TS Darbari Blog: Spurring the Economic Growth with ‘Make in India’ & ‘Atmanirbhar Bharat’
TS Darbari says that with a vision to transform India into a manufacturing hub and to make its market self-dependent and self-sufficient, Hon’ble Prime Minister of India made the clarion calls of ‘Make in India’ and ‘Atmanirbhar Bharat.’ TS Darbari further adds that the objective of both the initiatives is to invite various commercial sectors from all around the world, to engineer their products in India and sell them anywhere they wish. The crusade had instigated on 25th September 2014, and since then has emerged as one of the grandest triumphs of the Indian economy.
Explaining the objective of ‘Make in India’ and ‘Atmanirbhar Bharat, TS Darbari says that “Our Hon’ble Prime Minister Narendra Modi launched the Make in India initiative on September 25, 2014, with the primary goal of making India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country.”
TS Darbari says that both the policies ‘Make in India’ and ‘Atmanirbhar Bharat’ seem to benefit the Indian economy in their respective ways. On one hand, ‘Make in India’ will boost foreign investments in the economy and on the other, ‘Atmanirbhar Bharat’ will help the country being self-reliant in terms of manufacturing of products. Therefore, a logical route is needed to be adopted.
TS Darbari adds that India is expected to be the third largest consumer economy as its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer behavior and expenditure pattern, according to a Boston Consulting Group (BCG) report; and is estimated to surpass USA to become the second largest economy in terms of purchasing power parity (PPP) by the year 2040, according to a report by PricewaterhouseCoopers.
TS Darbari further explains that with this initiative, Mr. Modi is literally inviting the rich and semi-rich countries to step in India and invest their money for the future of India. It’s like inviting the countries to set up their companies in India and manufactured in the territory of our country. Sell everywhere but manufacture in India sums it up all.
“The movement was further boosted with bringing in an import ban on numerous defence products. Since India has been heavily dependent on foreign nations to fulfill its Defence needs, the step has been appreciated widely by the scholars. Such initiatives will encourage the domestic industries to flourish with the technological support of foreign institutions and will also boost the export the state-of-the art defence products manufactured in India. It will have an lasting impact on the growth of Indian economy creating millions of direct and indirect jobs along with forging a self-sufficient sustainable environment for manufacturing and export industry which will further boost the employment opportunities and curbing the brain drain from India,” says TS Darbari.
According to TS Darbari. “Many foreign companies making the investments in Make in India project thus having a great impact on the economy of India. Obviously, if the big companies will set up their branches here, it will directly affect the GDP of India. So if you are planning to start your business in India by making an investment in Make in India then first read these effects of Make in India over the economy:
India ranked 100 among 190 countries assessed by the Doing Business Team in the Ease of Doing Business Report, 2018 with an improvement of 30 ranks over its rank of 130 in the Ease of Doing Business Report 2017. India saw an improvement in six out of ten indicators namely — Dealing with construction permits, getting credit, protecting minority investors, paying taxes, enforcing contracts and resolving insolvency.
These improvements in rankings have been a result of various reform measures undertaken by the Government including Structural and deep-seated reforms such as Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC); reforms aimed at strengthening India’s institutions — Demonetization, mechanism for inflation targeting via the Monetary Policy; progress in Aadhaar enrollment and use in targeted delivery of benefits; and announcement of the Government’s decision for recapitalization of public sector banks.”
Benefits of ‘Make in India’ & ‘Atmanirbhar Bharat’ Initiative according to TS Darbari
1. Make in India initiative helps in creating jobs for ever increasing population of India.
2. Conversion of India into a manufacturing hub of various commercial products.
3. Development of the areas and the neighboring locations where the industries would be set up.
4. The program will boost the GDP of the Indian economy as foreign investments will lead to humongous flow of income.
5. The FDI under this initiative would strengthen the rupee against the domination of the American dollar.
6. As countries from all over the world will bring along latest technology, India will have an opportunity to make use of it as it lacks in various test mechanization.
7. Setting up of industries under this initiative will help in the development of rural areas.
Limitations of ‘Make in India’ & ‘Atmanirbhar Bharat’ Initiatives
TS Darbari says that though one may be baffled by the bewildering benefits of ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, it does not mean that these initiatives don’t have any fly in the ointment. There are a few drawbacks that have been mentioned here by TS Darbari based on reports already available online.
1. Under Make in India campaign, all the focus lies on the manufacturing sector. So this causes a negative impact on the agriculture sector of India.
2. As setting up manufacturing industries requires natural resources like land, water, etc on a large scale. So, there is a possibility of depletion of these natural resources which can threaten the survival of such large population of India.
3. Entry of foreign countries into the manufacturing sector in India has caused a threat to the existing small local entrepreneurs and might force them out of business.
4. A wide disruption in the agricultural sector due to the utilization of land primarily for setting of manufacturing industries.
5. Tough competition leads to lowering of returns on FDI and results in outflow of capital from the economy.
6. Unemployment will be created if the foreign investors back out from the initiative
Who is TS Darbari?
TS Darbari is a top management professional, with several years of rich & diversified experience in Corporate Strategy, New Business Development, Sales & Marketing, Commercial Operations, Project Management, Financial Management and Strategic Alliances.
