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Make in India is the flagship initiative of the BJP-led NDA government to stimulate domestic manufacturing and attract international investment to the Indian economy. Mr. Narendra Modi, the Indian Prime Minister, first mentioned the key in his maiden Independence Day address from the ramparts of the Red Fort and launched the campaign in September 2014 with the specific intent of reviving manufacturing businesses and emphasizing critical sectors in India amid growing concerns that most entrepreneurs are leaving the country due to its low rank in ease of doing business ratings.
Table of Contents
- Make in India – Objectives
- Make in India – Vision
- Why does the PM want to Make it in India?
- Make in India – Advantages
- Make in India Logo
- Make In India – 25 Sectors in Focus
- Why Make in India?
- Make in India – Initiatives
- Make in India – Schemes
- Make in India – Progress
- Make in India – Challenges, Criticisms & Concerns
Make in India – Objectives
The Make in India project has numerous objectives. They are as follows:
- Increase annual manufacturing sector growth to 12-14 percent.
- Increase the number of manufacturing jobs by 100 million by 2022.
- Increase the manufacturing sector’s contribution to GDP to 25% by 2022.
- Developing necessary skill sets among urban poor and rural migrants to promote inclusive growth.
- Domestic value addition and technological depth in the manufacturing sector have increased.
- The growth is environmentally sustainable.
- Increasing the Indian manufacturing sector’s global competitiveness.
Make in India – Vision
Manufacturing currently accounts for slightly more than 15% of national GDP. This program aims to increase this to a 25% contribution, as observed in other Asian developing countries. The government intends to create jobs, attract significant foreign direct investment, and transform India into a favored manufacturing hub worldwide.
The Make In India campaign logo is an exquisite lion inspired by the Ashoka Chakra and intended to reflect India’s achievement in many areas. The Prime Minister dedicated the campaign to the famous patriot, philosopher, and political leader Pandit Deen Dayal Upadhyaya, born on the same date in 1916.
Why does the PM want to Make it in India?
The Prime Minister urged everyone involved in the campaign, particularly entrepreneurs and corporations, to step up and fulfill their responsibilities as Indian citizens by First Developing India and for investors to endow the country with foreign direct investments.
The Prime Minister further stated that his administration would assist investors by making India a pleasurable experience and that his administration saw comprehensive national development as an article of faith rather than a political agenda. He also laid the groundwork for his vision of a technologically sophisticated Digital India to complement Make In India. He emphasized the job creation and poverty relief that would inevitably follow the campaign’s success.
Make in India – Advantages
The Make in India program has resulted in several positive outcomes for the country. The following are some additional benefits that have resulted from this trip.
- Creating new job opportunities.
- Increasing GDP via accelerating economic growth.
- The rupee will rise as FDI inflows increase.
- Small manufacturers will benefit, mainly if foreign investors invest in them.
- When countries invest in India, they bring with them cutting-edge technology in a variety of industries.
- As a result of the Mission’s many initiatives, India has risen in the EoDB index.
- Setting up manufacturing centers and companies in rural areas can also help these communities thrive.
Make in India Logo
The lion is the Make in India logo. It’s a cog-filled lion’s silhouette. This represents manufacturing, national pride, and power.
Make In India – 25 Sectors in Focus
The government of India has designated 25 critical areas for the Make in India program that would be adequately promoted. These are the sectors with the highest likelihood of FDI (foreign direct investment), and investment would be encouraged by the Indian government.
On the campaign’s launch, Prime Minister Mr. Modi stated that the development of these sectors would ensure that the world would readily come to Asia, particularly to India, where the availability of both democratic conditions and manufacturing superiority made it the best destination, especially when combined with the effective governance intended by his administration.
25 Sectors in Focus are as follows:
- Automobile Components
- Automobiles
- Aviation
- Biotechnology
- Chemicals
- Construction
- Defence manufacturing
- Electrical Machinery
- Electronic Systems
- Food Processing
- IT and BPM
- Leather
- Media and Entertainment
- Mining
- Oil and Gas
- Pharmaceuticals
- Ports
- Railways
- Renewable Energy
- Roads and highways
- Space
- Textiles and garments
- Thermal Power
- Tourism and Hospitality
- Wellness
Why Make in India?
The government has chosen to focus on manufacturing for a variety of reasons. The following are the most important:
- The services sector appears to have led India’s economic story over the last two decades. This strategy paid off in the short run, as India’s IT and BPO sectors soared, and the country was nicknamed the “back office of the world.” Even though the services sector’s portion of the Indian economy increased to 57 percent in 2013, it generated only 28 percent of jobs. As a result, the manufacturing sector must be expanded to increase jobs. Because of the country’s demographic dividend, the services sector now has modest absorption potential.
- Another reason for launching the campaign is India’s dismal manufacturing situation. Manufacturing accounts for only approximately 15% of the Indian economy overall. This is significantly lower than our East Asian neighbors. When it relates to goods, there is a general trade imbalance. The services trade surplus barely covers one-fifth of India’s goods trade deficit. This trade deficit cannot be addressed alone by the services sector. Manufacturing will have to contribute. The government hopes to encourage domestic and foreign enterprises to engage in manufacturing in India, which will benefit the sector and create jobs at both the skilled and unskilled levels.
- According to some research, no other sector appears to have a significant multiplier effect on a country’s economic growth as manufacturing. Because the manufacturing sector has more backward links, growth in manufacturing also encourages growth in other sectors. This results in more companies, investments, innovation, and an overall more significant living level in an economy.
