For ‘Make In India’ to work, India first needs to become globally competitive

Bhoday Sales Corporation is tucked inside the industrial zone of Ludhiana. A small machine tooling factory with a net worth of not more than Rs 10 lakh, it makes manufacturing equipment for other plants in the city.

Of late, it has fallen on bad times. Sales are down. At one time, says its founder, 68- year-old Maan Singh, the company used to make four power presses a month. It now makes one a month.

Bhoday is far from being the only company that is struggling in Punjab. A story published last December in Scroll reported industrial units across the state – steel plants in Mandi Gobindgarh, sporting goods manufacturers in Jalandhar, textile units in Amritsar, bicycle-makers in Ludhiana – were shutting down or relocating to other states. A similar narrative is visible in industrial hubs in three other states that Scroll surveyed…

…Try and understand why and you arrive at the fundamental limitation of the “Make In India” programme.