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Economic Survey is an admission of the failure of Make in India

Economic Survey is an admission of the failure of Make in India

By Anant Mittal January 31,2025

After 10 and a quarter years of promoting the idea of ​​making the country self-reliant in the manufacturing sector through ‘Make in India’, the Modi government has finally accepted that it has failed on this front. The deep concern expressed in the latest Economic Survey over the heavy dependence on imports from China in the case of manufactured goods is an admission of the failure of Prime Minister Narendra Modi’s boastful claim of making India the factory of the world. It is clear from this that like the promise of providing two crore jobs annually and depositing Rs 15 lakh in the account of every citizen, Prime Minister Modi’s claim regarding Make in India has also proved to be a mere slogan.

It is worth noting that in September 2014, Prime Minister Modi, standing under the lion mascot of spare parts, had loudly shown the golden dream of becoming self-reliant in the manufacturing sector through the ‘Make in India’ program. After that, the government treasury was looted by relaxing the rules of doing business in India, giving almost free land to industries to attract capital investment, relaxing environmental rules, giving production-related incentives to industries and giving employees’ provident fund money by the government. Despite looting the public’s money on capitalists with both hands, our dependence on manufacturing was finally exposed by Prime Minister Modi’s Chief Economic Advisor V Anantha Nageshwaran.

After 10 and a quarter years of promoting the idea of ​​making the country self-reliant in the manufacturing sector through ‘Make in India’, the Modi government has finally accepted that it has failed on this front. The deep concern expressed in the latest Economic Survey over the heavy dependence on imports from China in the case of manufactured goods is an admission of the failure of Prime Minister Narendra Modi’s boastful claim of making India the factory of the world. It is clear from this that like the promise of providing two crore jobs annually and depositing Rs 15 lakh in the account of every citizen, Prime Minister Modi’s claim regarding Make in India has also proved to be a mere slogan.

It is worth noting that in September 2014, Prime Minister Modi, standing under the lion mascot of spare parts, had loudly shown the golden dream of becoming self-reliant in the manufacturing sector through the ‘Make in India’ program. After that, the government treasury was looted by relaxing the rules of doing business in India, giving almost free land to industries to attract capital investment, relaxing environmental rules, giving production-related incentives to industries and giving employees’ provident fund money by the government. Despite looting the public’s money on capitalists with both hands, our dependence on manufacturing was finally exposed by Prime Minister Modi’s Chief Economic Advisor V Anantha Nageshwaran.

Apart from this, despite reducing corporate tax to 22 percent, private investment did not pick up. Private investment is stuck between 21 to 24 percent, while the total corporate profit is Rs 24 lakh 99000 crore in the years 2022-23 and 2023-24. In these two years, commercial banks have written off Rs 3,79,144 crore of corporate sector loans and waived them off. Surprisingly, despite such a huge amount of banks sinking, the Economic Survey is describing their books as almost loss-free.

The survey’s estimates of inflation remaining high till the year 2026 are going to increase the concern of the middle and lower classes. According to the survey, inflation related to services i.e. inflation continues unabated. It is clear from this that the trend of services becoming expensive may continue even after 2026. The survey recommends easing the tough government rules for micro, small and medium industries. However, the Modi government has not been able to take any concrete steps so far to revive these industries which provide the most employment, which have been devastated by demonetisation, indiscriminate GST and the Covid pandemic.
Now the suggestion to regulate this sector and give economic freedom is creating the fear of infiltration of big capitalists in these industries. According to the survey, the number of investors in the stock market has increased to 11 crores and they have made a profit of Rs 40 lakh crore in the last five years. The question here is where did all this wealth go, because there is no sign of it coming into the market and the demand increasing.

For the youth who constitute 65% of the total population of the country suffering from the scourge of unemployment, the warning given by the Economic Survey regarding the rise of unemployment due to Artificial Intelligence and Machine Learning is extremely worrying.

It is worth noting that in December last year, CMIE estimated the unemployment rate in the country to be 8.2 percent. Now the Chief Economic Advisor himself is warning that new jobs can be reduced due to AI and old jobs can also be in danger.

Apart from this, many new excuses have been coined in the survey to speed up the ongoing privatization by the Modi government. Among these, excuses like lack of money with the government and speeding up infrastructure projects due to increased private sector participation are prominent. Along with this, the survey is also showing the need to further promote PPP style i.e. public and private partnership. It is worth noting that the Modi government wants to hand over everything from highways to banks, airports, ports and government factories to private hands, but the government has currently relaxed due to the voter depriving it of majority by putting the Lok Sabha seat at 240 in the 2024 general elections.

According to the survey, progress has increased due to facilitation mechanisms like National Infrastructure Pipeline, National Monetization Pipeline and PM-Gati Shakti. Reforms have also been done with financial market regulators to encourage private participation. Despite this, the survey is advocating to increase the participation of private enterprise by identifying it as limited in many key areas. For this, the survey is advising governments, financial market setters, project management experts and planners to coordinate with the private sector. It is clear from this that the Modi government’s policy of handing over the country’s major economic resources to the lapdogs will continue in the future as well. Even if the real GDP growth rate gets stuck between 6.3 to 6.8 percent in the financial year 2025-26.

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