Make for India (or) Make in India!
Grammatically it is just a preposition that is the difference - 'For' or 'In'. Would it make a difference? Lets understand it from economic stand point of view. Way back in 2014 when Raghuram Rajan was Indian RBI governor, he suggested that 'Make For India' would be a better strategy for India rather than the PM Narendra Modi's 'Make In India'. Primarily this was because India has a high domestic consumption and demand driven due to its demographic advantage (average age of Indian population being around 28 years).
It is obvious that India does not want to become another China whose economy is driven by huge exports and investments. The proportion at which Chinese companies production to consumption is way too much and this leads to export driven economy. On a contrast, Indian economy is driven by its domestic consumption. 'Make In India' approach might lead India to follow the foot steps of China by exporting the surplus inventory. Is this needed, when China is already producing what the demand for the rest of the world? In simple words, will the world economy be able to accommodate another export led country like China? Answer tend towards a definite 'No'.
Another argument is that India are lagging behind at least 30 years in their new strategy of 'Make In India'. When robots are manufacturing across the world, we need to rely on humans to act as laborers. The idea behind this strategy is to generate the jobs in India rather than to give away the jobs to robots. But unfortunately the corporate investment has not been substantially good in the manufacturing sector. Is it correct to blame the banking sector for not lending the money? Or should we say the lack of will among the corporates to invest now is less, owing to AI pick up? Is it that the corporates are too biased towards one party rather than the other?
Good intentions by our current PM followed up with the right strategy is being misunderstood. Yes we need a start somewhere, even though we are lagging behind by 30 years. Unfortunate thing is our bureaucratic process to pass any parliament bill is time consuming. With all these hindrances, India is still being looked at the most promising economy in the world, thanks to our consumption capacity. This domestic consumption demand is what we need to produce for (i.e. Make for India) rather than look at import reduction or export driven strategy as per Raghuram Rajan.
Irrespective of what we call it - 'Make in India' or 'Make for India', the time to bring in the change has come. Can India rewrite a new business model leveraging the knowledge taken from its IT services model for the futuristic economy?
It is obvious that India does not want to become another China whose economy is driven by huge exports and investments. The proportion at which Chinese companies production to consumption is way too much and this leads to export driven economy. On a contrast, Indian economy is driven by its domestic consumption. 'Make In India' approach might lead India to follow the foot steps of China by exporting the surplus inventory. Is this needed, when China is already producing what the demand for the rest of the world? In simple words, will the world economy be able to accommodate another export led country like China? Answer tend towards a definite 'No'.
Another argument is that India are lagging behind at least 30 years in their new strategy of 'Make In India'. When robots are manufacturing across the world, we need to rely on humans to act as laborers. The idea behind this strategy is to generate the jobs in India rather than to give away the jobs to robots. But unfortunately the corporate investment has not been substantially good in the manufacturing sector. Is it correct to blame the banking sector for not lending the money? Or should we say the lack of will among the corporates to invest now is less, owing to AI pick up? Is it that the corporates are too biased towards one party rather than the other?
Good intentions by our current PM followed up with the right strategy is being misunderstood. Yes we need a start somewhere, even though we are lagging behind by 30 years. Unfortunate thing is our bureaucratic process to pass any parliament bill is time consuming. With all these hindrances, India is still being looked at the most promising economy in the world, thanks to our consumption capacity. This domestic consumption demand is what we need to produce for (i.e. Make for India) rather than look at import reduction or export driven strategy as per Raghuram Rajan.
Irrespective of what we call it - 'Make in India' or 'Make for India', the time to bring in the change has come. Can India rewrite a new business model leveraging the knowledge taken from its IT services model for the futuristic economy?
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