Make In India Advantages And Disadvantages | Scheme, Objective, Pros and Cons, Benefits and Drawbacks

Advantages And Disadvantages of Make In India: Make in India is a policy under Prime Minister Narendra Modi’s administration which aims to promote the manufacturing of goods and services in the country. In other words, this initiative by the Indian government seeks to encourage businesses to manufacture products in India. There are many benefits to making products in India, but there are also some potential drawbacks. In this article, we shall explore some of the pros and cons of the Make In India scheme.

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• Advantages of Make In India
• Disadvantages of Make In India
• Comparison Table for Advantages and Disadvantages of Make In India
• Conclusion on Make In India – Advantages And Disadvantages
• FAQs on Advantages And Disadvantages of Make In India

Advantages of Make In India

In recent years, there has been a boom in the manufacturing sector in India. The country is now home to some of the world’s most successful and innovative businesses. To further remove barriers to business, there are many provisions for a startup or an existing business under the Make in India scheme. As a result, the country as a whole benefits from this policy.

• Promotes economic growth – The Make in India Policy has many advantages. It allows entrepreneurs to develop new technology and make products here in India. This will help the economy grow, create jobs, and decrease the trade deficit. It is also a good option for companies that want lower cost of production and labor.
• Provides new employment opportunities – The new Make in India policy has been created by the government to help businesses create jobs and economic growth. It is an economic incentive that encourages large companies to produce goods locally and domestically instead of importing them from foreign countries. This will help Indian companies soar in the growing marketplace but also provides increased employment opportunities.
• Increase GDP – The Make In India policy has been a success for India. It has helped increase the GDP of India significantly ever since it was adopted in 2014. The success of the policy rests on the fact that at least 50% of total manufacturing needs are to be met through domestic production, and this in-turn will create jobs and help reduce import costs in the long term.
• Cost effective for startups and small businesses: One of the biggest benefits of manufacturing in India is that it is incredibly cost-effective. Unlike many other countries, where manufacturing costs are high due to stringent regulations and expensive infrastructure, in India it is possible to manufacture products using relatively low-cost inputs. This not only makes Indian products competitive on price, but also allows companies to expand their operations rapidly into new markets.
• Increasing Indian brand value – The Make In India policy is a step in the right direction for the Indian economy. One of its many benefits is that it allows domestically produced brands to grow and become competitive on an international scale. This also means brand value of local Indian businesses will likely grow and also provide a chance to compete on a global scale.
• Updation of technology – India’s Make in India policy has many advantages. Advances in technology and experience from industries that have already moved here will be a large asset to the country. The country will also learn how to create and maintain technologies themselves.
• Flexible Production: Another key benefit of manufacturing in India is that production can be very flexible. This is because there are a large number of small and medium-sized enterprises (SMEs) in the country, which means that companies can easily adapt their production lines to meet the specific needs of their customers. This makes it easier for companies to respond to changes in the marketplace, and also allows them to take advantage of new technologies more quickly.
• Low cost of labor: According to the World Bank, the average wage for manufacturing workers in India is just $0.61 per hour, which is much lower than the global average of $20.60. This means that it is very cheap to bring manufacturing operations to India.
• Availability of skilled labor: In comparison to other countries, India has a large pool of skilled labor. The country has over 1 billion people, and more than half are literate and numerate, making it an ideal location for manufacturing operations.
• Flexible infrastructure: India’s infrastructure is highly flexible and can be tailored to meet the needs of manufacturing companies. The country has a well-developed transportation system, a reliable power supply, and ample resources for factories.
• Available land: In addition to having a large pool of skilled labor, India also has a lot of available land. This makes it possible to set up small factories without having to worry about space.
• Accelerates development of rural areas: This policy has made a lot of sense, as the rural areas are ripe with raw materials and labor that can be used to create products. This allows many young people with little technical knowledge to start their own small businesses, which helps develop their region.

Disadvantages of Make In India

Make in India is an initiative that has been taken by the Indian government to encourage manufacturing in the country. However, there are a few drawbacks to this policy. Some of these include:

• Negligence of Agricultural Industry – The Make in India campaign is one of the biggest plans in India’s economy. It calls for local manufacturing of large-scale products by building a large number of new factories that produce goods for the Indian market. The campaign was put into place to help Indian businesses flourish and create more jobs, but some say it could be an issue because large areas of agricultural land are being converted for non-agricultural usage.
• Natural resources could be exploited – India’s Make in India policy has brought many benefits to the country, but it also has some negative effects. One of the disadvantages is that natural resources might be exploited excessively because there are not enough regulations in place on what materials can be used or how they should be used. For example, the sand pits near Agra have been almost completely emptied and are now covered with debris and trash.
• Not feasible for small entrepreneurs – As discussed earlier, the Make in India policy aims to revitalize the country’s manufacturing sector. However, this movement has been met with criticism for its failure to incentivize small businesses and entrepreneurs.
• Difficult to Build confidence for Indian brands – Branding is an important factor for companies to grow in the global market. Indian brands are not able to compete with multinationals because their success is dependent on what consumers think of them. Hence, some people might prefer Volkswagen or Skoda even though Indian automobile manufacturers like Tata and Mahindra are able to develop cars that are just as good as its foreign counterparts.
• Pollution – India’s Make in India policy has brought together many industries into the country. In doing so, the economy is thriving and the manufacturing industry is growing. However, this growth may come at a price. Pollution levels are rising due to increased industrialization.

Comparison Table for Advantages and Disadvantages of Make In India

Following are the advantages and disadvantages of Make In India:

Conclusion on Make In India – Advantages And Disadvantages

In conclusion, there are many benefits to the Make in India policy. The country is abundant in resources, has a skilled workforce, and is relatively cheap to operate in. However, making products in India comes with some risks. There is the potential for corruption and counterfeit products, as well as instability caused by political and economic changes.

FAQ’s on Advantages And Disadvantages of Make In India

Question 1.
What is Make In India?

Answer:
The Make in India Policy is a set of economic reform policies introduced by the Indian Government. The aim of these reforms is to encourage in-house manufacturing and increase the employment opportunities for people across India. One of the most significant aspects of this policy was that it offered incentives to companies that choose to manufacture their products in India as well as increased access to low cost credit lines.

Question 2.
What are the advantages and disadvantages of Make In India?

Answer:
Make In India policy encourages the in-house development and  manufacturing of goods in India. This has created a boom of small and medium-scale enterprises (SMEs) and has allowed the country to become the second largest manufacturing hub in the world. However, this policy is not without its disadvantages. The increased manufacturing has contributed to various types of  pollution (air, water, sound pollution etc)  that can cause respiratory problems, harm people’s health, and cause an overall decrease in quality of life.

Question 3.
Why is Make In India important?

Answer:
Make in India is an Indian government policy that aims to increase the manufacturing sector in India. The Make in India initiative was introduced with the goal of increasing manufacturing, decreasing unemployment, and reducing imports. This initiative has led to increased industrial production and a significant reduction in imports from other countries.