a high duty wall reduced the import of finished electronic goods, including mobile phones, drastically. But the gains were limited to the extent of shifting assembling jobs to India. Many or most components are still imported from China.
Imposing barriers on import of goods from China is not enough either. China preempted such moves and acquired capacities ― directly or indirectly ― in countries, which enjoy trade advantage in the WTO regime.
ᏢᏝᎬᎯᏕᎬ ᎷᎯᏒᏦ ᎯᏕ ᏰᏒᎯᎨᏁᏝᎨᏕᎿ
#ᏢᎨᏦᎯᏨᎻᏬᏬ