Make In India | Failure or Success? | Complete analysis of MAKE IN INDIA

Make in India initiative announced by Indian Government on September 25 , 2014 to encourage manufacturing in India and galvanizing economic sector of India. Many investment had done in manufacturing and services. Immediately after the launch many crore rupees investment announced. Now the India became a better place for investment , surpassing other countries like U.S and China. After all this many states also announced their own initiatives. The idea of " MAKE IN INDIA " is not new it has a long history many Factory production has a long history , this initiative set a new ambition for manufacturing and production of goods but after so many years we can see the change what happened ? 

MAKE IN INDIA previous version 1.O is successful or not ?

Was MAKE IN INDIA 1.O successful ? We start this initiative that we will manufacture all things in India and became self reliant but what we are doing only assembling the products not producing. We cannot say that MAKE IN INDIA is totally flop it assembling products also requires labour so it gives employment to many of Indians but we cannot say that MAKE IN INDIA 1.O is successful so now Indian after government come with " MAKE IN INDIA 2.O ".

 Before this pandemic situation is different people not thinking about all this but after all this worse situation we realize that self reliant is necessary in all field we should decrease our dependency on other country specially on China. Where India is totally dependent on China for electrical products about 74% electrical market is covered with Chinese product why? because they provide cheap product , people prefer price rather than quality. Slow economy rate is also a reason of all this we all time focuses on investment from foreign companies and forget about manufacturing of goods in India.

 Our textile industry is such a big industry where we can do investment and it will definitely gives a boost in economy because in textile we also can export products in other countries where they have huge demand. After this pandemic people prefer Indian products rather than Chinese products so this is the time when we can boost MAKE IN INDIA initiative . That's why government came up with new plans.

MAKE IN INDIA 1.O vs MAKE IN INDIA 2.O !!!!!

Where in previous version we deflect from core idea of make in India and just only assembling products here not producing so now government Start giving light to small producers so they can produce and assemble all things in India. The new version of MAKE IN INDIA  seeks to protect domestic manufacturers and push them up the value chain. MAKE IN INDIA is likely to press accelerator on vertical integration where the components of supply chains coerced  to be local because of import substitution. 

Pharmaceutical supply chain

 We know that India is a largest manufacturer of medicine , but the raw material for medicine is imported from China a large amount of raw material is imported so here comes one problem because in past years China increase their API rate by 30-40 % so the final product rate also increased , reason given by China is pollution norms. In 80's India produce their own raw material but different types of acts pollution acts , water acts there are certain norms due to this India than start importing raw material from China. But now in new version India start producing raw material for pharmaceutical industry.

Trade deficit

From the record of past 5 years we can clearly see that about 507.44 billion dollars import we have done on past years and about 331.02 billion dollar export we done in past years so we can clearly see trade deficit which is more 150 billion dollar so this trade deficit has a major part from India- China trade relationship. 

MAKE IN INDIA 2.O focuses on 10 sectors.

Here are the following sectors on which Make in India 2.0 will focus.

Capital goods, Auto, Defence , Pharma, Renewable energy , biochemical, electronics system design , manufacturing sectors, Jewellery , Construction , shipping and Railway.

This is better time for us that we should enhance our own manufacturing units rather than dependency on other countries where our software section already on the edge so this time is for manufacturing industries.

Jai Hind