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Make in India
Make in India is an initiative of the Government of India to encourage companies to develop, manufacture and assemble products made in India and to encourage dedicated investment in manufacturing. The policy vision was to create a favorable environment for investment, develop a modern and efficient infrastructure and open up new sectors for foreign capital. The program focuses on 25 economic sectors with the goal of generating employment opportunities and improving skills. Its overarching objective is to turn India into a prominent hub for global design and manufacturing exports.
“Make in India” had three objectives:
- Increase the growth rate of the manufacturing sector to 12-14% annually;
- Creating 100 million additional manufacturing jobs in the economy by 2022;
- To ensure that the contribution of the manufacturing sector to GDP rises to 25% by 2022 .
After its launch, India committed investments worth ₹16.40 lakh crore between September 2014 and February 2016 and ₹1.5 lakh crore . As a result, India has emerged as a top destination globally. For foreign direct investment (FDI) in 2015, the US and China were surpassed, with US$60.1 billion in FDI. As per the current policy, 100% foreign direct investment (FDI) is allowed in all 100 sectors except aerospace industry (74%), defense industry (49%) and India’s media (26%). Japan and India announced a US$12 billion ‘Japan-India Make-in-India Special Financial Facility’ fund for investment.
Aligned with the Make in India initiative, various states have introduced their localized programs, including “Make in Odisha,” the “Tamil Nadu Global Investors Meet,” “Vibrant Gujarat,” and “Happening Haryana”, and “Magnetic Maharashtra”. India received US$60 billion in FDI in FY 2016-17.
The World Bank’s 2019 Ease of Doing Business Report acknowledged that India jumped 23 positions from its top 100 rank in 2017 to rank 63 out of 190 countries. By the end of 2017, India had moved up 42 places in the Ease of Doing Business Index, 32 places in the World Economic Forum’s Global Competitiveness Index and 19 places in the Logistics Performance Index, thanks to recent government initiatives, including Converge, Synergy and other capabilities Bharatmala, Sagarmala, Dedicated Important projects of Government of India like Freight Corridor, Industrial Corridor, UDAN-RCS, Bharat Broadband Network, Digital India.
The growth rate of manufacturing between 2014-15 and 2019-20 shows higher growth with an annual average of 6.9% followed by 11.4% in 2022. The share of manufacturing declines from 16.3% of GDP in 2014-15 to 14.3% in 2020-21 and increases to 17% in 2022.
On January 10, 2023, three capital acquisition proposals worth ₹4,276 crore were cleared for the government’s Make-in-India scheme.
The “Make In India” initiative
Ease of Doing Business
India rose to 63rd out of 190 countries in the World Bank’s 2019 Ease of Doing Business Index, from 130th in 2016. In February 2017, the government engaged the United Nations Development Program (UNDP) and the National Productivity Council to “sensitize the reality. Users and get their views on various reform measures.” As a result, there is now competition among Indian states to improve their current ranking on the Ease of Doing Business Index based on the percentage score of the completion of the 98-point action plan for business reforms under the Make in India initiative. Currently Andhra Pradesh, Uttar Pradesh, Telangana, Madhya Pradesh, Jammu and Kashmir and Chhattisgarh are the top six states in October 2020.
Ongoing global campaign
The campaign was designed by Wieden + Kennedy after relaxing the foreign equity cap, rules and procedures in various sectors, launching a web portal with application and validation of production applications available online and publishing brochures in 25 sectors. The license is extended to three years.
The slogan “Zero Defect Zero Effect” was coined by the Prime Minister of India, Narendra Modi, to guide the Make in India initiative to produce products without any defects with no adverse environment and environmental impact.
“Make in India Week” multi-sectoral industrial event at MMRDA from 13 February 2016 was attended by 2500+ international and 8000+ domestic, foreign government delegations from 68 countries, foreign government delegations and business groups from 72 countries and all Indian states. The event received investment commitments worth over ₹15.2 lakh crore and investment inquiries of ₹1.5 lakh crore, with Maharashtra leading the investment with ₹8 lakh crore. Earlier between September 2014 and November 2015, the government received proposals worth ₹1.20 lakh crore from companies interested in manufacturing electronics in India.
Revision in Public Procurement Order & GFR
On June 15, 2017, the Ministry of Commerce and Industry (India), the nodal ministry amended the Indian Public Procurement Order and General Financial Rules to prioritize Make in India. Subsequently, all the nodal agencies issued their own mandates to enhance the scope of Make in India in procurement related to their product lines.
Sectors covered
The Make in India website also lists 25 focus sectors and provides all relevant details about these sectors and related government schemes including FDI policy, IPR, etc. Major sectors (27 sectors) under this campaign are given below :
Manufacturing Sectors:
- Aerospace and Defence
- Automotive and Auto Components
- Pharmaceuticals and Medical Devices
- Bio-Technology
- Capital Goods
- Textile and Apparels
- Chemicals and Petro chemicals
- Electronics System Design and Manufacturing (ESDM)
- Leather & Footwear
- Food Processing
- Gems and Jewellery
- Shipping
- Railways
- Construction
- New and Renewable Energy
Services Sectors:
- Information Technology & Information Technology enabled Services (IT &ITeS)
- Tourism and Hospitality Services
- Medical Value Travel
- Transport and Logistics Services
- Accounting and Finance Services
- Audio Visual Services
- Legal Services
- Communication Services
- Construction and Related Engineering Services
- Environmental Services
- Financial Services
- Education Services
FAQ
What are the 4 pillars of Make in India?
The 4 pillars of Make in India initiative are New Mindset, New Sectors, New Infrastructure, and New Processes. Hence, the Make in India initiative aims to encourage not only the manufacturing sector but also other sectors.
What are the schemes under Make in India program?
These include Atmanirbhar Bharat Package, introduction of Production Linked Incentive (PLI) Scheme in fourteen (14) sectors, National Infrastructure Pipeline (NIP) and National Monetization Pipeline (NMP), India Industrial Land Bank (IILB), investment opportunities under Industrial Parks. Rating System (IPRS),
What is the benefit of Make in India Programme?
Skill Development: The Make in India movement prioritises skill development programs to enhance the capabilities of the Indian workforce. By imparting industry-specific skills and knowledge, the initiative ensures a competent and adaptable workforce, ready to meet the demands of the manufacturing secto
What is Make in India scheme for UPSC?
Make in India aims to increase Share of manufacturing sector in country’s GDP. To offer job opportunities to a minimum of 100 million individuals in India. To train and capacitate rural and urban communities to promote the concept of inclusive growth.
What are the 25 sectors of Make in India?
Official website: https://www.makeinindia.com/
