Thursday, May 21, 2026
CJP could be the answer.
To boost manufacturing, a 'Make in India' initiative was launched by Prime Minister Narendra Modi on 25 September 2014. The aim was to increase the growth rate and, as a result, the share of manufacturing to 25% of GDP by 2022. In fact, the share of manufacturing has fallen from 16.7% of GDP in 2013-14 to 15.9% in 2023-24. wikipedia. In May 2026, "India is preparing a fresh manufacturing push centered on identifying nearly 100 products that are either not produced domestically or are inadequately manufactured despite existing capability, signalling a sharper industrial policy focus amid shifting global supply chains, geopolitical tensions and the country's ambition to emerge as a global manufacturing hub." TOI. "The manufacturing activity's share in the GDP has declined to 13% in 2024 compared to 16% in 2015," because, "India's manufacturing growth is constrained by low spending on research and development (R&D) at just 0.6% of GDP and it should increase to 2% by 2035." ET. Countries "trying to emulate the East Asian model would produce, at best, manufacturing enclaves, with a tiny sliver of productive firms integrated into global value chains while the bulk of the labor force remains stuck in low-productivity activities," wrote Prof Dani Rodrik. "Competing successfully on world markets and with China at home requires skills, technologies and other capabilities that are in short supply," and "The result is that even when countries manage to pull more workers into manufacturing, this happens through the expansion of small-scale, mostly informal, enterprises and at the expense of productivity." Chief Economic Advisor V Anantha Nageswaran and Finance Minister Nirmala Sitharaman have complained about lack of investment by the private sector even though profits have increased by 30% since the pandemic. Mr Nageswaran blames "nepo babies" who choose to set up family offices elsewhere and live on passive investments rather than risk in new ventures. "The real reason India's richest don't want to invest domestically - and, possibly, why they take some of their cash abroad - is because they estimate local political risk as being too high." "If they earn money in India, their first instinct is to try and diversify geographically, so they escape New Delhi's control as much as they can." And if Indians are reluctant to invest here, why would multinationals? wrote Mihir Sharma. To protect Indian industries from competition the government raised tariffs on imports. "As of 2024, the average tariff on non-agricultural goods in India stood at 13% compared to significantly lower rates in China (6.5%), Malaysia (5.3%) and Vietnam (8.3%)." "In parallel, the government has significantly expanded the use of Quality Control Orders (QCOs) especially since 2020." CSEP. And so, "A report by the Global Trade Research Initiative (GTRI) warns that QCOs on fasteners are raising costs, choking supplies and disrupting production." "cutting MSME output and risks triggering bottlenecks in sectors such as automobiles and infrastructure." "Fasteners - bolts, nuts, screws, washers, rivets and studs - are produced in thousands of variants, often in small batches on the same machine." QCOs are restricting production. ET. "Large companies and factories have failed to generate jobs at the pace required to absorb a growing labor force. In that vacuum, the unorganized sector - small shops, workshops, grocery stores, tiny manufacturing units and street vendors - remains the fallback." "For 2025, the government estimates 79.2 million such entities, up from 73.4 million in 2023-24. These enterprises generated about Rs 20 trillion in output in 2025, compared to Rs 15.4 trillion in 2025-16." But, "Their share in India's value added has fallen from 9.1% in 2015-16 to 6.3% in 2025." Mint. Since profits have fallen, growth in wages of workers has stagnated. Wages of non-unionised contract workers have stayed at between Rs 10,000-15,000 per month for years and are insufficient to pay for rent and food. Workers in Haryana and Noida protested last month. BBC. Perhaps, it would be best if the government stayed out and didn't try to help. But control is power, and a life of no restraint. The Cockroach Janata Party (BBC) represents the mute. CJP could be the answer. Vote CJP.
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