Make in India & India’s Exports

What does ‘Make in India’ compaign means to the future of India’s exports? Is there a deeper impact of Make in India than what comes to our mind out of the first thought about it? Is it only about creating more employment? Is it only about having a vibrant industrial set up? What about the world standards? What about the design and R & D facilities? There are a number of questions related to assessing the real impact of Make in India campaign. It is not just about getting more FDI in greenfield projects, getting manufacturing of VLSI chips or mobile phones to be sold in a large Indian market. Make in India is a very serious concept which can change the fortune of India on the world stage within a foreseeable future. In the words of Shri Kumar Bali, Managing Director of Volvo India while speaking with the students of ITS recently, he explained that Make in India is already there to see and feel in the large and medium industries. For example, Volvo India is already designing vehicles for the world market, in India. The concept has motivated the industries to rethink their business models, to add capacities, run more shifts to cater to world market and not just India. GM, VW and Ford has already increased their production and running more shifts to cater to export markets.

In other words, Make in India has made the country, a serious contender for becoming the manufacturing base for export markets. The future of exports from India was never so bright in last more that 100 years. SMEs will also be included soon in the game as they are not only going to get deemed export orders but will also be able to export intermediate products directly to world markets. What they now need to urgently do is to prepare themselves for the biggest opportunity India has got after independence to attain an important position in world’s production and probably eradicate extreme poverty, entirely.

Shri Kumar Bali also rightly pointed out that we should not be too optimistic about the so called natural demographic dividends which India seems to be having, being relatively a younger nation than others. More than 60% of these young Indians are unskilled and if they are not brought into the mainstream of this production opportunity, this demographic dividend has the potential to become a liability for the country. Already signs of this potential disaster are visible in the form of recent job quota stirs in different parts of the country. ‘Skill India campaign’ which is rightly envisioned by our current PM, should be taken to its next level to avoid this disaster.

Therefore a combination of right policies around Make in India campaign can ensure India becomes the world hub of production of not only just auto sector but also other sectors like pharmaceuticals, biotechnology, nanotechnology, textiles, defense equipment, R & D outsourcing, light engineering goods, jewellery and even medical equipment.