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The IUP Journal of Business Strategy
Learning from China: Mitigating the Problems of Make in India Through Responsible Business Behavior
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Indian Government’s new policy of ‘Make in India’ has taken everyone by surprise, whether Indian or foreign country heads and/or entrepreneurs. This will make India a production hub, next only to China. Indian Government is trying to replicate China’s model through ‘Make in India’ slogan in all aspects, viz., production, GDP growth, market share, employment, and environment pollution. Therefore, this paper seeks to identify the effects of ‘Make in India’ by taking lessons from China and elaborate on the ways and means to combat the side effects on various stakeholders. The end result of the discussion is, bringing in a responsible business model for the businesses that are pursuing the ‘Make in India’ dream.

 
 
 

China and India are the two most emerging economies gaining considerable attention of the world due to their ability to rise from the status of poor developing economies to emerging economic power centers. Such accelerated growth in both the economies is due to liberalized foreign trade, attracting FDIs, relaxing price controls, increased industrial competition, growth-based government plans and policies, promoting domestic industries, rapid modernization, etc. Despite many similarities, their growth pattern differed in many aspects. China tried to gain control over the world market by using lower technologies and labor-intensive manufacturing strategies (Mathur, 2011). India’s economic growth accelerated due to exponential growth of service producing industries with robust sustainability of IT and ITES companies (Bosworth and Collins, 2008). The observations in Table 1 reveal that agricultural share in GDP in both the countries has fallen drastically during the last four decades.

 
 
 

Business Model Innovation, Responsible Business Behavior, Problems of Make in India, Production, GDP growth, Market Share, Employment, and Environment pollution.