Is PM Modi Selling India To Foreign Hands?

Is PM Modi Selling India To Foreign Hands?

What exactly 'Make in India is...'

Modi Government won the election by promising jobs galore through rapid industrial growth and
However, industrial jobs are not grow ing fast anywhere in the world. Modern technology is increasingly mechanizing industries, and manufacturing requires ever workers per unit of output. Many US industries have moved to China seeking lower wages somehow Apple for. Virtually all its products are assembled in China, components made in several countries. Obama, like Modi, would like Apple to do more manufacturing.

We would say that Apple phones are made in the US, and merely manufactured in China. Historically, making and manufacturing meant the same thing. But not anymore.
When Apple started selling smartphones for $300, China’s share from the assembly was $7. Apple $150, of its value through innovation, marketing, and profits. The remaining value was split among component suppliers, transporters, and minor partners. If Apple gets $150 of a phone’s value and China gets only $7, is the phone really made in China? No, I would say it is made in the US, and manufactured in China.

The key parts of making goods are shifting to innovation design and marketing, not manufacturing components assembling them. What matters is value capture, not the manufacture. Indian companies have begun replicating Apple’s approach. Micromax has ousted Samsung as India’s top smartphone seller. Other Indian smartphone companies (Karbonn, Lava) are using the same approach. They design their cellphones, which are then manufactured and imported from China, As in Apple’s case, one could argue that Micromax’s cellphones are really made in India, and merely manufactured in China.

Companies like Micromax, Karbonn and Lava may one day start assembling phones in India if Modi creates the conducive. Even so, going by Apple’s experience, this may add very modestly to their share of value capture.
Let’s be clear, traditional manufacturing is not dying. it will grow in volume and employment for a long time. The newcomers occupy only a small part of the economics space today. In traditional industries, “make“ and “manufacture“ may remain synonymous. But let us prepare for a future where, increasingly, “manufacture“ will be just a small part of "make".
So , please first understand, don't blame anyone before having enough knowledge. and please at least google it (There is no best Indian search engine I know..:)..).What is 'Make in India' before asking silly questions like. How can the Indian PM Modi use an iPhone, when he himself launched the project 'Make in India'? If Narendra Modi promotes "Make in India" then why does he use a BMW car for commuting?

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