Make in India: A Failure of Ambitious Targets and Unfavorable Business Environment Explained by Kejriwal
- 8 months ago
The Make in India initiative was launched by the Bharatiya Janata Party (BJP) government in 2014 with the aim of boosting manufacturing in India and making the country a global manufacturing hub. However, the initiative has largely failed to achieve its goals.
Here are some of the reasons for the failure of Make in India:
Ambitious targets: The Make in India initiative set ambitious targets for the manufacturing sector, such as increasing its contribution to GDP to 25% and creating 100 million new jobs by 2022. However, these targets were unrealistic and unattainable.
Lack of focus: The Make in India initiative was spread too thin, covering a wide range of sectors from automobiles to electronics to pharmaceuticals. This made it difficult for the government to allocate resources effectively and achieve meaningful results.
Poor implementation: The government's implementation of the Make in India initiative was flawed. There was a lack of coordination between different ministries and agencies, and many of the promised reforms were not implemented on time.
Unfavorable business environment: India's business environment is still not conducive to manufacturing. There are complex regulations, a shortage of skilled labor, and unreliable infrastructure. This makes it difficult for companies to operate efficiently and profitably in India.
In addition to these factors, the Make in India initiative was also hit by external shocks such as the global economic slowdown and the COVID-19 pandemic.
As a result of all these factors, the Make in India initiative has failed to achieve its goals. The share of manufacturing in GDP has remained stagnant at around 15%, and the number of jobs created in the manufacturing sector has fallen.
The BJP government has acknowledged the shortcomings of the Make in India initiative and has launched a new initiative called Atmanirbhar Bharat (Self-Reliant India) in 2020. This initiative aims to reduce India's dependence on imports and boost domestic manufacturing. However, it remains to be seen whether the Atmanirbhar Bharat initiative will be more successful than Make in India.
Here are some of the reasons for the failure of Make in India:
Ambitious targets: The Make in India initiative set ambitious targets for the manufacturing sector, such as increasing its contribution to GDP to 25% and creating 100 million new jobs by 2022. However, these targets were unrealistic and unattainable.
Lack of focus: The Make in India initiative was spread too thin, covering a wide range of sectors from automobiles to electronics to pharmaceuticals. This made it difficult for the government to allocate resources effectively and achieve meaningful results.
Poor implementation: The government's implementation of the Make in India initiative was flawed. There was a lack of coordination between different ministries and agencies, and many of the promised reforms were not implemented on time.
Unfavorable business environment: India's business environment is still not conducive to manufacturing. There are complex regulations, a shortage of skilled labor, and unreliable infrastructure. This makes it difficult for companies to operate efficiently and profitably in India.
In addition to these factors, the Make in India initiative was also hit by external shocks such as the global economic slowdown and the COVID-19 pandemic.
As a result of all these factors, the Make in India initiative has failed to achieve its goals. The share of manufacturing in GDP has remained stagnant at around 15%, and the number of jobs created in the manufacturing sector has fallen.
The BJP government has acknowledged the shortcomings of the Make in India initiative and has launched a new initiative called Atmanirbhar Bharat (Self-Reliant India) in 2020. This initiative aims to reduce India's dependence on imports and boost domestic manufacturing. However, it remains to be seen whether the Atmanirbhar Bharat initiative will be more successful than Make in India.