L&T Chairman AM Naik slams ‘Make in India’ initiative after it failed to create jobs

Larsen and Toubro Chairman AM Naik said the government’s ambitious ‘Make in India’ campaign has failed to create the desired number of jobs as most companies prefer importing goods instead of manufacturing it locally.

Speaking to business daily LiveMint, Naik said there is a lot to be achieved under the government’s Make in India initiative. He also explained that more jobs are currently being “exported” out of India since there focus on local manufacturing is low.

Naik, who also heads the National Skill Development Corporation (NSDC), a public-private partnership, expressed concern over the fact that Indian companies are importing more goods compared to the ones which are locally manufactured.

Giving an explanation as to why Indian companies are going for more imports, he said Indian companies presently do not have many options for financing, but imports come with credit facilities.

Data on various portals including Centre for Monitoring Indian Economy (CMIE) shows that unemployment has increased in the country.

While India is burdened with creating employment opportunities for 10 million people every year, it has failed to do so due to a slump in consumer demand.

Meanwhile, economic growth has slowed down on the back of decreasing investments and an overall demand slowdown. Experts suggested that the growth slowdown may rise during the current fiscal.

Naik told the publication that job creation in sectors like manufacturing has failed to match the supply of skilled labour. He said there is a “mismatch” between the right skills and jobs.

He went on to say that the ongoing trade war between the US and China was an “emerging opportunity” for several countries including India. However, only countries like Vietnam and Thailand have taken advantage of the situation.

Naik also stressed on the fact that authorities need to take steps to rope in higher foreign investments and create a conducive environment for businesses.

Source : Various