Tuhin Kanta Pandey, the chairman of the Securities and Exchange Board of India (SEBI), announced on 11 October that the market watchdog is simplifying regulatory procedures to facilitate NRI investments in Indian equities markets. In order to eliminate the need for NRIs to return to India in order to fulfil know-your-customer (KYC) standards, the regulator is attempting to streamline the process.
At a function hosted by the Bombay Stock Exchange Brokers’ Forum on October 11, Pandey stated that SEBI has not yet created a simple and safe KYC access system for NRIs to enable their involvement in the securities market. This will be the regulating body’s first priority.
SEBI Collaborating with RBI and UIDAI
Pandey stated that SEBI is working with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI) to develop a system that would allow NRIs to complete their KYC verification over video conversations rather than needing to return home. Notably, there are more than 3.5 crore non-resident Indians (NRIs) worldwide, and India is the biggest beneficiary of remittances worldwide, with $135 billion received in FY25.
According to Pandey, SEBI’s “immediate goal” is to make the FPI registration process quick and easy by making it entirely portal-based, because the agency previously agreed in September to establish a single window for trusted foreign portfolio investors (FPIs) with less stringent compliance standards. In order to put it into effect, he continued, SEBI is already consulting its stakeholders.
When it comes to enabling registration, SEBI wants to be among the best in the world. To enable digital registration, SEBI, RBI, and the Income Tax Department would need to collaborate, according to Pandey, who characterised the project as a “process issue” rather than one resulting from hazards. Speaking to the broker community, Pandey stated that SEBI will finish revising broker laws by the end of December.
SEBI to Device Framework to Prevent Cybercrime
According to Pandey, SEBI will speak with market infrastructure organisations before issuing instructions on keeping an “air gap” in order to improve cybersecurity. He went on to say that SEBI has put in place a redundancy model for clearing corporations, which enables operations to continue without interruption in the event that one clearing corporation fails, and that market infrastructure institutions are being put to the test through live disaster recovery drills.
“As with stockbrokers, we are also looking at implementing a safety net at a depository participant in the event of an outage,” Pandey stated. He added that the data warehouse system has been redesigned to create new role-based alerts to detect fraudulent trades in bulk deals and identify pump-and-dump trends. He also mentioned that SEBI is moving from reactive supervision to predictive oversight in the surveillance space.
As per Pandey, high-frequency and algorithmic trading have grown significantly in recent years and now make up a sizable portion of volumes in the derivatives and equity markets.
Quick Shots
•SEBI
to simplify NRI investment norms to make it easier for Non-Resident Indians
to invest in Indian equity markets.
•NRIs
may soon be able to complete KYC verification via video calls, eliminating
the need to visit India.
•3.5
crore NRIs globally — India remains the top recipient of remittances at $135
billion in FY25.
•SEBI
aims to make foreign portfolio investment registration fully online and
faster.
This past week saw fresh enthusiasm from foreign portfolio investors for Indian equities, as they pumped in a fresh INR 17,425 crore between April 21 and April 25. This was much higher than the nearly INR 8,500 crore they had infused in the previous week, which was cut short due to a holiday. What capped off this FPI euphoria last week was a strong indication from the US Federal Reserve that detrimental rate hikes were off the table for the time being. A stable US dollar coupled with easing international trade tensions has made investors much more amenable to the risk associated with emerging markets like India.
Domestic Strength Adds to the Momentum
The economic landscape of India has played a very critical role in the attraction of foreign funds. The analysts indicate that the solid growth prospects of India, together with a notable softening in the temper of inflation, and the early projections of an above-normal monsoon, are all terrific confidence boosters. And of course, if you aggregate all of that, it positions India as a much safer and far more promising investment destination compared to a number of global peer countries. And so, this becomes a very potent narrative for foreign investor attraction to India.
Early Month Outflows Still Weigh on Sentiment
Yet the overall picture for April is not so rosy. From depository data, we know that FPIs have pulled out ₹5,678 crore from Indian equities in the month leading up to April 26. This was not just a one-off occurrence occurring on a few specific days; the selling was largely consistent from start to late April.
