18 August 2014
Come, make in India: Prime Minister Modi invites global businesses

Prime Minister Modi’s Independence Day speechAs India celebrated its 68th Independence Day on 15 August 2014, the country's new Prime Minister, Narendra Modi, addressed the nation focusing on a range of issues from good governance, financial inclusion and building a 'digital India', to promoting tourism, women's safety, building model villages, and eradicating poverty.[1] 

One of the important topics Modi focused on was about making India a manufacturing hub for global businesses. While discussing the capabilities of the Indian youth, he announced to the world, "Come, make in India! Come, manufacture in India! Sell in any country of the world but manufacture here. We have got skill, talent, discipline, and determination to do something." He invited businesses from across the world to set up in India, mentioning sectors such as electronics, automobiles, agro value addition, paper, plastic, satellites and submarines. He also emphasised that goods should be manufactured with "zero defect" and should have "zero effect" on the environment.

Growth of the manufacturing sector would also boost job creation. While India has always had the benefit of a 'demographic dividend' with 65% of the population being under the age of 35, it has not truly been able to take advantage of this. Modi said promoting skill development was essential as only a skilled workforce would be able to create jobs and make progress.

While announcing several initiatives, he also acknowledged that it was essential for the government to move from being an assembled entity to becoming an organic entity with one aim – to steer the country towards further growth. He assured all that he would work on sharpening the functioning of government departments. Moreover, he also mentioned that the Planning Commission would be replaced by a new institution as instead of a central agency formulating plans and allocating funds, a joint team of the Central and State governments would be more effective in promoting development. Empowering State governments is crucial in order to ease the process of setting up a business in India.

Manufacturing accounts for only 15% of India's GDP and having witnessed a 0.7% contraction in 2013-14, the Prime Minister's thrust on the sector is well founded. As a result, it is evident that relevant policies are likely to be announced to facilitate growth of this sector.

Please feel free to get in touch with us if you have any questions or need more information on doing business in India. You can write to us at skpgrp.info@skpgroup.com.
 
[1] Prime Minister Modi's Independence Day speech http://www.narendramodi.in/text-of-pms-speech-at-red-fort

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