Arun Jaitley today rejected RBI Governor Raghuram Rajan’s criticism of ‘Make in India’ programme. The Finance Minister said that the programme is about manufacturing of quality products at low costs and it was not relevant whether the products are sold in India.
“Whether Make in India is made for consumers within India or outside is not so relevant. The principle today says that consumers across the world like to purchase products which are cheaper and are of good quality. They hire services which are cheaper and good quality,” Jaitley said.
Rajan, earlier this month had cautioned against the new government’s ‘Make in India’ campaign. He said that the programme is a replica of the export-based growth formula that China has employed over the decades. He suggested that instead of calling it Make in India, it should be ‘Make for India’ keeping in focus production for the domestic market’s consumption.
Rajan had said he was “cautioning against picking a particular sector such as manufacturing for encouragement, simply because it has worked well for China.
Speaking at a “Make in India’ event this morning, Jaitley said manufacturing sector will continue to face challenges unless it transitions itself while keeping the quality and price in mind.
“India is different, and developing at a different time, and we should be agnostic about what will work.” Jaitley Said