Day-to-day selling was so much in excess of buying that we saw domestic equity benchmarks drop consistently on most trading days during that stretch. FPIs could not have pulled out that much money with just a few days of strong selling; this was a prolonged act of selling that affected multiple days and multiple businesses. Overall, domestic equity benchmarks dropped by a handful of percentage points during that span.
Investment strategists say that two key shifts have happened to bring foreign investment back into Indian markets. One is a softening US dollar, which has come down from a high of 111 in January to about 99 now. The other is the expectation that economic growth in the US will slow down and consequently impact corporate earnings there, whereas India is looking very solid with a growth above 6%. If these two trends hold, foreign investment will continue to trickle into the Indian market and sustain the run that the market is on.
The non-bank financial company Jio Financial Services Ltd (JFSL), which is a subsidiary of Reliance Industries, has been in the news recently. The Department of Economic Affairs, Ministry of Finance, authorised JFSL to raise the foreign investment limit to 49% of its total stock on a fully diluted basis, which the firm disclosed recently and could further accelerate its growth trajectory. Foreign Portfolio Investors (FPIs) and other foreign investors will be able to participate more actively as a result of this decision.
The business, which is headed by billionaire Mukesh Ambani, first asked its shareholders for approval to increase the foreign investment limit to 49% in May 2024. This action is not merely a technical modification; it is a strategic manoeuvre designed to attract substantial foreign capital.
In order to stand out in India’s very competitive financial services industry, JFSL is actively courting investors from around the world. The capacity to attract investment from outside sources will allow the business to grow by bringing in much-needed finance, as well as international knowledge and ideas.
JFSL’s Strong Financial Performance Is the Icing on the Cake
This declaration is made in light of the fact that JFSL had a very successful financial performance during the first quarter of 2024. A consolidated net profit of INR 311 crore was declared by the company for the quarter that ended in March 2024, representing a 6% increase over the previous quarter’s figure of INR 294 crore accumulated in December.
In the meantime, the consolidated revenue from operations stayed unchanged INR 418 crore, which is a decrease from the previous quarter’s figure of INR 414 crore.
Strategic Collaboration
Strategic actions have been taken by Jio Financial Services to increase its market share. The business established a historic alliance with global asset manager BlackRock, Inc. in April 2024. The two companies are teaming up to launch a wealth management and broking firm.
By delivering digital-first investment products, this partnership would likely revolutionise India’s asset management industry and meet the changing demands of Indian investors. By teaming up with BlackRock, JFSL is sending a message that it is serious about innovation and wants to dominate the wealth management industry.
JFSL’s Performance at the Stock Market
The impressive market performance of JFSL since its debut on the stock market in August of last year has captured the interest of investors. At the beginning, the market valuation of the company was more than INR 1.5 lakh crore.
The stock has nevertheless managed to produce positive returns of more than 52% over the past year, even with this small decline. On the other hand, Jio Financial Services is in a great position to attract additional international investments thanks to the recently approved rise in the foreign investment limit, which might lead to even better stock performance in the months to come.
A recent study revealed that between 2000 and 2012, 4000 Indian startups have registered in Singapore. As of 2020, this number has grown to nearly 8,000. This is despite the fact that the Indian ecosystem is the third largest in the world after the United States of America and China.
Registering a Business in Singapore – All You Need to Know
A Brief History
India and Singapore share a common culture, history and ethnography. The countries’ values and social norms can be traced to South Asian Indo-Chinese cultural patrimony. Both countries are a part of the commonwealth of nations and were under British rule for a long time. India and Singapore received their Independence around the same time. After independence, both countries were severely underdeveloped. India and Singapore have strong trade ties.
However, this is where the similarities ended. While Singapore has grown to become a showcase of economic progress, India’s economy has progressed unsteadily and haltingly. India has followed a meandering but democratic path from a closed socialist economy to a market-based economy. Singapore’s market approach has been resolute, steadfast and undergirded by a tinge of authoritarianism.
Even when it comes to topics like law and order, Singapore ranks higher than India having been successful in running a rule-following, corruption-free, market-based economy. The wide gap between the two countries is visible in their approaches towards the regulation of their economies. Singapore promotes a light-touch compliance-based regulatory framework, while India operates a complex, heavy-touch system that is mired in corruption.
