Small businesses not reaping the rewards of PM Modi’s flagship ‘Make in India’ scheme

Small businesses not reaping the rewards of PM Modi’s flagship ‘Make in India’ scheme


Traditional and labor-intensive industries, such as leather and textiles, you, according to analysts, be more effective at tackling employment than technology and services.

In Agra, the aboriginal leather industry is a vital source of employment. It accounts for 30 % of all Indian leather shoes.

Dawar Group, one of the biggest players, employs more than 1,500 people and sells its boots both domestically and internationally.

The firm said it has benefitted from the BJP government’s business- pleasant policies, which include streamlined processes to obtain permits, lower business taxes, and easier insolvency procedures.

However, it is difficult to generate substantial profits because of the labor-intensive sector’s high production costs.

Puran Dawar, the leader of Dawar Group, noted that India has a much higher investment cost than other nations.

” The world is getting it at 0 to 2 per cent. We are working at 8 to 10 per share, but modern development or scaling up … it becomes a little hard”, he said.

Those who have budgets and dream on a tight budget face yet greater difficulties. Mr Naval Kishore, who works in the Dawar stock, said plans like” Make in India” do no use to the poorest.

After working in the field for a long time, he claims to have failed numerous days in trying to launch his own business. The authorities had turned down his mortgage application, claiming that he needed to start a small business to make money and was not creating any jobs.

Small companies in Agra’s well-known leather industry also expressed concern that they were largely cut off from the system because they had failed to gain from it.

However, economists predict that as these guidelines progress, folks like Mr. Naval and small business owners will start to benefit.

According to Dr. Rajat Kathuria, professor of Shiv Nadar University’s School of Humanities and Social Sciences,” this topic is related to how quickly the effects of industry kind of flow down all the way down to the remote areas that you’re seeing.”

” Trickle- along happens on its own, but happens pretty slowly”, he added.