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CESifo Working Paper Details

Modi's 'Make in India' Industrial Reform Policy and East Asian Flying-Geese Paradigm

Chang Woon Nam (Website), Sumin Nam, Peter Steinhoff

CESifo Working Paper No. 6431 (March 2017)

Primary CESifo Category: [6] Fiscal Policy, Macroeconomics and Growth

The on-going ‘Make in India’ campaign aims at manufacturing revival. Its characteristics resemble East Asian industrial reform and growth policies based on the flying-geese model which highlights ‘step-by-step’ changes in a country’s specialisation pattern and global competitiveness accompanied by economic growth. Unlikely, ‘Make in India’ comprises heterogeneous measures ‘simultaneously’ supporting industries in different development stages from labour and capital-intensive to high-tech industries and modern services. Moreover issues like world-market uncertainty discouraging export activities; poverty-reduction-oriented labour-industry promotion vs overall productivity increase; and complementary role of IT services for industrial modernisation and growth, will shape the success of India’s diversified industrial policy.

Keywords: development stage theory, flying-geese paradigm, industrial growth and specialisation, Make in India, East Asia, international comparison

JEL Classification:
[L600] Industry Studies: Manufacturing: General
[O100] Economic Development: General
[O400] Economic Growth and Aggregate Productivity: General
[O500] Economywide Country Studies: General

Additional CESifo Category:
[11] Industrial Organisation

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