The "Make in India" campaign was as much an invitation to domestic and foreign companies as a promise to rectify everything that has kept the country at the bottom rungs of the World Bank’s ‘ease of doing business’ index
India has given an emphatic second term to the Modi government. It means key economic schemes like Make in India will now have to be re-looked at, keeping in mind the changing realities in the last five years. After today's announcement of portfolios, Piyush Goyal, the Commerce and Industry minister in Modi 2.0, has his task cut out for him.
In September 2014, four months into office, Prime Minister Narendra Modi unveiled a campaign to turn India into a manufacturing powerhouse. He pledged to remove official red tape and turn the country into an investors’ darling.
The "Make in India" campaign was as much an invitation to domestic and foreign companies as a promise to rectify everything that has kept the country at the bottom rungs of the World Bank’s ‘ease of doing business’ index.
India has since leapfrogged into the 77th rank in the World Bank's latest Ease of Doing Business rankings (2019), jumping 23 notches from 2018.
The report also recognises India as one of the top 10 improvers in this year’s assessment, for the second successive time. India is the only large country this year to have achieved such a significant shift.
The jump is significant, as it comes after 2018’s 30 rung jump. India moved into the top 100 rankings among 190 countries.
The initiative was aimed at making India an investors’ preferred destination by removing irritants, bottlenecks and regressive policies often blamed for scaring away companies.
From energy shortages and land problems to ambiguous tax laws and complex and multiple labour rules, a barrage of hurdles have kept away large-scale private investments in what should otherwise should have counted as a massive, attractive market.
Lack of cooperation between the Centre and state governments is also a deterrent for investors.The Modi government had aimed to raise the share of manufacturing in the country’s gross domestic product (GDP) to 25 percent from about 15 percent now, roughly the same share of the economy as peers like Brazil and Russia but less than China’s 32 percent.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.