GLLef Series: Can “Make for India” overthrow “Make in India”?

January 29, 2015 | Posted by admin << back to blog

My recent journey in a MRTS train was interesting. I happened to hear a conversation between two of my co-passengers and it made me think a couple of things related to the “just-in” big thing – “Make In India”.
Passenger 1 was reading a news item about the conflict of Rajan vs. Jaitley and passenger 2, his friend, was glancing outside. The conversation was something like this.

Passenger 1: Do you think ‘Make for India’ can overthrow “Make in India”?
Passenger 2: Huh?? What did you ask?
Passenger 1: I asked whether you think ‘Make for India’ can overthrow “Make in India”?
Passenger 2: Let me ask you a question, what is your understanding of ‘Make for India’ and ‘Make in India’?
Passenger 1: Okay.. Let me try. In ‘Make for India’, the aim is to produce goods, which are demanded by the local economy. And then, these are made available at affordable prices with an objective to capitalize the increasing consumerism and to exploit the higher purchasing power parity.
Passenger 2: (interrupts…) you are right. Recently, India replaced Japan and become the third largest economy of the World in terms of purchasing power parity. Now Continue please..
Passenger 1: Thanks. Let me share my views on ‘Make in India’. It means diversifying the manufacturing sector to produce as much as possible. To put it simply, optimal output with constrained or available resources.
Passenger 2: Precisely!
Passenger 1: Having said that, in my opinion, ‘Make for India’ is better than ‘Make in India’. What’s your take?
Passenger 2: I don’t think so and I wish to differ. But before that, can you substantiate your stand?
Passenger : Alright.. Let me give an example. India’s import of goods and services to its GDP is around 30 per cent, for the last half a decade. Probably, ‘Make for India’ will help to curtain the imports in addition to the foreign exchange involved in this. May I now know why you differ?
Passenger 2: ‘Make in India’ is better because, it not only concentrates on manufacturing goods for local but also to sell to potential markets globally. It may lead to more entrepreneurial initiatives which further can find ways to nurture young talents in the country, all the while increasing the domestic consumption economy. What do you say?

Passenger 1: That’s a valid point. But, successes of any dynamic policy diversification are in the hands of political governance and bureaucrats. The stereotype that Indians are good in policy formulation and reverse in its implementation should be broken to handle anything.

Everybody listening to their conversation had a giggle hearing the last line. I was wondering how certain plain conversations like these make you think in a way you have not thought before. The understanding of complex concepts by a common man can bring many perspectives.

There was an announcement for the next station and there they got down greeting each other and I begin to think what more “Make In India” mean to common people like me?

Dr. G. Sathis Kumar
Lecturer, Great Lakes Institute of Management

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