For any Nation to reach its maximum potential by virtue of Economy, self-sufficiency is the key. The Indian subcontinent is full of resources of every kind natural, Human or technological. The only barrier in Indian development is the lack of competency in the industrial sphere; we do not process what we produce. This statement could further be understood by knowing that Indian imports in 2019 accounted for about 514 billion dollars whereas the export stood at 330.07 billion dollars resulting in a trade deficit of 180 billion dollars, which in general terms means we gave away about 180 billion dollars to other nations. If this is not enough a report in 2016 estimated Indian Trade Deficit to grow to about 500(Billion dollars) by 2030.
In the wake of this, Prime Minister Narendra Modi led the Indian Government to launch a full-fledged program for Industries to grow in India namely Make in India. In accordance with this initiative, the Indian Government projected Indian GDP to shoot up to 25% for which a variety of steps were taken which had wide implications on businesses.
- Improvement In Infrastructure
To improve Indian manufacturing sector infrastructure and capacity are boosted: Development of smart cities and industrial nests in areas of High potential with supplies of Raw material and Workforce along with high transportability
- There is a bid to develop new smart cities and industrial clusters – the Delhi-Mumbai Industrial corridor is projected to make 5 smart cities: Greater Noida, Ujjain, Gurugram, Dholera, and Shendra-Bidkin,
- Northeast India is work in progress to be connected with other Industrial corridors
- Re-cycling and treatment of water through zero liquid discharging systems.
- Construction of central effluent treatment plants.
- Provisional Changes during the Union Budget 2016-17
- To promote start-ups there is a proposal of 100% deduction of profits for 3 to 5 years for start-ups set up from April 2016 to March 2019 with a minimum alternate tax in place.
- Granting “Residency Status” to nations and the proposal to grant International investors on satisfying certain conditions.
- Custom and Excise Duties are changed to bring costs down and enhance the competitiveness of the domestic sphere in sectors like IT hardware, defense production, mineral fuels, and mineral oils, chemicals and petrochemicals as well as in Maintenance Repair of aircraft and ship repair.
- Positives to draw upon
After putting in so much of efforts by the Indian Government, many positives are emerging
- Samsung has put up a manufacturing plant of Mobiles in India which is set to induce self-sufficiency and its production is estimated to be so high that it will also export and hence building a great foundation for further growth.
- Apple inc. is set to move its production from China to India for which all the groundwork has been done. This move is also in terms of American policy to go on poles with china.
- Google announced recently to invest 75,000 Crore in India via Equity Investment, partnership, and operational investment.
Author’s Take
India is receiving numerous opportunities as their work in laying a foundation to establish India as a Manufacturing Hub is bearing fruits, India should capitalize upon these chances. If the pace is kept, India will certainly grow to tremendous highs because of its vast potential and dedicated efforts.
~By Shubham Yadav