By - Priti SehrawatStudent Hindu College, New Delhi
India is known for its lack of job opportunities. The country's economic growth hasn’t produced efficient jobs for its expanding working-age population, even at the impressive rates of the last decade.
"Make in India", an initiative program by the Government of India to encourage companies, to manufacture their products in India. It was launched by Prime Minister Narendra Modi on 25th September 2014 in a function at Vigyan Bhawan.
PM's headline-response has been made into a "Make in India" campaign to "transform India into a global manufacturing hub" and thereby making manufacturing as a vehicle for job growth. The plan includes a variety of measures from easing the regulatory burden to establishing special economic zones to awaken India's latent manufacturing power.
The objective of this initiative is to make India a renowned manufacturing hub for key sectors in economy needed for job creation and skill enhancement.Some of these sectors are automobiles, chemicals, IT, pharmaceuticals, textiles, ports, leather, tourism and hospitality, wellness, railways, auto-components, renewable energy, mining, bio-technology and electronics. The initiative hopes to increase GDP growth and tax-revenue. Companies across the globe would be invited to make investment, set up factories, expand their business in India and make use of India's highly talented & skilled manpower to create world class zero defect products. The mission is to manufacture products in India and sell them worldwide. This also aims at minimizing the impact on environment.
The campaign was designed by Wieden and Kennedy.
How this would be achieved
Skill development programs would be launched especially for the poor ones from rural and urban cities.
25 key sectors have been short listed such as telecommunications, power, automobile, tourism and others.
Skill certifications would be given to make training process. Currently manufacturing in India suffers due to low productivity rigid laws and poor infrastructure resulting in low quality products getting manufactured.
Over 1000 training centres would be opened across India in next 2 years.
For companies setting up factories, "Invest India" unit is being set-up in the commerce department which would be available 24/7.
The Indian government is giving priority to creation of high-quality jobs as a key to economic inclusion. India needs to achieve two objectives: creating new jobs and shifting more workers into high-productivity sectors. Meeting both can provide large economic headwinds to the Indian economy for several decades.
The campaign will change the scenario of employment in India and increase the future employment for the next 20 years. It would create more than 100 million additional jobs. Of those jobs, almost 70 million would come from high-productivity sectors, or a shift of 8 percent of the workforce."Make in India" campaign also add more jobs in manufacturing units and the output of the campaign in Indian Manufacturing would be in the range of East Asian countries like Indonesia, Malaysia, and China in the next two decades.
But the current trend will not meet the goal. The status quo implies that the preponderance of the labour force languishing in low-productivity sectors. This includes not only agriculture, but also construction, informal manufacturing, and traditional services.
The simulations first indicate that the "Make in India" campaign may have set unrealistically high goals for manufacturing growth and job creation. Even giving the campaign an extra three years to hit its targets would require unrealistically high growth rates.
In the future, the service sector is unlikely to transform into a substantial, high-quality job producer. There will be an increase in employment intensity.
Benefits and disadvantages
India is a country rich in natural resources. Skilled labour is available in plenty given the high rates of unemployment among the educated class of the country. With Asia developing as the outsourcing hub of the world, India is soon becoming the preferred manufacturing destination of the most investors across the globe. "Make in India" is the Indian Government's effort to harness this demand and boost the Indian economy. The campaign will help in creating job market for over 10 million people in India.
India ranks low on the "ease of doing business index". Labour laws in the country are still non-conducive to the "Make in India" campaign. This is one of the universally noted disadvantage of manufacturing and investing in India.
Criticism and Concerns
The NDA government's "Make in India" campaign has till early October attracted INR 2000 crore worth investment proposals. The campaign has found its fair share of critics. The topmost of these criticisms is levelled against the incumbent government. It has been felt that the government has been ignoringlabour reforms and policy reforms which are fundamental for the success of the "Make in India" campaign and has not been implemented yet. A number of companies such as Nokia India cast long shadows over the campaign and some technology based companies have processes to continue getting their components manufactured by China.
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