Indian Experience to Stimulate Economic Development: Make in India Programme

Occupation: Professor, Nikolay Liventsev Department of International Economic Relations and Foreign Economic Ties, Moscow State Institute of International Relations (University) of the MFA of Russia
Affiliation: Moscow State Institute of International Relations (University) of the MFA of Russia
Address: Russian Federation, Moscow

NIkolay Revenko

Occupation: Leading Research Fellow, Institute for Research of International Economic Relations, Financial University
Affiliation: Financial University
Address: Russian Federation, Moscow

Journal name

Asia and Africa Today

Edition

Issue 12

Pages

49-56

Abstract

The article analyzes the Make in India programme made public by the Prime Minister Narendra Modi in September 2014. It notes that the programme is a logical follow-up of the country’s large-scale economic liberalization initiated in 1991-1992. The article focuses the goals of the program (to increase the share of the manufacturing sector from 15% to 25% by 2025, to stimulate foreign direct investment flow and innovation, to raise the intellectual property rights protection level, to create new jobs) and the measures taken by the Indian government. In particular, many sectors of the economy have been fully opened to foreign investors, and the need to obtain permit from the authorities to invest in most sectors has been canceled. The requirement to obtain government approval and share restrictions on the FDI permitted under the government route remain for banking, broadcasting content services, multibrand retail trading, print media, defense, biotechnology and some other sectors, and the share of foreign investments to infrastructure companies in the securities market, insurance, pensions, petroleum refining and power exchange is limited to 49%. The programme provides for the creation of new industrial clusters, consisted of 5 industrial corridors with a world-class infrastructure. A number of procedures related to business opening and running have been simplified to attract investments.

The article notes that the implementation of the programme resulted in a significant increase in FDI in many sectors of the economy, but the effect is lower than expected under the influence of both objective (lack of electricity and qualified personnel, underdeveloped transport infrastructure) and subjective (complex legislation, conflicts with trade unions) factors.

Keywords

Make in India, economic development, FDI stimulation

Publication date

13.12.2019

Number of characters

23828

Cite

GOST	Revenko L., Revenko N. Indian Experience to Stimulate Economic Development: Make in India Programme // Asia and Africa Today – 2019. – Issue 12 C. 49-56 [Electronic resource]. URL: https://asaf-today.ru/S032150750007657-4-1 (circulation date: 20.04.2024). DOI: 10.31857/S032150750007657-4
MLA	Revenko, Lilia, Revenko, NIkolay "Indian Experience to Stimulate Economic Development: Make in India Programme." Asia and Africa Today 12 (2019):49-56. DOI: 10.31857/S032150750007657-4
APA	Revenko L., Revenko N. (2019). Indian Experience to Stimulate Economic Development: Make in India Programme. Asia and Africa Today (12), pp.49-56 DOI: 10.31857/S032150750007657-4

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