Make in India: A win-win for all stakeholders

July 5, 2016 5:27 pm

To be a truly factory hub for the world, India needs to ease the complicated tax structures.Ameer A Munaff, Managing Director, FEIN Power Tools India
  Foreign direct investment (FDI) into the country has been increased by 37 per cent to US$ 39.32 billion during 2015. Ameer A Munaff, Managing Director, FEIN Power Tools India Pvt Ltd believes that the main reason for the sudden surge in the foreign direct investment that can directly attribute to “Make in India” initiative is it offers a win-win state for all stakeholders.
Impacts of “Make in India”India launched “Make in India” program to create employment opportunities for it’s approximately 60 per cent youth of the total 1.25 billion population who are below 30 years of age. India’s GDP has been growing at about 7 per cent a year over the past one decade. The trade deficit has been growing steadily reaching 5.6 per cent of GDP in the fiscal year ending March 2016. Though the numbers look promising, India mostly exports products that are less trade efficient like rice, cotton, diamonds, garments, etc. meaning most of India’s manufacturing and exports, contribute a small fraction of the global trading commodities. The “Make in India” campaign was designed to push the manufacturing sector from the present 16 per cent of GDP to 25 per cent of GDP. The concept isn’t totally ripe yet to reap the benefits, although there is a sense of optimism that it can trigger manufacturing driven growth.
FEIN being one of the premium power tool manufacturers offering solution to the needs in metal, interior and automotive industries of all sizes, has started seeing the change in terms of the demand. As the industries are growing on a positive note, the demand has risen two-fold this quarter when compared to the last year.
“Make in India” to reduce imports, create jobs “Make in India” focuses on 25 sectors including defence manufacturing, automotive and components, aviation, machinery, etc. where several reforms have been initiated to boost manufacturing. Among these, electronics, defence manufacturing and aviation sectors can substantially reduce India’s major imports and sectors like infrastructure and agriculture are aimed at boosting domestic growth. This boost is expected to create more job opportunities.
Why all eyes are on IndiaThe main reason for the sudden surge in the foreign direct investment that can directly attribute to “Make in India” initiative is it offers a win-win state for all stakeholders. India offers cheap skilled labour to the MNC’s and they in turn offer employment for the Indian citizens. Indian government offers sops and benefits to the companies and given that India is one of the largest consumer markets, the benefits to the companies catering to Indian consumers are very high than in terms of importing. Abundant raw material resources too give a competitive edge in terms of low-cost manufacturing inputs, thereby reducing the overall cost of production.  According to the latest report, Foreign Direct Investment (FDI) into the country has increased around 37 per cent after the launch of “Make in India” programme till February this year.

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