Monday, 13 July 2015

Make in India, Made in India, Make for India, Manufacture in India

Why in news?

  • Modi Said: Make in India
  • Raghuram Rajan, Governor said: Make for India
  • Aam Janta - Common man said: what is Made in India then? what is Manufacture in India?
Make in India and Make for India

  • International marketing campaigning slogan coined by Modi to attract investment into manufacturing so as to boost Indian economy.
  • Aim: 
    • To attract businesses from around the world to invest and manufacture in India. 
    • Make India a manufacturing hub with following
      • Eliminating the unnecessary laws and regulations,
      • Making bureaucratic processes easier and shorter, and 
      • Make government more transparentresponsive and accountable.
  • Rajan Feels that Make in India means that things are made in India and then exported to other countries. He feels that it is like emulating China. In this process Indians do not get the benefits of manufactured products. So he suggests it should be Make for India than Make in India. Rajan Said:
"I am counselling against an export-led strategy that involves subsidising exporters with cheap inputs as well as an undervalued exchange rate simply because it is unlikely to be as effective at this juncture. I am also cautioning against picking a particular sector such as manufacturing for encouragement simply because it has worked well for China. Instead of subsidising inputs to specific industries because they are deemed important or labour-intensive, a strategy that has not really paid off for us over the years, let us figure out the public goods each sector needs, and strive to provide them" 
Manufacture in India and Made in India

  • That the product is industrially produced in India. But there is a problem
  • Better understood with example below
    • In manufacturing of iPhone - If Apple gets $150 of a phone’s value and China gets only $7, is the phone really made in China? No, I would say it is made in the US, and merely manufactured in China. The key parts of making goods is shifting to innovation design and marketing, not manufacturing components or assembling them. What matters is value capture, not just manufacture.
    • Indian companies have begun replicating Apple’s approach. Micromax has ousted Samsung as India’s top cellphone seller. Other Indian cellphone companies (Karbonn, Lava) are using the same approach. They design their phones, which are then manufactured and imported from China. As in Apple’s case, one could argue that Micromax’s cellphones are really made in India, and merely manufactured in China.

Some focus needs to be on Made By India
  • Made in India could be for domestic market, but made by India is where you design; you have the intellectual property, and you manufacture world class with quality standards that are expected. Basically it is same as Made in India.
    • TATA thought of  ‘Made by India’ when they thought of Indica and they succeeded
      .
Conclusion

  •  In traditional industries, “make“ and “manufacture“ may remain synonymous. But let us prepare for a future where, increasingly , “manufacture“ will be just a small part of “make“.
  • Regarding make in and make for - it is a matter of debate. Some say that Make in includes make for. and that Make in is not just for export. I leave this to your fine judgement. 


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