Make in India is an initiative launched by the Indian government in 2014 to encourage companies to manufacture their products in India. The campaign aimed to increase foreign investment in the country and create job opportunities for the youth. However, like every other policy, the Make in India campaign has its disadvantages that need to be addressed. This article highlights some of the cons of the Make in India initiative.
Lack of Skilled Labor
One of the significant disadvantages of the Make in India campaign is the shortage of skilled labor in the country. The initiative requires a skilled workforce to make high-quality products, and unfortunately, India lacks this workforce. The majority of the Indian population is unskilled labor, leaving a small percentage of skilled labor for the manufacturing industry. This shortage of skilled labor has led to a decline in the quality of products and, in turn, affected the country's reputation in the international market.
Infrastructure Issues
The Make in India campaign requires an adequate infrastructure to support the manufacturing industry. Unfortunately, India's infrastructure is still underdeveloped, and the country is facing issues with power, transportation, and communication. The lack of infrastructure has made it difficult for companies to set up their manufacturing units in India. The high cost of setting up infrastructure and the government's unwillingness to invest in infrastructure development have deterred foreign investors from investing in the country.
Complicated Tax System
The Indian tax system is one of the most complicated tax systems globally, and the Make in India initiative has not made it any simpler. The various taxes, such as excise duty, service tax, sales tax, and value-added tax, make it difficult for companies to calculate their taxes accurately. The complicated tax system has increased the cost of production, making it challenging for companies to compete with their counterparts from other countries.
Red Tape and Bureaucracy
The Indian bureaucracy is infamous for its red tape and slow decision-making process. The Make in India initiative requires companies to obtain various licenses and permits from the government before setting up their manufacturing units. The bureaucratic hurdles have made it difficult for companies to obtain these licenses, leading to delays and increased costs. The red tape and bureaucracy have discouraged foreign investors from investing in the country.
Dependency on Imports
The Make in India campaign aims to make India a manufacturing hub and reduce the country's dependency on imports. However, the initiative has not been successful in achieving this goal. India still depends on imports for several essential products, and the country's balance of trade is heavily skewed towards imports. The absence of a robust supply chain and the lack of investment in research and development have made it difficult for India to become self-sufficient.
Conclusion
The Make in India initiative is a step in the right direction, but it has its disadvantages. The shortage of skilled labor, infrastructure issues, complicated tax system, red tape and bureaucracy, and dependency on imports are some of the challenges that need to be addressed. The Indian government needs to focus on developing a skilled workforce, investing in infrastructure development, simplifying the tax system, reducing red tape and bureaucracy, and promoting research and development to make India a manufacturing hub.
