On 18th Feb, Government’s week-long “Make in India” fair ended in Mumbai, with $222 billion (Rs 15.2 lakh crore) in investment pledges, with host state Maharashtra alone accounting for Rs 8 lakh crore.
The mega event has managed to create a buzz to boost manufacturing in the nation, but a significantly thin attendance by foreign companies at the event launched by PM Narendra Modi means many are unlikely to actually happen.
Reportedly, the Mumbai jamboree was the biggest, however, earlier events launched by Modi, such as the “Vibrant Gujarat” have only observed around 13 percent of deals implemented.
Many CEOs asserted that even though the investment commitments will take at least two years to flourish, the event has showed the commitment of Modi’s government to take the nation forward.
Ravi Uppal (CEO and MD Jindal Steel & Power) told :
“Make In India is a step in the right direction and all the measures are to stimulate the demand for goods and services in the economy. That means the government must invest in infrastructure that is the prime move forward”
Although, some participants lauded the ‘Make in India” event, several complained about a lack of foreign involvement in the event. Ingo Eibbeck, a representative of German manufacturer ‘Schneider International’ told :
“The response is overwhelming, but mostly from Indians. There are Indians everywhere. Usually in Germany, in events like these, stalls are thronged by foreigners”
A research authorized by the free-market Friedrich Naumann and Cato institutes, has found the rate of conversion of such pledges into real investments in India has typically been far lower, with no state exceeding 20 percent of conversion rate.
Moreover, among investments signed in the last seven days were a commitment by Oracle Corp for $400 million to set up nine business incubation centers reportedly.
Apart from PM Modi, Finance Minister Arun Jaitley, Defence Minister Manohar Parrikar, Power Minister Piyush Goyal, Road and Transport Minister Nitin Gadkari and Maharastra Chief Minister Devendra Fadnavis, had made an entreaty to investors worldwide to start investing in Indian soil, taking into account country’s massive potential.
Source : Economic Times