Singapore also ranks higher than India in other factors like political stability, crime levels, rule of law, multicultural harmony, economic stability, foreign reserves, currency stability and global integration.
Reasons for Startups’ Registration in Singapore
There are some generic and specific reasons which are prompting Indian startups to register their companies in Singapore. India is one the toughest countries to conduct business. In the World Bank Ease of Doing Business report of 2020, India at no. 63 as opposed to Singapore’s rank of No. 2.
Ease of Doing Business in Singapore Score from 2014 to 2020
Corporate Taxation Structure
There is a marked difference in the Corporate Tax rate between the two countries. Indian Corporate tax rate for domestic companies is at a whopping 30%, whereas Singapore’s corporate tax is more attractive at 17%.
Dividend Distribution Tax
In India, the dividend is paid from the company’s post-tax profits. However, the dividend amount that is paid is also taxed. Singapore avoids this double taxation and the company is not taxed on the dividends that are paid to the shareholders.
Capital Gains Tax
India’s Capital Gains Tax structure is high. It is anywhere between 15% and 20%. Such a high tax structure works almost like a penalty for entrepreneurship and risk-taking. Singapore does not have Capital Gains Tax within its Taxation framework.
GST Structure (Value Added Tax)
India’s GST structure ranges from 5% to 28%, depending on the products or services sold by the company. In Singapore, however, the value-added tax is fixed at 7% with many goods and services exempt from it as well.
The Indian government does not give any significant benefits to startups – either in Taxation or any other advantages. To put it bluntly, Singapore rolls out the red carpet for new entrepreneurs.
Infrastructure and Quality of Life
Singapore offers world-class infrastructure for burgeoning businesses and also a better quality of life. Indian Infrastructure is yet to reach that level and amenities of life can be challenging even for the rich elite within the country.
Global Advantage for Business Expansion
Singapore’s extensive network of tax treaties with other countries, including India, makes it easy for Indian companies to conduct international business. Of course, the bigger attraction is that businesses avoid double taxation on their income.
Number of Investment Deals Made in Tech Startups Based in Singapore from 2018 to the first half of 2020
Ease of Foreign Investment
India’s laws on foreign investment are complex with a lot of red tape. Singapore, however, makes it easy to do foreign investments which is quick, secure and confidential.
Singapore’s robust infrastructure for Mergers and Acquisitions (M&A) is ideal for an Indian startup to operate the Singapore business as an M&A arm. Nearly all of the world’s investment banks, consulting firms and accounting firms have a strong presence in Singapore.
Efficient Legal System
Singapore has a clean, efficient and well-functioning legal system which is very attractive to international deal-makers. Any disputes can be settled either through Singapore’s court system or its extremely effective Alternative Dispute Resolution System.
Setting up a Holding Company
A Singapore-based holding company is a very common corporate structure for Indian startups. It is very useful when a company is growing and taking unquantified risks. Such a holding company can provide risk management and flexibility in terms of dividing the ownership of the component companies among various parties. Often the holding company may own the assets that are used by its subsidiaries. Investing in an Indian company through a holding company based in Singapore provides substantial tax benefits.
Indian businesses that deal with payments in foreign currencies run a significant currency risk, the target foreign currency moves in an adverse direction to the Indian Rupee. Due to the high volatility of the Indian Rupee, this risk is high and real. An alternate approach is to hold assets in stable currencies like USD, GBP, EURO or SGD. This is easily achieved by creating a Singapore subsidiary which has one of the most well-run foreign currency markets.
Conclusion
As more entrepreneurs join the growing Indian Economy consensus is building regarding providing recommendations to the Indian Government to pave the way for ease of operations for startups.
FAQs
Why do startups prefer Singapore?
Startups prefer Singapore because of its extremely attractive tax rates. Singapore’s corporate tax of 17% is one of the lowest in the world.
Why did Flipkart register in Singapore?
One of the most prominent reasons why Flipkart registered in Singapore is the customs duty. Compared to India, Singapore has no export duty and only a limited import duty on products like petroleum, tobacco, etc.
What are the benefits of having a company in Singapore?
