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What is the real idea behind Make in India Concept & how it is understood

Prime Minister Narendra Modi has launched Make in India campaign on September 2014. What is the real intention of Make in India initiative, how it should be understood, & what should be the real outcome of this?
make-in-india

Well, the real intention of Make in India concept is You create, produce, manufacture products or solutions in India & export it to other countries. This way the Indian made products or solutions goes out & the cash comes into India. This cash should be spent & distributed in India.

Let’s explain this with an example, let’s assume that XYZ is an Indian company who creates, produces, manufactures products or solutions worth 1000 crore & export it to other countries. So this entire 1000 crore now comes to India & this cash will stay in India. How does this 1000 crore stays in India? Some portion of it will go for employee’s salary and for other products/services/raw materials bought in India, the owners profit they may utilize for them self or spend in buying other things (if all the products they buy are made in India). The employees who earns this salary will utilize this money in India (except for few foreign trips). So this entire 1000 crore stays in India, just that it is distributed across many people in many ways (which means everyone is earning money & their lifestyle improves).

Right now most of the money that we spend are going to foreign counties indirectly (starting from toothpaste, cosmetics, beverages, electronics etc. For example the money that we spend on a cosmetic will indirectly go to their head office which is in some other country and that money will stay there.

What if all these products are made in India by an Indian company? well our money stays in India plus the money from other countries will come to India as well. Currently, India is the exporter of cash to other countries but with the Make in India concept India will become the exporter of products/solutions & IMPORTER of cash. How nice this is, isn’t it?

Conclusion

In conclusion, the Make in India concept & the purpose of it is great for our country, if everyone understands it clearly & take self-initiatives to make it happen. The government should also create policies, benefits & infrastructure to encourage the local Indian’s to take this initiative.

Bringing an international brand to India to set up their production unit here might not serve the real purpose of Make in India concept, because though this international company produces its products here & exports to other countries the money will not come to India rather it will go to their head office which is sitting in some other country.

So the real Make in India should be You (people in India) should create/make in India & let the whole world use/buy your products/solutions. For example few Indian’s have Created in India the highly successful internet ecommerce businesses which is now used by the entire nation is ensuring the retail industry cash stay’s in India & allowing everyone in this eco system to get maximum benefits. If these successful companies were not created, the entire Indian’s online shopping spending would have gone to some other country (the billions of dollar online spend).

We need more & more Indian born companies/businesses like these in all vertical & all of which should also aim at serving the global population. This way Indian cash stays in plus the global cash also comes in.

Did you like this topic or do you have a different opinion to share? Please leave a comment below or write to us at contact@therealpictures.com

 

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