In this blog, we AKINHANDICRAFT will illustrate two different economic programs ‘Make in India’ and ‘Made in India’; one the govt. has and another the govt. might promote so as to cater to the stagnating economic situation in India. The essay analyses their pros and cons and ends by giving a possible solution to the dilemma of selecting between the 2 programs.

Make in India

make in india

The program launched by Narendra Modi’s Government in September 2014 finds its origin in 1901’s pre-independent India where Dadabhai Nauroji wrote against the exports of raw materials from India under the British economic policies. Just like Nauroji’s Make in India model, the new model under the BJP government aims to encourage industrialists to setup their manufacturing units in India through Foreign Direct Investment(FDI) so as to remodel India into a globally credible manufacturing ground.


The program was launched as a necessary response to the stagnating condition of the Indian economy when the NDA government took over. The GDP rate had dropped all the way down to roughly 6% after the promise of the BRICS nation failed and India was tagged as a member of the ‘Fragile Five’.

It absolutely was an invite to potential investors and businesses round the world. Fits of the program are optimistic in nature as they promise to assist solve the matter of unemployment within the Indian economy and improve the GDP from 5% to 7% by increasing the share of the manufacturing sector by 12%. This might not only provides a boost to the economy but also end in building the country’s infrastructure for the longer term further. The attempt to invite foreign investors to utilise India’s manufacturing potential through FDI leaves India in a very vulnerable position through which there’ll be a rise in government expenditures through licensing costs and costs of unit upgradation hindered by the shortage of raw materials within the economy. Another major drawback arises from allowing FDI within the defence sector. India has the third largest armed force within the world. However, currently, up to 60% of the defence requirements are met by imports.

Make in India also involves licensed manufacturing of foreign Défense equipment that’s regulated under the Défense Procurement Policy (DPP) within the categories ‘Buy and Make’ and ‘Buy and Make (Indian)’ under which an overseas producer gets obtained the transfer of technology and also the license to assemble a platform in India.


This could lead to political complications in beliefs that the defence sector shouldn’t be privatized in an indirect manner so as to satisfy a way of indigenous security and pride.

Made in India

made in india

‘Made in India’ could be a common phrase often seen on the tags of varied products that a consumer purchases. It establishes an identity of the product’s having been manufactured in India and offers consumers abroad a way to spot the product’s Indian origins. For a product to be tagged as ‘Made in India’, it has to be a product borne out of Indian factors of production – land, labour, capital, entrepreneurship and technology. this suggests that by promoting made in India, there would be a utilisation of our natural talent and recourses additionally as generation of employment opportunities for the Indian masses. Ready resources combined with favourable government policies would encourage start-ups by entrepreneurs.

Additionally, the competition faced by home brands from other domestic manufactures would be healthier than that through ‘Make in India’ where adverse competition can create negative outcomes like unemployment and incomplete infrastructure.


Made in India also fends off risks related to Make in India within the defence sector. From a political perspective, strategic benefits like defence strength and energy are volatile in nature and might have adverse effects if a body like an overseas investing MNC has control over the assembly of Indian arms instead of the state through its domestic producers. The defence sector can especially benefit through indigenous technology and production because elements of defence like complex combat weapons that depend on navigational guidance (for example, air to air missiles) similarly as defence communication and intelligence gathering are volatile elements during a warring political scenario. 

However, there is some drawbacks to the Made in India policy. this condition of the economy together with lack of state support makes it difficult for domestic brands to successfully be ready to compete with global brands in both the fronts of foreign trade i.e., exports further as imports because of the dearth of quality in domestic goods.

The solution is for the govt to encourage and facilitate enough research and development on make the simplest of the available natural resources further as promote policies that make it favourable for the Indian skilled pool of masses to explore their potential as entrepreneurs within the manufacturing sector. There are many sources from which a domestic commence can gather up the capital needed, widely divided into – Government, Private and Foreign.

With the assistance of a correct policy formulation by the govt., an Indian entrepreneur needn’t just depend upon FDI or FII so as to fulfil their capital requirements. Governmental sources of capital include not only Government owned banks, which are directly plagued by Government intervention, but also schemes like ‘The Technology Innovation Management and Entrepreneurship Information Service’ which assists technology oriented entrepreneurs to look for relevant technology, funding options and governmental policy information among other things. Recently, the Modi Government also launched a replacement Ministry for promoting entrepreneurship and skill development and creating jobs. There are other Governmental programs and initiatives that assist new smaller entrepreneurs in India with their start-ups just like the ‘Small Business Innovation Research’ which are generally limited to small to medium enterprises or agricultural and rural development.

Lastly, foreign sources of capital include Foreign Direct also as Indirect Investment by foreign investors to new or existent companies in India. As discussed earlier, ‘Make In India’ aims at this particular source of capital and resources so as to help with the domestic production.

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