Make in India
In late September, Indian Prime Minister Narendra Modi’s government launched the Make in India campaign. The campaign will focus on physical infrastructure development and creating a digital network. Combined, these achievements will make India a global hub for the manufacturing of goods ranging from cars to software, satellites to submarines, and paper to power.
In inviting domestic and international companies to invest in India, Modi said that his government’s focus was not only to “look east,” but also to “link west.” India’s newly formed government intends to strengthen ties with the U.S. in the manufacturing domain. “The Make in India campaign is a Lion’s Step towards making the country a destination for global manufacturing,” said Modi.
“Zero defect, zero effect”
According to Modi, “FDI” should be understood to mean “first develop India,” as well as foreign direct investment. Modi intends to take Indian manufacturing to a level where it complies with a “zero defect, zero effect” policy. “Let’s think about making our product which has ‘zero defect’ so that it does not come back (get rejected) from the world market and ‘zero effect’ so that the manufacturing does not have an adverse effect on our environment,” said Modi.
Assuring foreign companies of India’s intention to develop zero defect, zero effect manufacturing facilities, Modi extended an open invitation to the world. “Be it plastics or cars or satellites or agricultural products, come make in India,” he said. Modi’s remarks came with the clear message that the country will move on its low-carbon and sustainable growth trajectory, while adopting clean technology and renewable energy in a big way.
Foreign investments can stimulate growth in the Indian economy. Such growth bodes well for ETFs (exchange-traded funds) investing in Indian equities such as the WisdomTree India Earnings Fund (EPI), the PowerShares India Portfolio (PIN), the iShares MSCI India ETF (INDA), the Vanguard FTSE Emerging Markets ETF (VWO), and the iShares MSCI Emerging Markets Index Fund (EEM).