Jaishankar Urges Industry to Adopt Long-Term Vision for 'Make in India'
External Affairs Minister S. Jaishankar emphasized that for 'Make in India' to succeed, the industry must adopt a long-term perspective, focusing on global competitiveness and strategic resilience rather than just short-term gains.
Photo by Hardik Monga
Quick Revision
EAM Jaishankar spoke at a CII event.
He emphasized a long-term vision for 'Make in India'.
Focus areas include global competitiveness, resilient supply chains, and global integration.
India's growth is linked to global growth and foreign policy.
Visual Insights
India's Strategic Position in Global Supply Chain Diversification
This map illustrates the global push for supply chain diversification, highlighting India's potential as a trusted manufacturing hub and key regions for market access and technological partnerships, as emphasized by EAM Jaishankar.
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Make in India: Key Performance Indicators & Vision
This dashboard presents crucial statistics and targets related to the 'Make in India' initiative, reflecting its progress and the long-term vision urged by EAM Jaishankar.
- Manufacturing Share of GDP
- ~17-18%Stable/Slightly Up
- FDI Inflows in Manufacturing (FY23)
- ~US$10.6 BillionFluctuating
- PLI Schemes Outlay
- ₹1.97 Lakh CroreN/A
- Ease of Doing Business Rank (2019)
- 63rd+79 ranks (since 2014)
Original target was 25% by 2025. Current figures show progress but highlight the need for accelerated growth to meet ambitious goals.
While overall FDI has been robust, manufacturing FDI needs consistent growth. Jaishankar's call for long-term vision aims to boost this further.
Across 14 key sectors, these schemes are central to boosting domestic manufacturing, attracting investment, and enhancing global competitiveness.
Significant improvement reflects government efforts to simplify regulations and improve the business environment, a key pillar of 'Make in India'. (Note: World Bank discontinued ranking after 2020).
Exam Angles
Economic policies and government initiatives (Make in India, PLI schemes, National Logistics Policy).
Industrial sector performance, challenges, and potential for growth.
India's foreign policy and its economic dimensions (trade, investment, technology transfer, FTAs).
Global supply chains, their resilience, and India's role in their diversification.
Factors influencing India's global competitiveness in manufacturing.
View Detailed Summary
Summary
External Affairs Minister S. Jaishankar recently spoke at a Confederation of Indian Industry (CII) event, urging Indian industry to think beyond immediate profits and adopt a long-term, strategic vision for the 'Make in India' initiative. He stressed that simply producing goods isn't enough; the focus should be on becoming globally competitive, building resilient supply chains, and integrating into the global economy.
Jaishankar highlighted that the world is looking for more reliable and diversified supply chains, presenting a huge opportunity for India to become a trusted manufacturing hub. He also pointed out that India's growth is increasingly tied to global growth, and the industry needs to leverage India's foreign policy to expand its market access and technological partnerships. Essentially, he's asking businesses to invest in quality, innovation, and strategic partnerships to truly make 'Make in India' a success story on the world stage.
Background
Latest Developments
External Affairs Minister S. Jaishankar's recent statement at a CII event highlights the evolving global economic landscape, particularly post-pandemic, where supply chain resilience and diversification have become critical. The world is actively looking for reliable and diversified manufacturing bases, presenting a significant opportunity for India.
The EAM's call emphasizes moving beyond mere production to focusing on global competitiveness, quality, innovation, strategic partnerships, and leveraging India's foreign policy to expand market access and technological collaborations. This signifies a shift towards a more strategic and outward-looking approach for 'Make in India'.
Practice Questions (MCQs)
1. Consider the following statements regarding the 'Make in India' initiative and recent emphasis by the External Affairs Minister: 1. The 'Make in India' initiative primarily aims to promote import substitution by restricting foreign goods. 2. External Affairs Minister S. Jaishankar emphasized that Indian industry must focus on building resilient global supply chains and leveraging foreign policy for market access. 3. A key objective of 'Make in India' is to increase the manufacturing sector's share in India's GDP. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is incorrect. While 'Make in India' promotes domestic manufacturing, its primary aim is not import substitution in the traditional protectionist sense, but rather to make India a global manufacturing and export hub, integrating into global value chains. Statement 2 is correct, directly reflecting the EAM's recent remarks. Statement 3 is correct, as increasing the manufacturing sector's share in GDP has been a stated objective of the 'Make in India' initiative since its inception. Therefore, 2 and 3 are correct.
2. In the context of India's ambition to become a globally competitive manufacturing hub, which of the following factors are most crucial for achieving resilient supply chains and enhanced market access? 1. Significant investment in Research and Development (R&D) and innovation. 2. Development of robust logistics infrastructure and reduction in logistics costs. 3. Negotiation of comprehensive Free Trade Agreements (FTAs) with key economies. 4. Prioritizing domestic consumption over export-oriented manufacturing. Select the correct answer using the code given below:
- A.1, 2 and 3 only
- B.2, 3 and 4 only
- C.1 and 4 only
- D.1, 2, 3 and 4
Show Answer
Answer: A
Statements 1, 2, and 3 are crucial for global competitiveness, resilient supply chains, and market access. Investment in R&D and innovation (1) drives technological advancement and product quality. Robust logistics infrastructure and reduced costs (2) enhance efficiency and competitiveness. FTAs (3) provide preferential market access. Statement 4 is incorrect in this context; while domestic consumption is important, the EAM's statement and the goal of global competitiveness emphasize an export-oriented approach and integration into global value chains, not prioritizing domestic consumption *over* export-oriented manufacturing.
3. Consider the following statements regarding government initiatives aimed at boosting manufacturing and exports in India: 1. The Production Linked Incentive (PLI) scheme is designed to offer incentives on incremental sales from products manufactured in India. 2. The National Logistics Policy aims to reduce logistics costs as a percentage of GDP and improve India's ranking in the Logistics Performance Index. 3. Special Economic Zones (SEZs) are primarily established to promote domestic tourism and local handicrafts. Which of the statements given above is/are correct?
- A.1 only
- B.2 and 3 only
- C.1 and 2 only
- D.1, 2 and 3
Show Answer
Answer: C
Statement 1 is correct. The PLI scheme offers incentives to domestic manufacturers on incremental sales over a base year, across various sectors, to boost local manufacturing and attract investment. Statement 2 is correct. The National Logistics Policy, launched in 2022, aims to reduce logistics costs from 13-14% of GDP to single digits and improve India's position in the Logistics Performance Index. Statement 3 is incorrect. Special Economic Zones (SEZs) are specifically demarcated duty-free enclaves treated as foreign territory for trade operations, primarily established to promote exports, attract foreign investment, and generate employment, not domestic tourism or local handicrafts.
Source Articles
To realise Make in India, industry needs to look beyond the short term: Jaishankar at IIM-Calcutta | Kolkata News - The Indian Express
Forget metros and highways, India needs to revive manufacturing | The Indian Express
Make in India essentials | The Indian Express
How to tailor the garment sector for exports | The Indian Express
India’s way forward: Services or manufacturing? | The Indian Express