India 's An Indian Economy

1488 WordsNov 21, 20146 Pages
The Make In India campaign is an initiative by Narendra Modi, which was introduced on 2nd October 2014. It is advertised by launching a website and a logo of its own. The campaign lays a foundation for a pro-manufacturing initiative by the new government. With this plan, PM Modi intends to encourage Inclusive Growth in the country. The Inclusive Growth can be attained by exploiting the 3 D’s of the country i.e Democracy, Demand and Demographic Dividend. Also Modi’s pitch for FDI (First Develop India) would also revive the Indian Economy. Although the initiative of Make in India looks ambitious, but does it really reap fruits and overcome the shortcomings of Indian Economy from its 67 year old history is something to be debated upon.…show more content…
India is lagging in terms of infrastructure and more private players and public-private partnership should be encouraged to bring about the change. One such example is Jamshedpur built by TATA. It shows that the problems are able to overcome with proper policy changes. Secondly, power poses the next hindrance for the Industrial Sector. The issues related to power should be resolved as early as possible in the near future. Lack of power is a big hurdle to the running of industries. Many states like Tamilnadu, Uttar Pradesh, Bihar have power constraints. Apparently, the situation has been taken care of in Gujarat and this clearly shows how Gujarat has emerged as the fastest growing state economy in India. Thirdly, the laws pertaining to land acquisition are not business-friendly. The present scenario tends to be very time consuming and the costs of compensation and relocation are very high. The present law, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012, makes the process tedious and tiresome. Also, the cost of project increases fivefold and does not improve the ease of doing business. Further more, the problem of taxation prevents inflow of foreign investments as well as conducive business environment. Liberal tax laws tend to act as a fuel to smoothen the Industry as a growth Engine. It is important to note that Nokia plant in Chennai has to be
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