OECD chief economist supports RBI governor's Make for India view, insists, integrate it into Make in India

By Our Representative
Catherine Mann, chief economist of the Organization for Economic Co-operation and Development (OECD), has come out in sharp defense of the view taken by Reserve Bank of India governor Dr Raghuram Rajan, who stirred controversy late last year-end by declaring Make for India was a better policy option to follow as against Prime Minister Narendra Modi’s Make in India campaign. Talking with newspersons in Ahmedabad, Mann said, it would be better if India’s focus on “Make in India” includes the “Make for India” concept of Dr Rajan.
Without naming Dr Rajan, Mann declared, "Make in India should be Make for India", pointing out, she is "quite aware" of strong views in the country in favours of Make for India. Mann was at the Indian Institute of Management-Ahmedabad (IIM-A) to deliver a lecture on Macroeconomic Challenges of India in context of the recently released report, ‘Third OECD Economic Survey of India’.
Suggesting that Make in India appears to suggest that India is seeking to follow the Chinese model, Mann said, China has developed islands of progress in its special economic zones where there are no-tax regimes with export as the key direction. This can result in short-term gain, but does not take into account the interests of the entire country's economy. She added, the Make in India concept does not clarify make for whom, whether for export to other countries.
In Dr Rajan’s view on Make for India, Modi 'Make in India' campaign assumes an export-led growth path of China. Speaking at an event organized by the Federation of Indian Chamber of Commerce and Industry (FICCI), he had insisted, it should instead it should be 'Make for India' that would produce for the internal market. He had underlined, an incentive-driven, export-led growth or import-substitution strategy may not work for India in the current global scenario.
Talking to newspersons after her lecture, Mann took a similar view, saying, China’s export model has would have limited success. It does not go far enough. There is a huge market within the country which needs to be tapped. Investments from all sources should beencouraged, allowing internal businesses to flourish. While there have been some policy declarations such change in the labour law, the main challenge is how these policy changes are implemented.
Pointing towards the need to come up with several reforms, Mann said, without naming any particular state, already, some Indian states are implementing progressive laws that will foster employment. The Prime Minister has provided a business-friendly umbrella for other states to act. While some of the states have gone ahead, others have not. The political process of implementing the reforms is challenging.
Answering a question on labour reforms, Mann asserted, they are extremely important because the current labour law may have some good points, but is does not help generate employment. There is a need to loosen the law in order to cover the informal labour market, contract workers, and other ill-paid workers. There are of course complexities in bringing about changes laws related with in tax, labour, wages and business. The present uncertainty must end.
To yet another question as to what she thought of the Government of India’s recent decision to redo the way it calculates GDP, which put India’s growth in 2013-14 at 7.4 per cent instead of 5 per cent under, the OECD chief economist said, the new method of calculation is more in tune with international norms. If under the earlier calculation large sectors of the economy were not part taken into account, under the new methodology several small firms’ performance has been mobilized into national accounts.

Comments

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani* India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor* Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas* November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad* The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad* On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya.

Green Revolution’s reliance on chemical fertilizers, pesticides contributing to Punjab's health crisis

By Bharat Dogra, Jagmohan Singh* Punjab was once synonymous with robust health, particularly in its rural areas, where farmers were known for their strength and vitality. However, in recent years, reports from these villages tell a different story, with rising cases of serious health issues, including cancer. What led to this decline? The answer lies largely in the erosion of good nutrition, once a hallmark of Punjabi village life. The health of a population is closely tied to its nutrition, and Punjab's reputation as a provider of high-quality nutrition has suffered greatly. The loss of biodiversity in agriculture has led to a decrease in the variety and quality of crops, resulting in poorer nutrition. Pulses, a key source of protein, have seen a steep decline in cultivation due to the disruption of traditional farming practices by the Green Revolution. This has had a detrimental effect on both soil and human health. Although pulses are still available in the market, they are exp

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor* Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.

Search This Blog