While the 'Make in India' campaign is a step in the right direction, it will have to be followed up by more tangible measures such as building ports, highways and increasing power generation says Nomura
Prime Minister Narendra Modi Thursday unveiled the 'Make in India' campaign. Under the campaign the government aims to increase the growth rate in the manufacturing sector in India to 10% compared with -0.1% in FY14 and raise its share to 25% in the overall GDP.
However, according to Nomura, success of such campaigns also depends on other factors such as availability of quality physical infrastructure and skilled manpower. "Thus, while the 'Make in India' campaign is a step in the right direction, it will have to be followed up by more tangible measures such as building ports, highways, increasing power generation and so on, to make India a manufacturing hub," it said in a research note.
Nomura said, from a broader perspective, the 'Make in India' campaign again highlights that the Modi government will focus on streamlining governance in India and building investor confidence to increase investments and boost growth in India. "While big reforms such as implementation of nationwide good and services tax will happen overtime, small changes at the micro level can provide the immediate impetus to put the economy back on high growth trajectory, in our view," it added.
Here are the key highlights of 'Make in India' campaign...
"Hold" investors hands, especially foreign investors.
Involve 25 government departments to streamline approval processes.
Provide time bound clearances through a single online portal.
Set up an eight member panel, called Team Invest India, to respond to investor queries within 48 hours, clarify policies to investors and suggest reforms to the Central and state governments.
Address issues in a comprehensive manner including amending labour laws,skill development, ease FDI policies and develop infrastructure.
Identified 25 sectors such as defence, pharmaceuticals, food processing, auto and auto components, electronics, where India can be a world leader
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