Make in India vs Make for India

Posted in Group Discussion (GD) Topics with Answers, Total Reads: 11559

6 people are having a discussion on the topic (Mallika, Keerthi, Kruthi, Abhipsa, Kunal & Arshdeep)

Category: Business, Economy

Group Discussion Starts

Mallika: Good morning friends. Today we are here to discuss the debate triggered by the comments made by the remarks of the Governor of RBI, Raghuram Rajan on the government’s ambitious ‘Make in India’ campaign. He said instead of Make in India, we should focus on Make for India. So Make in India or Make for India?

Keerthi: Yes Mallika, he was referring to the focus of government on making India a manufacturing hub to serve both domestic and external demand.

Kruthi: Yes Keerthi, Adding to it he said in East Asian countries manufacturing led economic growth is driven by both domestic and external demand. Encouraging internal and external demand encourages them to develop good quality products and constant refinement of products. Similar proactive measures in India may not work as our internal demand is not encouraging enough.

Kunal: I agree with you Kruthi, Manufacturers in India may have to deal with problems of domestic demand. 56% of our population do not have regular access to basic needs. About 95% of families make less than 1.5 lakh per year. Where is the scope for increasing domestic demand?

Arshdeep: Yes I agree with you, Kunal. There is low scope for domestic demand but even if manufacturers depend on domestic demand there may be other issues. Indian demand is highly price sensitive and not so quality driven.

Abhipsa: It’s true, Arshdeep. Also Chinese manufacturers can be a huge competitors as they have moved up in quality and can easily provide same goods at competitive prices leading to tough time for Indian manufacturers.

Arshdeep: Yes, So focussing on external demand and internal demand at this point may lead to devastating results. Less than 1 percent of consumer demand is driven by quality in India. Hence focus on domestic demand may force manufacturers to cut costs and thereby discount quality.

Image: pixabay

Mallika: Yes, but should we undermine the ‘Make in India’ program just because it is not currently serving domestic demand? Make in India is aimed to add 90 million jobs in next decade. It covers 25 major sectors like automobile, IT&BPM, oil and gas etc.

Keerthi: It can also make India self-reliant in investment, innovation, skill requirements and manufacturing infrastructure. It can make us ready for future by improving the present.

Kunal: Let’s not forget the large unemployed youth in this country. Make in India can solve their problems through more jobs more skill development via exposure to better technologies and processes.

Arshdeep: Yes Kunal, India is on its way to have largest ‘young’ people in its workforce in the world. These jobs and skill upgradations programs are essential for our success in future.

Abhipsa: Also let’s not overwhelm ourselves with the concern for the domestic demand. Though Raghuram Rajan spoke of export promotion and import substitution not working for India, many experts feel the inflow of capital will lead to appreciation of rupee which can in turn reduce exports.

Arshdeep: Yes Abhipsa, Make in India will encourage foreign manufacturers to get finance themselves from Indian banks which will work in India’s favour.

Mallika: Yes but providing incentives for one particular field like manufacturing may not work for India as it worked for china, we may have to look for more holistic view in designing for our strategy for sustainable growth.

Kunal: Yes Mallika, I think efforts on in place for such holistic development. The Modi government is working on labour reforms, less governance, environment clearances to improve the current business scenario as a whole in India.

Arshdeep: Certain policies are in place to ensure infrastructure development. Development of 100 smart cities is an epitome of the efforts in this direction.


Make for India may be an ideal strategy for India’s growth but given our low domestic demand and price sensitive customer behaviour our manufacturing can grow steadily with make in India approach and focus on more foreign demand. The flow of capital and increasing per capita income via employment may increase domestic demand which may drive make for India in future.

Facts related to the topic

1. Make in India vs Make for India was first raised by Raghuram Rajan, Governor of RBI.

2. Make in India is aimed to add 90 million jobs in next decade. It covers 25 major sectors like automobile, IT&BPM, oil and gas etc.

3. 56% of our population do not have regular access to basic needs. About 95% of families make less than 1.5 lakh per year.

4. Development of 100 smart cities will help in improving infrastructure and sustainability needs of the country.


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