'Make in India' – RBI Governor expresses caution

Expressing a note of caution on PM Narendra Modi's 'Make in India' campaign, RBI governor Raghuram Rajan said he is cautioning against picking a particular sector such as manufacturing for encouragement simply because it worked well for China, as India is different and developing at a different time, so the country should be agnostic about what will work. Speaking at the Bharat Ram Memorial Lecture in Ficci, Rajan also said he does not think such a specific focus is intended. He is also counselling against an export led strategy that involves subsidising exporters with cheap inputs as well as an undervalued exchange rate because it is unlikely to be as effective at this juncture. He also said India should also focus on domestic demand and create a unified market with a view to reduce transactions cost. Modi had announced the 'Make in India' programme at his first Independence Day speech from Red Fort, to attract overseas investments and make the country a global hub.