Make In India - Advantages and Disadvantages
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Advantages of Make in India
Let’s have a look at the some of the biggest advantages of Make in India
1. Develop Job Opportunities
One of the main purposes of the Make in India crusade is to provide job opportunities for as many citizens of India as possible. It has targeted the young generation of the country as its prime beneficiary. The investments in the targeted sectors, i.e. telecommunications, pharmaceuticals, tourism etc. will encourage the young entrepreneurs to come forth with their innovative ideas without worrying about the source of speculation.
2. Expand GDP
Due to the manufacturing of products in India, economic growth is inevitable, which will not only boost the trade sector but also will increase the GDP of the Indian economy as with the setting up of new factories and various investments being speculated in the Indian commercial sectors the flow of income will be humongous. Various sectors such as exportation, architecture, textiles, telecommunications etc. are likely to flourish inevitably, strengthening the Indian economy which is already the seventh-largest in the world.
3. Fortify the Rupee
The emergence of the manufacturing industries would automatically convert India into a hub for the fabrication of various commercial products; as a result, there would be a grand collection of the FDI, which, in turn, would strengthen the rupee against the domination of the American dollar.
4. Increase in Brand Value
Most of the urban population prefer international brands rather than putting their faith in Indian retailers. As a result, the small manufacturing companies suffer an extreme loss in the market.
Due to the Make in India campaign, such small manufacturers will be provided with a real shot at the business. With, companies investing in such small-time retailers from all around the world, the brand value of Indian merchandise will increase dramatically.
5. Up-gradation of Technology
India being an underdeveloped country obviously lacks various latest mechanization, which, is a big hurdle in the path to the development of the nation. Hence, with the myriad of countries coming forth by the make In India crusade, India will be given the opportunity to make use of the latest technology these countries bring along.
Not only will India benefit from the knowledge and use of the technology but also, the concerned nations will be provided with skilled and erudite labour.
6. Ease of Business
India is a nation that ranked 130th on the ease of doing business scale. But with the open invitation given to the entire world to manufacture their products in India, the various restrictions opposed by the entrepreneurs will be lifted and aspiring businessmen from all over the globe could invest in India with no stress at all.
7. Availability of Young Minds
Most of the young generation of India plans to move out of the country in the hope of a better future. Due to the lack of young labour, India has always been deprived of innovative and new ideas. With the Make in India campaign, the young population would not only be provided with employment but also their young and fresh minds would take the industrial sector to new heights. Making it a win-win situation for India as well as the concerned countries.
8. Development of Rural Areas
It is a well-known fact, that a factory set up not only improves a particular area but also provides for the locals with employment, thus the quality of life of people would automatically enhance. Amenities like schools, hospitals, and other public conveniences will be developed for the betterment of the public.
9. Flow of Capital
Since the beginning of capitalization, the Indian currency is being spent on foreign countries. With the introduction of make in India, the capital will not only remain in India but also the foreign currency will be provided to the nation as well. In a nutshell, India will not spend on foreign countries, but the foreign countries will spend on India in the form of investments and wages.
Disadvantages of Make in India
Now let’s have a look at the biggest disadvantages of Make in India
1. Negligence of Agriculture
The most negative impact of the Make in India campaign will be in the agriculture sector of India. It is a well-known fact that the Indian Territory has 61% cultivable land. With the introduction of industrial sectors, agriculture in India will be neglected somewhat.
2. Depletion of Natural Resources
Since Make in India is primarily based on manufacturing industries, it demands the set-up of various factories. Usually, such projects consume natural resources such as water, land etc. on a large scale. With the rapid devouring of such precious resources, India might be left with zero opportunity to replenish them, threatening the survival of such a large population in the near future.
3. Loss for Small Entrepreneurs
The Make in India campaign welcomes foreign countries to manufacture in India with open arms, this automatically eases up the various restrictions on trade with foreign countries, inviting the attention of the international commercial companies. However, these companies will not only seduce the Indian population but also would dominate the small local entrepreneurs and force them out of business.
4. Disruption of Land
As stated above, India is very rich in the agriculture sector. About 60% of the Indian soil is arable. With the emphasis being given to the Make in India campaign, thousands of companies would come forth to set up their factories on the land which could be used for cultivation. Eventually, this set-up of manufacturing factories would lead to the permanent disruption of the agrarian land in the near future.
5. Manufacturing based Economy
Indian economy is one of the largest economies in the world. It constitutes three sectors i.e. agriculture, industry, and services. Now the Indian economy majors up from the service sector which contributed up to 57% of the GDP. But with the introduction of the Make in India campaign, the economy is likely to rely completely on manufacturing and exporting while the import industry will remain static. This eventually will be a huge loss for the other economic sectors and would automatically reduce the advancement of Make in India.
6. Interest in International Brands
As stated earlier, the brand value of Indian merchandise will definitely increase. But the Indian upper class, which can actually afford such merchandise, is addicted to the foreign label. This will eventually become a big hurdle for the local entrepreneurs as a great level of promotion is required to build the confidence of people in the local brands.
7. Pollution
One of the biggest problems which are prevailing in India is pollution. According to statistics, India has a pollution index of 76.50. With the make in India movement, this pollution level is likely to arise in a couple of years. Eventually, making the condition in India worse. Hence, Make in India might be economically but it will have an inverse effect ecologically.
8. Bad Relations with China
The Indo-China relationship is already a problematic cause for the country, with the initiation of the make in India crusade, India stands as one of the most promising rivals for China. This automatically will worsen India’s long-term feud with China, gradually with the success of Make in India, it is possible for the situation to become worse among the two economically growing countries because India has the advantage of a young and skilled workforce over China which will expectedly take make in India to new heights in the near future.
On a concluding note, it can be safely stated that making in India is an opportunity for everyone. It is a prospect if given time will flourish like a spring flower and would provide the expected fruit.
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