Effect of 'Make in India Campaign' …

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Effect of 'Make in India Campaign' on PPC.Why?

Posted by Pardeep Rao Shab 7 years ago

CBSE > Class 12 > Economics

3 answers

Bhuvnesh Upadhyay 7 years ago

PP curve will shift to right

1Thank You

Kumar Abhinav 7 years ago

'Make in India campaign' will increase the inflow of foreign capital. It will increase the productive capacity of our economy and as a result PPC will shift rightward.

1Thank You

Gaurav Seth 7 years ago

<i>A production possibility frontier (PPF) / production possibility curve (PPC) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.</i><a href="https://qph.fs.quoracdn.net/main-qimg-9cc993c06dbb28fc0f0c18b4267722db" mobile_app_target="external"></a>

Government's Make in India campaign aims at transforming the country into a global manufacturing hub and has already made a "tremendous" impact on the investment climate as evidenced by the growth in Foreign Direct Investment (FDI).

So, when investments increases by make in india campaign, it will make PPC shift rightward as production will increase. It represents economic growth.

Economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier (PPF).<a href="https://qph.fs.quoracdn.net/main-qimg-f3f13297be1c76f46e5a5b2ab78bf4e9" mobile_app_target="external"></a>