An Analysis of "Make in India" Program of Government of India

&MADE IN INDIA

by INDIAHemant [email protected]

Hemant Goswami

What Do We Want?

❏ Sustainability - Short, Medium & Long Term❏ Principle of Co-Existence with Nature❏ Innovations and Creativity❏ Gainful Productive Employment❏ Dignity of Labour & Equality❏ Self Reliance, Sovereignty & Leadership❏ Export Surplus Nation

Hemant Goswami

Where Are We?India has been recording sustained trade deficits since 1980 mainly due to the high growth of imports, particularly of crude oil, gold and silver. In recent years, the biggest trade deficits were recorded with China, Saudi Arab, Iraq, Switzerland and Kuwait. India records trade surpluses with US, Singapore, Germany, Netherlands and United Kingdom. India is heavily dependent on crude oil imports, with petroleum crude accounting for about 34 percent of the total inward shipments. The country also imports: gold and silver (12 percent of the total imports), machinery (10 percent), electronic goods (7 percent) and pearls, precious and semi-precious stones (5 percent). India’s main import partners are China (10.7 percent of the total shipments), United Arab Emirates (8 percent), Saudi Arabia (7 percent), Switzerland (7 percent) and the United States (5 percent).

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Balance Of Trade Situation

As on November 1, 2014

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Balance of Trade

Balance of Trade in India averaged -1893.76 USD Million from 1957 until 2014, reaching an all time high of 258.90 USD Million in March of 1977 and a record low of -20210.90 USD Million in October of 2012.

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What Are We Exporting?

Drugs & Pharmaceuticals, Cotton Yarn/Fabrics/made-ups, Handloom Products, Man-made Yarn/Fabrics, Jute Manufacturing including Floor Covering, Handicrafts excluding hand made carpet, etc.

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Tourism

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Royalty And License Fees

Royalty and license fees; payments (BoP; US dollar) in India was last measured at 2819291078.76 in 2011, according to the World Bank. Royalty and license fees are payments and receipts between residents and nonresidents for the authorized use of intangible, nonproduced, nonfinancial assets and proprietary rights (such as patents, copyrights, trademarks, industrial processes, and franchises) and for the use, through licensing agreements, of produced originals of prototypes.

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Sectors

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Example Pharmaceutical - Why Good?❏ 3rd largest pharmaceuticals market by 2020.❏ 20% of global exports in generics.❏ The country’s pharmaceuticals industry accounts for about

2.4% of the global pharma industry by value and 10% by volume.

❏ India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.

❏ India is the sixth largest market globally in terms of size.

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Condition of Patents & IPR’s

❏ Indian companies are poor on IPR❏ Too costly for most in India❏ Favours only the rich❏ IPR scenario is favourable to MNC’s❏ Indian Universities are low on IPR’s❏ Conversion rate is a poor 4%❏ India is not likely to benefit by the IPR

regime

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Other Issues

❏ Protecting Human Rights❏ Protecting Labour & Employees❏ Occupational Safety❏ Global Equality of Wages❏ Human Resource Mobility❏ Accountability & Liabilities

Hemant [email protected]