Making ‘Make in India’ a green development project: A social cost-benefit analysis

Abstract

‘Make in India’ is an initiative program of the Government of India to encourage
multinational and domestic companies to manufacture their products in India. It is an
international marketing strategy, conceptualised by the Prime Minister of India, Sh. Narendra
Modi, to transform India into a global manufacturing hub. In this study, an effort has been made
to analyse this new investment project of Indian government. The main focus of the study is on
doing a social cost- benefit analysis of the ‘Make in India’ project. The benefits that Indian
economy and Indian people will get, and also the costs in terms of natural environment that
would be affected by this project, are discussed under this study. The inflow of foreign
investments in India in the form of setting up of new manufacturing units will bring countless
benefits for its people and economy as a whole, but at the same time they will certainly bring
with them several hidden costs that risks Indian natural environment resulting in deteriorated
people’s health and ecological scarcities. India cannot afford such hidden costs as it already
rank slow (112th) on Social Progress Index as far as the Environmental Quality is concerned
(Source: http://www.socialprogressimperative.org/). This social cost- benefit analysis
concentrates on identifying such hidden social and environmental costs of ‘Make in India’
project and finally providing some suggestions/recommendations so that ‘Make in India’ can
become a remarkable step in promoting a transition to a green economy.