PM Narendra Modi enunciated the Make in India programme, which is a good public relations campaign and a long-term strategy to increase the share of manufacturing in GDP (from 16% to 25% in a decade) and to create 100 million jobs.
With unemployment rising and aspirational India demanding more of everything, it has become increasingly important to power up schemes and programmes that can deliver both growth and employment. However, the current ground level realities are not conducive. Here are the top 6:
1. The manufacturing sector is facing supply side bottlenecks.
2. There is demand constraint domestically and globally.
3. There is excess capacity in India and other emerging markets.
4. There are constraints faced by companies in India in doing business and getting crucial inputs.
5. There is debate on whether Make in India should be export focused or cater to the domestic market.
6. The import substitution strategy may not help India as the country is import dependent.
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