The following are the benefits of having a company in Singapore:
Landomous Group which is a lesser-known US firm has announced that it would like to invest an amount in India. The firm has said that it would want to invest USD 500 billion by making an appeal to PM Narendra Modi. Let’s look at whether the company really wants to invest the amount.
Landomous Realty Ventures has announced that they would want to invest an amount of USD 500 billion in the form of equity into India’s National Infrastructure Pipeline (NIP). The announcement was made in the form of an advertisement in a newspaper where the company made an appeal to the Prime Minister of the country, Narendra Modi.
Pradeep Kumar Satyaprakash who is the chairman of Landomous Group had conveyed through the advertisement that the company Landomous Realty Ventures inc., USA, would like to invest in the First Phase of the USD 2 trillion investment under build India with a USD 500 billion in equity into the National Infrastructure Pipeline (NIP) and also the Non-NIP projects that are listed under the India Investment Grid for Invest India initiative by the Government of India.
Which Sectors Landomus Group is planning to Invest?
Landomus has conveyed that they are aiming towards completing the NIP and non-Nip projects along with the investors and developers. They have announced that they would like to support projects in the sectors such as energy, manufacturing, social infrastructure, food processing, transportation, agriculture, sanitation and water.
Landomus Group has also made the announcement on their website.
Further Details about Landomus Group Investment in India
In the advertisement on the newspaper, it was mentioned that the company is aiming towards assisting the government in achieving the USD 5 trillion GDP target and would also like to assist the government in rebuilding India.
The Chairman of the company had communicated through the ad that the company is requesting the Prime Minister of India to provide them with an opportunity to contribute to the vision of New India.
At the end of the advertisement, they had mentioned that they would require a chance to present their plan and that they had a proper plan to make India pandemic free.
About the Landomus Group
There is not much information available about the company as their website is just one page. As per the received information the company has around 19 employees and a revenue of USD 5 million. It has been found that the website of the company was created in the year 2015 by United Land Bank which has its headquarters in Sivan Chetty Gardens Karnataka, India.
The website had provided the address of Landomus Realty Ventures Inc and their location as Secaucus, New Jersey, USA.
FAQ
Where is Landomus Group based?
Landomus group is a US based company.
Is Landomus Group a Govt Company
No. It is a Non-govt company and but a company with same name is registered at Registrar of Companies, Bangalore.
Who is the CEO of Company?
There is no information available about the CEO of Company.
Conclusion
NIP was announced in the year 2019 during the month of December by the Union Finance Minister Nirmala Sitharaman. A total infrastructure investment of around INR 111 lakh crore has been projected during the Financial Year – 2020 – 2025 by the centre under the NIP.
UAE can be considered as one of the best places to set up a new business or to expand your existing business internationally. The country’s economy is the fourth largest in the middle east and has a GDP of USD 421 billion. There are few steps you would have to follow in order to set up a business in UAE.
1. Select the Right Jurisdiction for your Business in UAE
The most important step of any business is to select the business activity and that should be your first step. But for setting up a business in the UAE you should have a basic idea of the different jurisdictions first and accordingly move forward with the rest of the steps.
The UAE market is divided into different economic zones. The different zones in the UAE are Mainland, Free zone and Offshore. These economic zones are jurisdictions and each jurisdiction has a different set of rules and regulations.
Mainland
A business that is set up in the Mainland of UAE will be able to do business anywhere in the UAE market. This means that the company will be able to do business in both inside and outside the UAE market. It is mandatory to have a physical office space with a minimum requirement of 140 sq. ft.
Free Zone
A business that is set up in the Free zone of UAE has certain restrictions in doing the business. They will only be able to conduct the business in the jurisdiction of the Free zone and outside the UAE. It is not mandatory to have a physical office space and a virtual office space would do.
Offshore
Offshore companies are business entities that will be registered in the UAE in order to conduct the business outside the country or outside the jurisdiction. The offshore companies are allowed to set up multi-currency accounts in UAE and to carry out the business internationally. An important point you should notice is Offshore companies are tax free in UAE.
2. Choose the Type of Business you want to Setup in UAE
The first step would be to choose the type of business activity you would want to set up in the UAE. For example, certain Free zones would allow only a specific type of activity in their area and it is wise to set up a business in the zone where it is closely related to your activity.
