A brave initiative known by the name of ‘Make in India’ taken by Prime Minister Narendra Modi during the initiation of the so-called campaign. Additionally Make in India is campaign began for the prime purpose of welcoming all the commercial segments from across the globe. This was to encourage them to manufacture products in India and sell as and where they want to. Here in this blog we will discuss on the make in India advantages and disadvantages. On 25th September 2k14, Make in India began and ever since it has been one of the greatest move in growth and development of the Indian economy.
However, just like any other thing ‘Make in India’ has got great perks for India and its economy. For this reason international organizations made a bold move in making massive investment in the project. Hence making India a nexus for manufacturing companies, it outruns USA and wraps a whopping total of $63 billion last year. Hence first we will begin with the advantages of make in India.
Advantages of Make in India
Let’s take a closer look at benefits of make in India
1. Provide mass employment opportunities
The biggest reason for starting the ‘Make in India’ is to offer employment opportunities for maximum Indian citizens. It focuses specially on the youth of the country as one of the biggest benefit. During the initiative there were massive investments such as pharmaceuticals, tourism, telecommunications etc. did motivated the young ventures (entrepreneurs) to come forward with their idea and so they did with the least worries about the speculation source.
2. Enhancing the neighborhood
For manufacturing in India, a specific industry needs a quite favorable location in order to set up factories with huge production units and big machineries. To fill in this gap, not just the areas that were opted to begin manufacturing in would be improved eventually also the nearing sites will be having a positive impact. It is a win-win situation for a developing country like ‘India’.
3. Boost GDP
The international products manufacturing in India is something due to which the economic growth is a sure thing, this hereby will not just enhance the trade but also will result into hiked Indian GDP of India and its economy. As more and more new factories are being set up and massive chunk of investments are being circulated in the commercial sectors of India, the flow of Indian economy will definitely witness a boom. Different sectors such as telecommunications, exports, textiles, architecture is sure to grow, hereby resulting into maximizing the overall economy of India which is acclaimed to be ranked at the 7th position in the world in terms of market size. Believed to be one of the biggest make in India advantages.
4. Securing the value of rupee
With the setting up of new manufacturing companies it would definitely help the India being a nexus for production of numerous products which would definitely have a positive impact on the huge accumulation of FDI. This would in turn would help in fortifying the rupee in contrast with the American dollar.
5. Expansion of Brand Value
Major chunk of the city population give the international brands a first preference in contrast with the Indian brands. Due to which, the micro organizations suffer a great loss in market. And with the inauguration of Make in India production companies will have a big scope for conducting business. So when the international companies across the globe, the brand value of Indian products will automatically enlarge.
6. Technology Enhancement
As India is a nation that is a developing economy it generally falls short on the most recent mechanics and technology. This is a big hindrance which cannot be overlooked specially in the development of the country. Therefore with the huge number of nations coming forward with Make in India initiative, India will be blessed with the updated technology these companies already have in their possession. This will not just bless our country with immense knowledge and perfect use of technology, the concerned countries will be offered with a massive labor that is both skilled and erudite.
7. Business Comfort
At present India sits at the 130th position in terms of comfortable business nations. However with the Make in India inauguration the whole world has come a step closer to make their products in India, so all the numerous restrictions imposed to the entrepreneurs will be set off and motivated businessmen from across the globe could make an investment with much ease.
8. Massive CapitalFlow
Right from the beginning the Indian capital has been heftily invested on the foreign nations. So with Make in India such a massive chunk of investment could stay in the country and the flow which is already huge will become humongous. So in a conclusion, India will have no need to inject the huge capital into the foreign markets in form of wages and investments.
Disadvantages of Make in India
Now it’s time to take a close look disadvantages of make in India
1. Agriculture Ignorance
The biggest disadvantage of Make in India is that the agriculture sector will be ignored. Despite the fact that India is blessed with an overall 60% cultivable lands, the setting up of industrial and commercial sectors, agriculture in India will be ignored to a great extent.
2. Exhaustion of Natural Resources
As Make in India is majorly based on setting up of manufacturing units, it urges the setting up of numerous factories. Frequently such huge projects make an exhaustive use of the natural resources such as land, water etc. on a massive scale. And not to forget the quick consumption of such non-renewable sources, India will have no scope for saving it. Hereby the survival of such a great population in the coming future.
3. Small Entrepreneurs Losses
The Make in India initiative welcomes the international countries to come and start production which will directly ease with the numerous restrictions over foreign trade. This will cause the multinational corporations. Nevertheless, such companies will have an impact on India but also would affect adversely the small entrepreneurs and have them their businesses shut their eventually.
4. Wrecking of Land
As mentioned, India is abundant in the agriculture sector. Approximately 60% of Indian soil is fertile. And with the entrance of numerous companies, they will set up their companies on fertile land which will be degraded. In a nutshell, this setting up of manufacturing units will cause the irreversible degradation of fertile land in the future.
5. Economy that’s based on manufacturing
Acclaimed to be one of the biggest economies in the world, India has three sectors such as services, industry and agriculture. India makes major chunk of its income from the service sector which contributes altogether for 57% GDP. However with the introduction of new companies, the load of GDP will be exports and manufacturing making the import industry comes at a standstill. A big loss for all the sectors which would cause the reduction of Make in India campaign.
6. Interest with the foreign brands
As mentioned above, the goodwill of the Indian produced goods will see a hike but the upper class society of India who have the capacity to buy such costly products, are keen on sticking to the international brands only. This will in the end can cause a big trouble for the entrepreneurs and local manufacturing organizations as a huge scale of promotion is the urgent need to create the customer confidence in local manufactured goods and services.
One of the biggest issue is that will be carried along with Make in India is pollution. India has a pollution index scale which indicates a shocking number of 77. So with the Make in India initiative there are huge probabilities that the number will multiply pretty soon in the coming years. Lastly making the situation even worse in our country. Therefore, Make in India is an economically sound initiative but will have equal and devastating effect on ecosystem.
8. Negative Relations with China
The relationship of India and China is already a chaotic scenario for the nation, and just to make the things even more twisted ‘Make in India’ is one of the most horrendous issues for China. This will then cause a furthermore damage to Indo-China relation, the slow and gradual success of Make in India for these two countries are nothing but a problem for the forthcoming years and generation. This is due to the biggest leverage India has, skilled workforce in comparison with China which will in the end make India to great progress in the future.
On a footnote, it can be taken as Make in India is a massive opportunity of each and every citizen of India. It is more of a prospect which if paid attention to can bloom like a spring flower and would offer unexpected returns. However the inauguration of Make in India movement, is an endless dialogue/discussion/delegation which has bagged the critic’s attention also which be of great help for the Make in India initiative. Hence coming down to all the advantages and disadvantages of make in India.