Make in India Or Made in India

A 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 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 growth 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 so that India will pay for the technology in terms of licensing cost,
upgradation 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 doesn’t 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.