Impact of ‘Make in India’

The ‘Make in India’ campaign was an initiative taken by the government of India, the main purpose of this initiative was to make India a global manufacturing hub. On September 25th, 2014, this campaign was launched by the Prime Minister of India, Mr. Narendra Modi. 

The impact of the ‘Make in India’ campaign is huge, the economy of India definitely experienced its effects, but it also left a huge imprint internationally.

Objectives of ‘Make in India’ 

• Make India a global manufacturing hub. This will result in shifting resources from the tertiary sector to the secondary sector in India. In the year 2013-14, the growth rate of the manufacturing sector witnessed a decline of 0.2%.

• The manufacturing sector in India contributes to almost 15% of the total GDP. The government wishes to raise it to 25% in the later years with ‘Make in India’ aid.

• ‘Make in India’ was also an invitation to foreign businesses and investors to invest in India and manufacture their products in India to increase trade between the countries. 

• This campaign targets 25 sectors of the economy: Automobiles; Automobile components; Aviation; Biotechnology; Chemical; Construction; Defence Manufacturing; Electrical Machinery; Electronics; Pharmaceuticals; Ports; Systems; Food Processing; IT and BPM; Leather; Media and entertainment; Railways; Renewable energy; Roads and Highways; Space; Textile Garments; Thermal Power; Tourism and hospitality; Wellness; Mining; Oil and Gas. 

• One of the benefits of the ‘Make in India’ campaign will be the creation of jobs, as demand for employees in manufacturing firms will increase.

• A few of the other goals of the ‘Make in India’ campaign were to improve the country’s skill developments and protect India’s intellectual properties, and foster innovation, which proved to be one of the challenges of ‘Make in India.’ 

The impact of the ‘Make in India’ campaign 

• One of the ‘Make in India’ campaign benefits is that it will create jobs in the country, as the demand for employees will rise if manufacturing firms increase.
• A decrease in the unemployment rate will affect the government, as lesser unemployment benefits will be given out than earlier. 
• As employment increases, the government will also receive tax on the salaries of the people who earn. 
• The (GDP)Gross Domestic Product of India increased by 7.2% in 2017-18.
• The standard of living will eventually increase for the lower and middle-class Indians due to the rising manufacturing ventures, which will be a source of income for many. 
• The market size of India has increased along with productivity and has encouraged foreigners and Indians to invest in secondary sector businesses.
• Encouraging entrepreneurs, this campaign has attracted business owners to make their products not from imported raw materials but rather with raw materials from India itself; this was also one of the benefits of ‘Make in India.’

The challenges of ‘Make in India’ 

• Bureaucracy is one of the biggest challenges for foreign investors when investing in India. Too many rules, regulations, and laws need complicated administrative procedures to overcome, which can be a huge hassle. 
• India’s rank in the ease of doing business is very low, meaning it is very hard to do business in India, which is one of the many concerns of investors.
• The amount of corruption in India is no less, so the investors will be discouraged naturally, thinking they will be robbed, which can be the truth because they will not be present on-site, and anything can happen. 
• Infrastructure is also not that high class in India. This means transportation and, to some extent, even manufacturing will be affected, which is why foreign investors hesitate in investing in India.
• Even though the government is inviting investors to invest in India and its secondary sector, the government is overlooking the fact that the labour force of India is not educated and has very few skills and abilities to run several tasks on their own. 
• Although the PM is trying to remove these differences, the results cannot be witnessed within a fortnight. 
• Many Indians and Indian companies who disagree with the PM’s decision still manufacture their goods in foreign countries themselves. They do not invest in the ‘Make in India’; Instead, they spend extra money to get imported products manufactured out of the country. 

Conclusion

The ‘Make in India’ campaign was an initiative taken by the government of India, the main purpose of this initiative was to make India a global manufacturing hub. The impact of the ‘Make in India’ campaign is huge, it not only affected domestically, but its after-effects also crossed international borders. Another impact of the ‘Make in India’ campaign was that it created jobs for Indians in the manufacturing sector that improved the GDP of India and the employee’s standards of living. Several of the challenges of the ‘Make in India’ campaign were overcome but still, some are in progress and on the way to being eradicated.