Make in India – Initiatives
- The railway, insurance, defense, and medical device industries have been made more open to Foreign Direct Investment (FDI) for the first time.
- The automatic route’s maximum FDI restriction in the defense sector has been enhanced from 49 percent to 74 percent. On May 16, 2020, Finance Minister Nirmala Sitaraman announced an increase in FDI.
- Under the automated route, 100 percent FDI is permissible in construction and designated rail infrastructure projects.
- There is an Investor Facilitation Cell that aids investors from the time they arrive in India till they leave. This was established in 2014 to provide services to investors at all stages, including pre-investment, execution, and post-delivery.
- The government has taken initiatives to enhance India’s ranking in the ‘Ease of Doing Business.’ In 2019, India climbed 23 points in the Ease of Doing Business, ranking 77th place, making it the highest-ranked country in South Asia.
- The Shram Suvidha Portal, as well as the eBiz Portal, has been launched. The eBiz portal provides one-stop access to eleven government services related to launching a business in India.
- Other licenses needed to start a business have also been relaxed. Reforms are being implemented in areas like property registration, tax payment, obtaining a power connection, contract enforcement, and insolvency resolution.
- Other reforms include the licensing process, time-bound clearances for foreign investor applications, highly automated processes for enrolment with the Employees State Insurance Corporation and the Employees Provident Fund Organisation, state adoption of best practices in granting clearances, reducing the number of documents required for exports, and ensuring compliance through peer evaluation, self-certification, and so on.
- The government intends to improve physical infrastructure mainly through PPP investment. Investment in ports and airports has increased. In addition, dedicated freight lines are being created.
- The government has announced intentions to build five industrial corridors. They have begun. These corridors run the length and breadth of the country, with a strategic emphasis on inclusive development that would supplement industrialization and urbanization in a planned manner. The corridors are as follows:
- Chennai-Bengaluru Industrial Corridor (CBIC)
- Delhi-Mumbai Industrial Corridor (DMIC)
- Bengaluru-Mumbai Economic Corridor (BMEC)
- Amritsar-Kolkata Industrial Corridor (AKIC)
- Vizag-Chennai Industrial Corridor (VCIC)
Make in India – Schemes
Several initiatives have been undertaken to assist the Make in India initiative. These plans are described more below:
- This initiative intends to train 10 million people in diverse sectors in India each year. To make ‘Make in India’ a reality, the vast human resource must be upskilled. This is significant because India’s formally skilled workforce accounts for barely 2% of the population
- The primary goal behind this initiative is to create an ecosystem that promotes the growth of startups while also driving long-term economic growth and producing large-scale employment
- The goal is to make India a knowledge-based and digitally enabled economy
- This is a quest to make India cleaner and to promote basic sanitation and hygiene
- The purpose of this strategy is to enhance ports and promote port-led growth in the country
- The ISA is an alliance of 121 countries, most of which are sunshine countries that lie entirely or partially between the Tropics of Cancer and Capricorn. This is India’s initiative to promote solar technology research and development and formulate policies in this area
- AGNII, or Accelerating Growth of New India’s Innovation, was established to propel the country’s innovation ecosystem by linking people and supporting the commercialization of innovations
Make in India – Progress
The Make in India initiative has achieved various milestones. Some of the most notable are as follows:
- Implementing the Goods and Services Tax (GST) has simplified the taxation structure for businesses. The GST has given the Make in India campaign a boost.
- Digitization has gained traction in the country. Taxation, company formation, and various other activities have been made available online, streamlining the overall process and increasing efficiency. This has improved India’s position in the EoDB index.
- The new insolvency code, known as the Insolvency and Bankruptcy Code 2016, consolidated all insolvency laws and rules into a single piece of legislation. This has brought India’s bankruptcy code up to par with global standards
- As of May 2019, 356 million new bank accounts had been opened due to financial inclusion programs such as the PMJDY
- The liberalization of FDI has aided India’s EoDB index. Increased FDI inflows will generate more jobs, income, and investment
- Infrastructure and connectivity have garnered significant attention due to plans like Bharatmala and Sagarmala and several railway infrastructure development schemes
- BharatNet is a telecom infrastructure provider established by the government of India to improve digital networks in rural areas of the country. This is maybe the most significant rural broadband project in the world
- India is ranked fourth in the world for its ability to harness wind power and sixth in the world for its ability to harness solar electricity. India ranks fifth in the world in terms of installed renewable energy capacity
Make in India – Challenges, Criticisms & Concerns
Despite the campaign’s success in some circles, there have been some complaints. There are other hurdles that the country must overcome to meet the ambitious goals set by the establishment. Some of the complaints are listed below:
- India has over 60% cultivable land. The emphasis on the industry is thought to have a negative impact on agriculture. It has the potential to destabilize fertile land permanently
- It is also claimed that fast industrialization (even with the emphasis on “becoming green”) might contribute to natural resource depletion
- Local farmers and small entrepreneurs may be unable to compete with foreign players due to welcoming large-scale FDI
- The campaign’s emphasis on manufacturing may result in pollution and adverse environmental effects
- There are significant gaps in the country’s physical infrastructure facilities. For the campaign to be effective, it is vital to improve the country’s infrastructure while simultaneously addressing issues such as corruption at the grassroots level
- India may learn from China, which increased its share of global manufacturing from 2.6 percent in the 1990s to 24.9 percent in 2013. China rapidly expanded its physical infrastructures, such as railways, roads, power, and airports
