You are here: Home » Economy & Policy » News
Business Standard

Make in US vs Make in India can be a win-win: Mahindra

Says there is a possibility of conflict but a win-win situation can be fashioned by taking a sectoral approach

Press Trust of India  |  New Delhi 

Anand Mahindra

Conflict of interest between US President Barack Obama's pitch for Make in America and Prime Minister Narendra Modi's Make in India may arise but a 'win-win' situation can be fashioned if manufacturers on both sides embed themselves in each other's supply chains, according to Mahindra Group Chairman Anand Mahindra.

"The fact that there could be a conflict between the desire to Make in America and Make in India is a very real sort of possibility...You cannot pretend that the conflict may not arise. The question then is how does one fashion a win-win?," Mahindra told PTI here.

Outlining the solution, he said one of the ways would be to take a sectoral approach.

"In certain sectors it may make sense in Make in India approach and in others it may make more sense for Make in America," he said.

Mahindra said President Obama had tried to create the "win-win situation" during his trip with his announcements of $1 billion dollar credit line for American companies exporting to India and $2 billion facility for financing renewable energy initiatives in India.

"In essence, he is financing Make in India. It was an attempt to fashion win-win by saying in this sector it benefits America, because American companies provide technology and American suppliers get into the (Indian) market...

"This is one approach that you can be even handed and you say in this area 'I am going to support Make in India, finance renewables here and the other I am going to make in the US. The key here is that the American suppliers will supply to renewables developers here (in India)."

Stressing on the need for becoming a part in each other's supply chains, Mahindra said: "The goal has to be both India and America embed themselves in each other's supply chains. As long as trade between the two countries improves, even if they are making in America, if Indian companies are getting a chance to export components in America and sub-assemblies to them, we gain."


Similarly, Americans need to understand that when they make in India and India grows at 8 per cent there will be enormous opportunities for American companies become a part of the supply chain, he added.

"Fortunately, India's economy has opened up and nobody should have an objection to Make in India because we don't now have a local content rules in most of our industries. If you assemble a car in India you can buy components from wherever you want," Mahindra added.

Stating that the world today is a global supply chain, he said: "What looks like Make in India cannot help but involve 'make in somewhere else' for the people who supply here. So the question is make what, where? You cannot have 100 per cent made in one location.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 27 2015. 14:10 IST
RECOMMENDED FOR YOU
.