Make in India: How to succeed
India’s Prime Minister Narendra Modi has launched the “Make in India” initiative, which is aimed at increasing the manufacturing output within India. This is a welcome step towards harnessing India’s large labour force and resource base. However, the manufacturing sector in India has lagged in recent years, and to succeed several reforms are necessary to unlock the potential of India’s manufacturing sector.
Rebooting India’s manufacturing sector is a challenging but essential task. India has a huge potential for manufacturing a wide range of products ranging from traditional and cultural-related products to the most modern sophisticated products. Many of these products have good export potential that can be exploited. The example of the auto sector is a lesson to follow. India has become a major producer and exporter of automotive products including a wide range of 2, 3 and 4 wheelers and components. This has happened as a result of liberalization and integration into the global economy.
The “Make in India” campaign needs the widest possible support to succeed. The central and state governments, business and industry, and labour organizations must work together to achieve this goal.