{"id":1337,"date":"2018-07-24T07:50:33","date_gmt":"2018-07-24T07:50:33","guid":{"rendered":"http:\/\/allgujaratnews.in\/?p=1337"},"modified":"2018-07-24T14:55:59","modified_gmt":"2018-07-24T14:55:59","slug":"1337-2","status":"publish","type":"post","link":"https:\/\/allgujaratnews.in\/en\/1337-2\/","title":{"rendered":"Wither Make in India? New investments dropped by one third in three years, as stalled projects climbed: Bloomberg"},"content":{"rendered":"

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By Our Representative<\/b>
\nPrime Minister Narendra Modi and South Korean President Moon Jae-in may have celebrated the\u00a0inauguration<\/a>of what Samsung Electronics’ what is claimed to be the “world\u2019s largest mobile phone factory”, with Modi characterizing it as \u201cextremely important\u201d for his Make in India initiative to boost manufacturing to 25% India\u2019s economy by 2020 and create millions of jobs.
\n<\/a>But an in-depth\u00a0analysis<\/a>\u00a0in a news site owned by one of the world’s most powerful financial, software, data, and media companies headquartered in Manhattan, New York, Bloomberg LP, believes that this investment was “more the exception than the norm”, insisting, “Data from the World Bank and the Reserve Bank of India show manufacturing hasn\u2019t received a significant boost since Modi took office in 2014.”
\nEven as recalling that India\u2019s economy may have “overtaken” France to become the world\u2019s sixth largest, something which the Government of India is seeking to propagate as its huge success, the authors of the Bloomberg analysis, Iain Marlow and Vrishti Beniwal, say, the fact is, the country’s “manufacturing has shrunk to about 15% of gross domestic product (GDP) from a peak of 18.6 percent in 1995.”<\/p>\n

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Pointing out that “other data show new investments in India have dropped and stalled projects are on the rise”, the authors quotes an economics scholar based in Ottawa, Vivek Dahejia, as saying, \u201cThe Samsung announcement is good news, but it must be seen as a one-off at present… Make in India is a noble aspiration of the Modi government. Yet, in the absence of a supporting infrastructure and ease of doing business environment, it\u2019s a tough challenge.\u201d
\nThe article notes that the Make India initiative “is a worthwhile attempt to lure global businesses”, but, there is a strong view that “it hasn\u2019t been accompanied by enough meaningful changes to revive manufacturing or alter what is essentially a services-oriented economy.”
\nThe authors say, “Unlike Beijing\u2019s Made in China 2025 program — which targets strategic industries from robotics to new-energy vehicles through state investment and subsidies — Modi\u2019s Make in India plan is more of an investment promotion strategy.”
\nRecalling that “one of the key reforms under the initiative launched in 2014 was the loosening up of foreign investment restrictions in several sectors, including defense”, they assert, “However, private data shows investment is falling.”<\/div>\n
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Thus, the Centre for Monitoring Indian Economy (CMIE) has estimated that new project investments have dropped to Rs 6.62 trillion ($96.6 billion) in fiscal 2017-18 “from Rs 18.7 trillion in fiscal 2015.”
\nFurther pointing out that “the value of stalled projects climbed to Rs 7.63 trillion from 5.29 trillion during that period. Even data from the Reserve Bank of India\u2019s bulletin show that corporate capital expenditure has fallen since Modi came to power”, they quote Mahesh Vyas, CEO, CMIE, as saying that Modi\u2019s Make in India project hasn\u2019t worked, in part because Indian companies invested heavily for years until 2012, well before Modi\u2019s election, and now have excess industrial capacity.
\nAccording to them, “Those capacities have done little to temper growth in imports of foreign-made goods. Rising purchases of smartphones and TVs have made electronics India\u2019s second-biggest import item after oil, and is pushing the nation\u2019s trade deficit wider.”
\nThus, while under Modi, record foreign direct investment (FDI) may have flowed into India, “improving” the country\u2019s ease of doing business ranking, “Most investment, such as Amazon.com Inc.\u2019s $5 billion commitment to expand operations in India, has gone into the nation\u2019s dominant services and technology industries.”
\nBloomberg Economics analyst Abhishek Gupta is also quoted as saying, \u201cIndia\u2019s tough labour laws and higher bureaucratic entry barriers into manufacturing, along with its widespread fluency in English — a boon in global services — suggests that its comparative advantage lies in services.\u201d
\nThe authors add, “Even the Make in India program\u2019s mascot — a lion composed of gears — hasn\u2019t avoided the onerous regulations and occasional political interference that are still common in India and a key obstacle to investment.”<\/div>\n<\/div>\n<\/div>\n

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Country views July 22, 2018 By Our Representative Prime Minister Narendra Modi and South Korean President Moon Jae-in may have celebrated the\u00a0inaugurationof what Samsung Electronics’ what is claimed to be the “world\u2019s largest mobile phone factory”, with Modi characterizing it as \u201cextremely important\u201d for his Make in India initiative to boost manufacturing to 25% India\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1,4,10],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_shortlink":"https:\/\/wp.me\/paUKPQ-lz","_links":{"self":[{"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/posts\/1337"}],"collection":[{"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/comments?post=1337"}],"version-history":[{"count":3,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/posts\/1337\/revisions"}],"predecessor-version":[{"id":1360,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/posts\/1337\/revisions\/1360"}],"wp:attachment":[{"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/media?parent=1337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/categories?post=1337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allgujaratnews.in\/en\/wp-json\/wp\/v2\/tags?post=1337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}