Former Union Minister P. Chidambaram on Sunday described the Narendra Modi government’s ambitious ‘Make in India’ call as an event management initiative.
Speaking at a panel discussion on former RBI Governor D. Subbarao’s book Who moved my interest rate?, organised by the Indian Institute of Management-Bengaluru, Mr. Chidambaram said, “Make in India is to give a boost to manufacturing. It is not a question of whether it will work or not. It must work. However, today it is not working. I am sorry to be blunt, but it is only part of an event management [programme],” he said.
Referring to an interview given by R.K. Takkar, chairman and MD of public sector lender UCO Bank, the former Finance Minister said there is no demand for credit in the manufacturing sector, and this means there have been no fresh investments.
“I think the government must go back to the drawing board and find out how to make ‘Make in India’ work. It is must move from event management to actually laying foundation stones and inaugurating factories,” he said.
When asked about Goods and Services Tax (GST), he said, “There is a lack of clarity on what the GST rates will be. As far as I can see, there are serious differences between the economic division and the Revenue Department. There are serious differences between Union government and State Finance Ministers.”
He said the success of GST will depend on the standard rate fixed for it.
Earlier, the Congress leader defended his actions while he was Finance Minister. “There were always agreements and disagreements on various issues between the Centre and the RBI. Each regulator has an area of jurisdiction, but ultimately the buck stops at the government’s table. Various questions will be put to the government which was in power during crises,” he said.
Mr. Subbarao said differences between the Central bank and government are not unique to India. “Differences by themselves are not bad. In fact, having differences will contribute to improving public policies,” he said.