If your business is concentrated on import and export it would be better if the business is set up near the port or an airport. However, choosing the business activity will be the major step in setting up your company in the UAE.
3. Select a Name for your Business in UAE
The next step would be to choose the name of the company for your business activity. In UAE there are certain restrictions in regards to the name of the company. You will not be able to use any religious names that are referred to Allah, Him or anything related to the religion.
You will also be restricted from using the names of various political groups such as the FBI or Mafia and if you choose to register the business under a person’s name then he or she should be registered as a partner for the business.
4. Paperwork for your Business in UAE
You will have to finish the paperwork after selecting the activity and the name of your business. You will have to fill an application with the activity and the name you have chosen for your company. You will also have to submit a copy of the passports of shareholders to the government authorities.
It is to be noted that certain Free zones will require additional papers and documents such as a business plan or a NOC (Non-objection certificate) which is a letter from the current sponsor that they don’t have any issues to set up another business in UAE.
If you seek an expert help then it wouldn’t be so complicated as they would take care of the major challenges and advise you on the paperwork and help you in completing it.
5. Obtain a License for your Business in UAE
The easiest and the most important step is receiving your license. After all the steps you will receive a license from the government after checking all the applications and the documents submitted.
You will also have to apply and receive a trade license which is also called as the business license. There are different types of business licenses in the UAE such as Professional License, Industrial License, Tourism License and Commercial License.
These licenses are important for UAE Mainland companies but for Free zone company it would defer according to the business activity and the jurisdiction.
The next important step is to open a bank account in UAE. The country has a lot of banks both local and international ones. Some of the local bank accounts in the country are Emirates NBD, Abu Dhabi Commercial Bank and many more. The major global names are Citi Bank, HSBC and Barclays.
You can choose any bank and approach them or the business set up partner you have approached will try arranging a meeting with the bank of your choice and this may help you understand the policies of the bank and then make a decision.
7. Submit an Application for your Visa in UAE
This is the final step of setting up your business in the UAE. You will have to submit the application for processing your visa, according to the economic zone you select it will let you process the visa for your dependents and employees as well.
The Visa processing will consist of 5 simple stages such as Entry Permit, Status Adjustment, Medical Test, Emirates ID registration and Visa Stamping.
FAQ
Which is the best business in UAE?
E-Commerce Solutions, Travel and Tourism, Real Estate Agency, and Health Sector are some of the best business you should consider in UAE.
Is UAE good for business?
Low tax rates, low import duties, free trade agreements, a competitive economy, strategic location, state of the art infrastructure, are some of the benefits that make United Arab Emirates (UAE) one of the best places in the world for business.
Which business is best in Dubai?
Restaurant, Construction, Health and wellbeing, Transport, Freight and cargo, Real estate, and Cleaning services are some of the best business you can start in Dubai.
Conclusion
The UAE Free zone is more common in between the foreign entrepreneurs than the Mainland and offshore economic zone. The company formation in UAE is easier and they have a speedy process with strong incentives which makes it one of the favourite location for the foreign entrepreneurs.
Sequoia Capital has invested in some of the greatest ideas that this planet has ever seen. Don Valentine founded Sequoia Capital in 1972 and it has been creating history since then. It seems they have some ‘magic formula’ to predict the immense success of start-ups that get pitched to them. Of course, they don’t pick all of them but they sure do have a good hand.
Sequoia Capital Portfolio is bejewelled with many start-ups that changed the face of the world. Sequoia Capital investments are not necessarily done in fancy places. They are willing to meet start-up owners anywhere they want. They understand that young start-ups need to save money.
But just like everything in this world, Sequoia Capital investments are not perfect. It let go of some great opportunities like:
Investing in Apple, which it dropped out of after a short period
letting go of twitter because they wanted 20-30% share and the company offered 10%
Investing in Facebook
All in all, this hasn’t stopped the venture capital from making some great investment deals.
Here’s a list of the top 13 Sequoia Capital Investments ventures that got big
Paypal
PayPal revolutionized the way we pay for things. It made cashless transactions easy and Hassel-free. Sequoia Capital investments are majorly made in companies that provide solutions to a problem.
