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Vaishnaw credits Make-in-India for Bengaluru plant's success, responding to Rahul Gandhi's Karnataka ecosystem claim.
Summary
Union Minister Ashwini Vaishnaw credited Prime Minister Narendra Modi’s 'Make-in-India' program for the success of a Bengaluru plant. This statement was made in response to Congress leader Rahul Gandhi's comments touting Karnataka's ecosystem. The exchange highlights the political debate over the drivers of industrial growth and the effectiveness of government initiatives, making it relevant for understanding current economic policy discourse.
Key Points
- 1Union Minister Ashwini Vaishnaw credited the 'Make-in-India' program for industrial success.
- 2The Minister's remarks were made in response to Congress leader Rahul Gandhi.
- 3The specific industrial development highlighted was related to a manufacturing plant in Bengaluru.
- 4The 'Make-in-India' initiative is a flagship program of Prime Minister Narendra Modi's government.
- 5Rahul Gandhi had emphasized the role of Karnataka's ecosystem in fostering industrial growth.
In-Depth Analysis
The recent exchange between Union Minister Ashwini Vaishnaw and Congress leader Rahul Gandhi regarding industrial development in Bengaluru offers a fascinating lens through which to understand India's ongoing economic policy debates, particularly concerning the 'Make in India' initiative and the role of federalism in economic growth. This seemingly simple political retort encapsulates complex discussions about the drivers of industrial success, the impact of central government policies versus state-level ecosystems, and the overall vision for India's manufacturing sector.
**Background Context: India's Manufacturing Journey**
India's industrial policy has seen several transformations since independence. Initially, the focus was on import substitution and heavy industries, exemplified by the Industrial Policy Resolution of 1956. The economic reforms of 1991 liberalized the economy, opening doors to foreign investment and reducing state control. However, despite these reforms, India's manufacturing sector's share of GDP remained stubbornly low, hovering around 15-17%, significantly lower than many East Asian economies. This led to concerns about job creation, dependence on imports, and the country's ability to integrate into global supply chains.
It was against this backdrop that Prime Minister Narendra Modi launched the 'Make in India' initiative on September 25, 2014. The program's ambitious goal was to transform India into a global manufacturing hub, increase the manufacturing sector's share of GDP to 25% (initially by 2022, later extended), and create millions of jobs. It sought to achieve this by attracting foreign direct investment (FDI), fostering innovation, enhancing skill development, and improving the business environment through ease of doing business reforms. Its four pillars were 'New Processes', 'New Infrastructure', 'New Sectors', and 'New Mindset'.
**What Happened: A Political Credit Claim**
The news article highlights a political exchange. Congress leader Rahul Gandhi credited Karnataka's robust industrial ecosystem for fostering growth, implicitly suggesting that local conditions, rather than central policies, were the primary drivers. In response, Union Minister Ashwini Vaishnaw thanked Gandhi for
Exam Tips
This topic falls under GS Paper III (Indian Economy) for UPSC, and general economy sections for SSC, Banking, and State PSC exams. Focus on government schemes, industrial policy, and Centre-State economic relations.
Study the 'Make in India' initiative in detail: its objectives, pillars, achievements, and challenges. Be prepared to critically analyze its effectiveness in job creation, FDI attraction, and boosting manufacturing output.
Understand the concept of 'federalism' in the Indian economic context. Questions often involve the respective roles of central and state governments in industrial development, infrastructure, and investment attraction. Prepare for questions like 'Critically evaluate the role of state governments in the success of central economic initiatives.'
Familiarize yourself with related economic indicators: manufacturing sector's share in GDP, FDI inflows, employment data in manufacturing, and India's ranking in Ease of Doing Business reports. These provide objective data points for analysis.
Be aware of common question patterns: direct questions on government schemes, comparative analysis of different economic policies, and analytical questions requiring you to present both pros and cons of an initiative or policy.
Related Topics to Study
Full Article
The Union Minister thanked the Congress leader for “acknowledging the success” of Prime Minister Narendra Modi’s Make-in-India programme.

