The International Monetary Fund (IMF) has stressed on the fact that India should increase the quality, sophistication, and diversification of manufacturing. This is stated in a working paper titled ‘Make in India: Which Exports Can Drive the Next Wave of Growth.’ The objective of this paper is to highligh how India can expand its exports by diversifying into high end value added activities and improving the quality of goods and services.
The paper also states that India’s exports from the year 1990 to 2013 has been spectacular and this has put at par with world’s high-income economies in terms of service-product sophistication and as a share of total exports.
Here it should be noted that under the ‘Make in India’ initiative India has received tremendous response from multinational companies and when Prime Minister Narendra Modi visits US in June, it is expected that US manufactures are very keen to invest big time in manufacturing in India and for this they are likely to seek some trade and tax benefits.
The paper also suggested that India should expand exports to new markets, especially South Asian neighbours and this would be of tremendous help to the nation’s economy.
By Atanu Kumar Das
