Reserve Bank Governor Raghuram Rajan today said it was a ‘worthwhile ambition’ to pursue Make In India campaign but cautioned that the whole effort should not be made towards producing for overseas markets as global slowdown could create problems.
The Reserve Bank chief also underlined the need for creating conducive regulatory atmosphere and infrastructure for promoting manufacturing and services sector.
“It is a worthwhile ambition to make in India, to produce in India. Let us not think too much where do we sell. Let us create the conditions both for manufacturing and service jobs.
We may end up with world class service firms, a few world class manufacturing firms and a few extraordinary domestic firms which are focused on domestic market,” he said.
The RBI governor, who is on a two-day visit to Kashmir, was replying to questions of students from Kashmir University’s Business School at SKICC here.
“The beautiful thing is that you do not have to choose who we produce for. What we need to do is build up the infrastructure, work on simplifying business regulations and build good human capital,” he said.
Rajan, however, added that the Modi government’s flagship scheme should not entirely focus on outside markets.
“By all means we should try our best to produce for the world but if the world is growing slowly, there would not be as much demand as when the world is growing fast,” he added.
Prime Minister Narendra Modi had launched Make In India campaign in September last year to make the country a hub of global manufacturing and create jobs for growing population.