Come, make in India, the new Prime Minster Shri Narendra Modi exhorted the world in his maiden Independence Day address from the Rad Fort of Delhi. Be it plastics or cars or satellites or agricultural
products, come make in India". "We
should dream of 'Made in India' products across the world. He is inviting multinational firms to set up
manufacturing bases as part of his biggest push to fix in one go multiple economic problems
including low employment generation, slow GDP growth, high inflation rate and
high trade deficit. He emphasized that it is need to encourage the
manufacturing and to channelize the strength of the youth through
manufacturing.
The
revival of manufacturing is the biggest challenge for the new government as the
high inflation has kept interest rates high, impacting investments and demand. The first time since
1991-92 economic growth is the lowest in a
decade, industrial growth has frozen and job growth has dried up. Meanwhile,
infrastructure development has slowed and the fiscal deficit hangs like
Damocles' Sword. There are a number of challenges which the economy is facing in the
realms of basic necessities of life.
India's manufacturing activity contracted 0.7 per cent in 2013-14. Imports of the country is increasing year by year and averaged 5921.34 USD Million from 1957 until 2014, reached an all-time high of 45281.90 USD Million in May of 2011 and a record low of 117.40 USD Million in August of 1958. The country is heavily dependent on coal and foreign oil imports for its energy needs, machinery, gems, fertilizers and chemicals.
Exports in India is also increasing and averaged 4042.16 USD Million from 1957 until 2014, reaching an all-time high of 30541.44 USD Million in March of 2013 and a record low of 59.01 USD Million in June of 1958. India’s main exports are engineering goods, gems and Jewelry, chemicals, agricultural products textiles and services. India is also one of Asia’s largest refined product exporters with petroleum.
India
recorded a trade deficit of 12228.60 USD Million in July of 2014 and Balance of
Trade averaged -1879.18 USD Million from 1957 until 2014, reached an all-time
high of 258.90 USD Million in March of 1977 and a record low of -20210.90 USD
Million in October of 2012. The country had
been recording sustained trade deficits due to low exports base and high imports
of coal and oil for its energy needs.
He exhorting industry to Make India the manufacturing hub of the world will
mean higher exports from the country and lower imports, reducing the trade gap.
The 'Make in India' and 'Made in India' vision will be supported by requisite
policy and implementation measures for enhancing the competitiveness of our
manufacturing sector. We should strive to be a nation that does not import, but
exports. The youth of the country should neither depend upon imported products
nor compromise with the quality of product.
Modi's
speech is visionary and path-breaking because manufacturing is necessary for
employment and for trade expansion. In order to achieve this, the government
would need to address issues such as reforms in taxation policy, including
introduction of the GST, land acquisition, faster approvals, trade policy, etc.
It is
a welcome sign to promote more engagement between the States & foreign
countries in relevant fields. This initiative of the
centre will provide for better federal structure and good initiatives by the
concerned states. Our
missions now will be required to pay much attention to trade and commerce
beside usual political relationships between nations. It is one of the best
ways to contribute by individual state and people to develop their nation.
Modi is right to
invite MNCs to manufacture in India so that the countrymen can have employment
using their skills. The similar message he has given from the rampart of the
Red Fort on Independence Day. Hope this will keep going in positive direction.
Wish you all the best wishes!
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