It’s been a remarkable 10-year journey, which gave renewed vigour to industrial sectors turning these into engines of growth, meeting domestic demand as well as contributing to exports. The exciting journey began at a difficult time, when domestic investors were despondent because of the policy paralysis and poor governance by the indecisive Congress government. The economy was down, confidence was shattered, headlines were dominated by a regular dose of corruption scandals, inflation was soaring, interest rates were high and the rupee had an uncertain outlook.
To end the feeling of doom and gloom, the Indian voter decisively voted for PM Modi. Our Prime Minister came with a vision for India. He wanted to ensure that India becomes a global superpower. He wanted India to provide jobs and opportunities to the youth, recognising that manufacturing was critical to the country’s success story. That is when the PM launched the ‘Make in India’ initiative.
Ten years has been a remarkable journey, but it would not have been possible but for the multidimensional and transformative changes done by the Modi government. Initiatives include GST, the Bankruptcy Code and a multitude of other reforms. To improve ease of doing business, as many as 42,000 compliance requirements were done away with and 3,700 provisions which provided for criminal penalties for minor offences were removed from various statutes to protect small businesses from harassment. India sharply improved its rank in World Bank’s Doing Business report – from 142 in 2014 to 63 in 2019.
The government’s Startup India initiative has encouraged many job seekers to become job creators. This has helped the number of recognised startups increase to 1,40,803 in June this year, bringing in investments and creating more than 15 lakh jobs. These startups are driving the innovation ecosystem in the country, working on solutions to pressing issues in areas such as sanitation, space navigation, reducing food wastage, improving access to healthcare and empowering women.
The development of 11 industrial corridors is another focus area.There are 20 industrial smart cities being developed under the programme, which would help make these corridors the backbone of India’s manufacturing growth. Four of these smart cities have already become magnets of investment with infrastructure and clearances available to set up manufacturing units. Potential investments of ₹1.7 lakh crore are already committed which will provide direct employment to 80,000 persons and indirect to many more. The government’s PLI schemes focus on critical sectors such as electronics, pharmaceuticals, automobiles, textiles and medical devices to create the eco-systems for sustained growth and ensure their global competitiveness. The PLI schemes have resulted in ₹1.32 lakh crore in investment and a significant boost in manufacturing output of around ₹11 lakh crore. More than 8.5 lakh jobs have been created directly and indirectly through this initiative.The PM’s initiatives on infrastructure have been another shot in the arm for manufacturing. Apart from generating demand for goods and services, infrastructure development is a major facilitator of industrial activity. Today, India has a huge, and growing, network of expressways and highways. New, world-class railway stations are being built, while new freight corridors are coming up.
India is increasingly being seen as a very attractive destination for investment. The country provides the 4D advantage – Decisive leadership of PM Modi; Demographic dividend of our youthful, talented, skilled Indians; Demand that 140 crore Indians generate in the economy; and Democracy that ensures the safety and security of investors, and the rule of law which will never allow discrimination against one or the other. The 4D is a very, very compelling case to attract manufacturers to India.
There is a flurry of activity in the investor community. A series of delegations is visiting India, hungry for opportunities to invest and participate in the Indian growth story. Foreign governments and global CEOs are eyeing opportunities in India. Many countries are keen to sign trade deals with India.
The world is now looking at India as a manufacturing destination. And the key reason is India’s own competitive advantage, and robust economic fundamentals. Today, inflation is under control, economic growth is strong and the Modi government is following strict fiscal discipline. This is all the more commendable in the current global situation marred by conflict and uncertainty.
The initiatives of PM Modi have helped India rise from the unenviable situation of being regarded as one of the “Fragile Five” in the world in 2014, to being one of the Top Five. In effect, PM Modi’s initiatives like Make in India have contributed to making the last 10 years a transformational decade – a quantum jump over the lost decade of Congress rule.