Indian Prime Minister Narendra Modi launched his 'Make in India' campaign with great fanfare on Thursday, including an impressive website and eye-catching logo, but more must be done before it takes off, analysts say.
Modi unveiled the initiative aimed at reviving the manufacturing sector through higher domestic and foreign participation ahead of his first official visit to the U.S.
Key aspects of the framework include time-bound project clearances through a single online portal, an eight-member team dedicated to answering investor queries within 48 hours and addressing key issues including labor laws, skill development and infrastructure.
Under the campaign, the government aims to raise the manufacturing sector's share of gross domestic product (GDP) to 25 percent in the next decade from around 15 percent currently.
Elements of success
The initiative highlights the government's determination to build investor confidence and increase investments, economists say, but success hinges on the pace at which infrastructure investment is undertaken, the availability of skilled labor and amendments to land acquisition legislation.
"While the 'Make in India' campaign is a step in the right direction, it will have to be followed up by more tangible measures such as building ports, highways, increasing power generation and so on, to make India a manufacturing hub," Sonal Varma, chief India economist at Nomura wrote in a note.
Poor infrastructure remains a major deterrent for foreign investment in Asia's third largest economy, which ranked 85 out of 148 for its infrastructure in the World Economic Forum's 2013-2014 Global Competitiveness Report.
While it's reassuring to hear the government has a plan, "Make in India" feels like a marketing tool, said Shishir Sinha, research analyst for Frontier Strategy Group, a consulting firm focused on emerging markets.