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What is the primary source of funding needed for the Make in India campaign?
  • a)
    Foreign Direct Investment (FDI).
  • b)
    Tax revenues.
  • c)
    Private donations.
  • d)
    Domestic savings.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the primary source of funding needed for the Make in India cam...
Foreign Direct Investment (FDI) is the primary source of funding needed for the Make in India campaign.

Explanation:

1. Importance of Make in India campaign:
The Make in India campaign was launched by the Government of India in 2014 with the aim of transforming India into a global manufacturing hub and promoting domestic manufacturing. The campaign focuses on attracting investment, fostering innovation, enhancing skill development, protecting intellectual property rights, and building a robust infrastructure.

2. Foreign Direct Investment (FDI):
FDI refers to the investment made by foreign entities into the domestic economy of a country. It is an essential component of economic growth as it brings in capital, technology, and expertise which can boost productivity, create job opportunities, and stimulate economic development.

3. Role of FDI in the Make in India campaign:
The Make in India campaign seeks to attract FDI in various sectors such as manufacturing, infrastructure, defense, electronics, and automobiles. FDI plays a crucial role in funding the campaign as it provides the necessary capital for setting up industries, establishing manufacturing units, and upgrading infrastructure.

4. Advantages of FDI in the Make in India campaign:
- Capital infusion: FDI brings in the much-needed capital for investment in the manufacturing sector, which helps in the creation of new industries and expansion of existing ones.
- Technology transfer: Foreign investors often bring advanced technology and know-how, which can enhance productivity and competitiveness in the domestic manufacturing sector.
- Job creation: FDI leads to the establishment of new industries and expansion of existing ones, resulting in increased job opportunities for the Indian workforce.
- Export promotion: FDI can boost exports by improving the quality and competitiveness of Indian products, thereby contributing to the country's economic growth.

5. Other sources of funding:
While FDI is the primary source of funding for the Make in India campaign, it is not the only source. The government also relies on tax revenues, both direct and indirect, to finance the campaign. Tax revenues are generated through various taxes such as income tax, corporate tax, goods and services tax (GST), and customs duties. These funds are then allocated towards infrastructure development, skill enhancement programs, and other initiatives under the Make in India campaign.

In conclusion, foreign direct investment (FDI) is the primary source of funding needed for the Make in India campaign as it provides the necessary capital, technology, and expertise to promote domestic manufacturing and transform India into a global manufacturing hub.
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What is the primary source of funding needed for the Make in India cam...
The primary source of funding needed for the Make in India campaign is Foreign Direct Investment (FDI).
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