Companies like PayPal simplify peoples’ lives therefore they are bound to make profit.
Founder: Elon Musk, Max Levchin, Peter Theil
Founded in: 1999
Partner: Michael Moritz
Partnered in: 1999
Reddit
Reddit has become the core of funny online content. Although it’s a site where people discuss and comment on all kinds of topics, its GIFs are the most popular. Recently, Reddit users shook up the stock market which made clear the power that it possesses.
Founder: Steve Huffman
Founded in: 2005
Partner: Alfred Lin
Partnered in: 2014
Tumblr
Tumblr provides creative people all around the world to create, share and follow the content of their choice. The venture capital calls this idea authentic and said that when the idea was pitched in, it was, “equivalent of love at first sight”.
It’s beautiful to see when an investor shares the vision of the founder. It’s bound to be a success.
Zoom is a video conferencing app. It provides group messaging and online meeting services that became our survivor in the Covid situation. Its top-of-the-class video and audio qualities make meetings effortless.
Who doesn’t know what WhatsApp is? If you don’t, you might be living under a rock. It an online messaging, calling, and video calling app. Recently, WhatsApp has launched its new payment feature.
It has more than 100 million active users. It’s the most used messaging app in India. Sequoia Capital funded WhatsApp and helped it reach phenomenal heights.
Yahoo is an information site that brings together all the information on one platform for users to benefit from. Yahoo is creating personalized user experiences to make the task easier.
Founder: David Fello, Jerry Yang
Founded in: 1994
Partner: Michael Moritz
Partnered in: 1995
Google
Google, the world’s biggest search engine is also among Sequoia Capital Investments. You can find out information about everything on Google. By organizing different websites and indexing their content, Google provides the best possible results for user search. It is dedicated to improving the overall user experience and caters to all their needs.
Founder: Sergey Brin, Larry Page
Founded in: 1998
Partner: Michael Moritz
Partnered in: 1999
Glossier
Glossier is another company under Sequoia Capital Investments. It is a beauty brand that customizes beauty according to the person. It focuses on individual needs rather than providing one product that is to be used by everyone.
YouTube is the world’s greatest video-sharing site. It allows users to effortlessly upload videos for users to see. Sequoia Capital Investments helped the site become a platform for learning, entertainment and message spreading that also created tons of jobs.
Founder: Chad Hurley, Javed Karim, Steve Chen
Founded in: 2005
Partner: Roelof Botha
Partnered in: 2005
Instagram
Instagram has become extremely popular in very little time. It is the go-to app to upload art and photos for the huge audience that is at your disposal. Brands and small businesses can also promote their products through influencers.
Founder: Kevin Systrom, Mike Krieger
Founded in: 2010
Partner: Roelof Botha
Partnered in: 2012
Linkedin
Sequoia Capitals investments are about bringing unique ideas to life. It’s something that we all need but just cannot put a finger on. An online platform for businesses and employees that promotes jobs and servicepersons was much needed.
LinkedIn made it possible to link talented individuals to the employers that need them.
Founder: Reid Hoffman, Jeff Weiner
Founded in: 2002
Partner: Michael Moritz
Partnered in: 2003
Zomato
Zomato made the option of food delivery, wide open in India. It was present before but wasn’t used much. The brilliant idea of linking the restaurant to a hungry person worked wonders. What’s the use of good food without a foodie, right?
PicsArt is a popular online image editing app. It provides a wide range of features to present a simple photograph in the most creative way possible.
Founder: Hovhannes Avoyan, Artavazd Mehrabyan
Founded in: 2011
Partner: Mike Vernal, Stephanie Zhan
Partnered in: 2014
FAQ
How many employees does Sequoia have?
Sequoia Capital has around 760 employees.
What is sequoia capital
Sequoia Capital is an American venture capital firm.
Who founded Sequoia?
Sequoia was founded by Don Valentine in 1972. In the mid-1990s, Valentine gave control of the company to Doug Leone and Michael Moritz.
Conclusion
These were some amazing companies that made a mark in the world. Sequoia Capital Investments ventures have shaped these companies’ future for the better. It takes a great ‘eye’ to identify the true potential behind an idea. This venture capital continues to support bright minds with their finances.
