Make in India Campaign: Some Realities
- On May 2, 2015
Indian Prime Minister has launched popular business campaign “Make In India” in September 2014 with the aim of promoting India as a investment destination and to establish India as a manufacturing hub by attracting the global investors to India to make their products in India as the country has a huge potential of workforce, infrastructure, raw material and other facilities. Initially Government have been identified 25 sectors which have sufficient scope for wide investment in manufacturing sector. For resolving various issues of investors, Ministry of Commerce &Industry has set up on line query resolution system through its website www.makeinindia.com. To keep up the hype of the”Make in India” campaign, DIPP carried out publicity campaigns through digital media, Television and Indian Embassies abroad. Moreover Prime Minister Mr. Modi’s foreign visits boost up business friendly sentiment across the World.
“Make in India” campaign still on the rope, claiming huge FDI investments flooded to India during Oct 2014 to April 2015. In an RTI application replied by the Ministry of Commerce & Industry indicates the reality is something else ! Let we check those information in detail.
RTI Application &Reply
S.N |
Information Sought |
Information Available |
1 |
Status report of Make in India Campaign |
A note in regard of the information sought attached herewith( 1 Page general Info) |
2 |
How many International Corporate houses invested/investing in India under this campaign through PM’s foreign visits. Name, FDI amount, area of operation of those companies |
This information contains 179 pages. Requested to deposit xxx/- |
3 |
Since Make in India Campaign started how many corporate houses invested in India. Name, investment, area of operation of those companies |
No such data maintained in this department |
4 |
Expected/forthcoming FDI investments under this campaign |
No such target have been set up under this campaign |
5 |
What are the privileges/subsidies/facilities provided to them under this campaign |
This is a campaign to attract investors to invest in India under Make in India campaign |
6 |
What kind of/how much benefits, business opportunities, job opportunities etc. would be available for MSME’s, SHG’s in India under this programme through FDI’s |
No such targets have been set up under this campaign |
7 |
Details/status of clearance reports of those companies investing under this campaign |
Not applicable in view of the above reply |
8 |
How much employment opportunities, sector wise business opportunities are available under existing/present condition of this campaign |
No such data is available |
The information given by the Ministry simply indicates that what much advantages received under Make in India Campaign so far. Make in India Campaign received World wide appreciation on India’s business friendly approach and faster the administrative process of doing business in India. Moreover Indian government repeatedly announces that during Make in India Campaign FDI Inflows INR 123, 453.82 Cr. But RTI information on this matter shows that out of 8988 transactions of foreign account during October 2014 to April 2015, FDI inflows contains personal investments of NRI’s, payments on exports, and profit sharing by foreign collaborators etc. which are no way to associate with Make in India, though there is no significant/ large scale investment inflows during this time except few 1000+ Crore investments by automobile manufactures. Agreements and announcements are still sleeping on the papers and projected investments are making huge expectations at sky limit. It may be the reflection on the pending bills to ease doing business in India. But in the context of Make in India Campaign, analysis says that bureaucratic behavior is not changed as much along with administrative hurdles.
On the eve of Right To Information reply, it can be assessed that, Central Government has no focus on Make In India Campaign. According to Ministry, this campaign is just a promotional programme without setting any targets or focused marketing strategy. The most interesting thing on this matter is Modi Government has no idea about how to attract Global investors and make sure their investments are flowing in timely. Here one question arises, that how a foreign investor can invest in India on the basis of business friendly sentiment? Or just because of a campaign? It is very important that to set transparent rules, effective administration and efficient ground level systems to attract Global investors to motivate and bring their attention to invest in potential sectors rather promoting a campaign with unchanging hurdles and bureaucratic hypocrisy. Setting up a target and achieving those targets are as important as business promotion. No investor want to invest their money without proper signs of changes. The evaluation process considers the ways and means of investment flow and its basic setting up expenses and time. RTI information given by the Ministry showcase that ‘Make in India Campaign’ was just a blind concept of promotion with out any business targets and long term vision. That is the reason that this campaign has not made any significant investments in India during this period.
The propsed campaign can create adequate business and meet development requirements, on the same line there are other issues too. A bunch of foreign Investors are waiting to get their seats in the latest air bus. Yes, of course, Make in India campaign will be a lubricant to our growth engine. It can bring new job opportunities, increase standard of living, Infrastructure development, better connectivity, World class platforms etc. But the real question is little different from the point of view of its promoters. High end infrastructure development through PPP mode, heavy subsidized foreign giant’s entry, express land acquisition terms, quick approval and clearance system etc. are point to ponder along with current status of our GDP makers, say Small Scale Industries and cottage /SHG industries.
PPP mode Infrastructure development will make an additional cost to members of the public, also it increase cost per unit of MSME’s and SHG’s production. How much a Government can provide to these GDP makers in the form of subsidy or other benefits?
Subsidized Foreign entry will drastically affect existing human potential. In the short run it will bring huge opportunities, but fewer wage. On the other hand opportunities will flight MSME’s employees for better trade off. Why don’t we consider about the opportunities MME’s going to get? Sure; they get new orders, but in a highly competitive market, they won’t have any preference to bargain, it will reduce cost per sub orders for heavy Industries.
Land acquisition for business is a big problem here. On the mind set of business community, what they prefer initially? Obviously, the land which had high end resale value simply mitigate/assure the capital and profit if they face a ‘market loss’!
What would be the Sum total of Make in India Campaign in the short run and long run? To answer this question would be a difficult task right now. But we can assume, in the short time it can bring good infrastructure, employment opportunities, technology and experience. In the long run it may hurt our traditional structure of economy and living pattern of society. Because India itself a big market with a democratic system. It will be the real reason of foreign investors’ attraction. We predict they might started to chant a mantra which is with slight difference of what our Government chanting, would be like this ‘Make in India and Sell in India’.
Competency is the base rule to sustain, but fitness matters. The common issue of Indian MSME’S and cottage industries are many; including issues of adequate funding, management, strategies, market access and raw material availability etc. It is our Government’s duty to strengthen our GDP grower’s capacity, base lines and sustainability. citizensupport feel that it can bring only through collective actions with the help of technology, awareness and availability. It is the right time to assess our competency, courage and fitness to sustain, grow and enlarge.
Modi government should reconsider the position of this campaign and need to re-fix the base issues regarding administrative performance, ease of procedures, making lucrative opportunities etc. otherwise just a mere campaign cannot build any thing valid for the long term interests of India.