Working Paper

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

Chang Woon Nam, Sumin Nam, Peter Steinhoff
CESifo, Munich, 2017

CESifo Working Paper No. 6431

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.

CESifo Category
Fiscal Policy, Macroeconomics and Growth
Industrial Organisation
Keywords: development stage theory, flying-geese paradigm, industrial growth and specialisation, Make in India, East Asia, international comparison
JEL Classification: O100, O400, O500, L600