Some recent sequoia capital investments include CoinSwitch Cuber, Pristyn Care, Druva, and Razor pay.
The make in India campaign focuses on sectors like oil and gas, railways, electronic systems,ports and shipping, renewable energy, roads and highways. Space, textile and garments, thermal power, tourism and hospitality and wellness.
Mr. Narendra Modi, Prime Minister of India, said
“I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity that come make in India,”
PROS of Make in India Campaign
Campaign for the masses
The Prime Minister emphasized on the development of labour intensive manufacturing sector. This campaign is to generate a lot of employment opportunities in Manufacturing.This would help National Manufacturing Policy in achieving objectives through this campaign. The aim is to increase the GDP from current 15-16% to 25% till 2022. (Manufacturing sector)
The purchasing power of people will get increased through employment. This will help to eradicate poverty. This would also help in the expansion of consumer base for companies.
Growth of Factories over the Years
Model of the Make In India campaign
The model of the campaign is look east and link west policy . This will strengthen the industrial linkages with other countries. This would also help to build bilateral ties with many countries.The growth model is Export-Oriented. This will improve India’s Balance of Payments. This would also help in piling up foreign exchange reserves.
An auto response mechanism will be formulated by the government. The Government also has decided to resolve issues about procedural clearings. This will be done at different levels in a given time frame. This is a positive step towards an industrial friendly environment.
Foreign investment will not only bring foreign capital. It will also bring technical expertise and creative skills .
Fortifying the Rupee
The emergence of the manufacturing industries would help in converting India. The nation would then will be a hub. A place for the fabrication of various commercial products. This would lead to be a grand collection of the FDI. All this in return would help to strengthen the rupee. This would help against the domination of the American dollar.
Up-gradation of technology
India is an underdeveloped country. This means that we lack various latest, new age mechanization. Lack of new technology is a big hurdle in the path to development of the nation. But due to the campaign a lot of investors would be attracted to India. This would give India an opportunity to upgrade to the latest version of technology.
Availability of Youth
The young generation is often referred to as a unending fuel. Youth comprises of a major Indian population . This youth often moves outside the nation to study and make a future. India due to the lack of young labor misses out on all the innovative and creative points. Make in India can make this possible by keeping the youth in the nation. This would also give them ample opportunities.
When it comes to a theoretical perspective. It can be seen that the campaign tends to violate the theory of comparative advantage. India should import the products that cost more at production in state .
Is the world ready for a second China? This goes as per the point made by Dr. Raghuram Rajan. Government of India wishes to convert India into a second China. India but has no time advantage like China.
India to stop imports?
Make in India will lead India to focus only on export. This will lead India to make some changes in it’s export promotion measures. This can have a devastating effect on the import bill.India suffers from a countless number of companies that are called infrastructural bottleneck. To overcome this India has to invest a huge amount over a span of some years. Generating such a big amount is a a hard task.
Agricultural negligence
Agricultural sector will take the greatest blow due to this campaign. India has 61% cultivable land. This will happen due to the introduction of industrial sector. This introduction would lead to the negligence of Agriculture.
The Make in India campaign focuses on Manufacturing Industries. To set up these a lot of industries have to be build up. The manufacture of these requires a lot of natural resources be it fuel, water land. So a lot of new build ups would cause in depletion of these.
Loss of Small businesses
The Make in India welcomes foreign companies. To invest and manufacture in India. This act eases up the rules for foreign trade and investment. This act may seem very healthy when it comes to foreign relations. But this would cause domination over small businesses . This would force them out of business.
Recognition of Indian Products
The make in India campaign would help increase the brand value of Indian products. But this wont help the brand when it would come to the upper middle class. The upper middle class are the people who can actually afford all this. So making a mark in front of them would be a great task.
Make In India
Pollution
India is currently unable to do anything with the problems like Pollution. According to stats Pollution Index of India is 76.50. The Make in India is supposed to increase this further. The level of Pollution in India would rise to levels never seen. This would make the condition in India worse. So, Make in India can help India economically. But would have adverse effects ecologically.
