Minister defends “Make in India” in Parliament, says that the programme has received close to 5,000 queries so far
The Dollar Business Bureau
Amid growing concerns that the “Make in India” initiative has failed to provide any concrete push to India’s manufacturing or exports, the Indian government has come out with details stating that the programme remains afloat and continues to focus on manufacturing.
Assuring that the programme does not pose any threat to Indian companies, Nirmala Sitharaman, Minister of State (Independent Charge) in the Ministry of Commerce & Industry, informed the Parliament today that no specific concessions have been offered to foreign investors under the “Make in India” programme.
The election of the Modi government earlier this year had sparked enthusiasm among industry leaders in India who expected reforms in exports, manufacturing, infrastructure, finance and taxes. However, while the launch of the Foreign Trade Policy has been kept in abeyance, the government has remained largely mum on reforms.
A dip in exports in October and decline in manufacturing in November has prompted industry representatives to cast a doubt on the pace of reforms and the impact of the “Make in India” initiative. Last month, the Federation of Indian Export Organisations (FIEO) said that the delay in announcing the Foreign Trade Policy (2014-19) has led to ambiguity among exporters.
This week, the Associated Chambers of Commerce & Industry of India (ASSOCHAM) said that Indian exporters face tough times in the coming months due to slowdown in global economy and urged the government to devise new strategies to boost exports. It also urged all political parties to arrive at a consensus and launch the much needed reforms. And the Reserve bank of India (RBI) chief has said that there is a need to rethink the “Make in India” campaign. He said that instead of focusing on exports and import substitution, “Make in India” should largely be “Make for India”.
However, Sitharaman said that the “Make in India” programme aims to project India as an investment destination and make India a competitive manufacturing destination. “The programme has received very positive response,” she said. According to the Ministry of Commerce, the recently launched Make in India website has received a 4,896 queries so far.
Sitharaman also added that the government has taken several steps to improve ease of doing business in India, which include the launch of an online single window in the form of the eBiz Mission Mode Project, extension of validity of Industrial License from two years to three years, exclusion of major components of Defence products’ from industrial licensing, and labour reforms.
This article was published on December 17, 2014.
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