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Make in INDIA

9 March 2020   

The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. Devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation. By 2013, the much-hyped emerging markets bubble had burst, and India’s growth rate had fallen to its lowest level in a decade. The promise of the BRICS nations (Brazil, Russia, India, China, and South Africa) had faded, and India was tagged as one of the so-called ‘Fragile Five’. Global investors debated whether the world’s largest democracy was a risk or an opportunity. India’s 1.2 billion citizens questioned whether India was too big to succeed or too big to fail. India was on the brink of severe economic failure, desperately in need of a big push.

PLAN

To start a movement, you need a strategy that inspires, empowers and enables in equal measure. Make in India needed a different kind of campaign: instead of the typical statistics-laden newspaper advertisements, this exercise required messaging that was informative, well-packaged and most importantly, credible. It had to (a) inspire confidence in India’s capabilities amongst potential partners abroad, the Indian business community and citizens at large;(b) provide a framework for a vast amount of technical information on 25 industry sectors; and (c) reach out to a vast local and global audience via social media and constantly keep them updated about opportunities, reforms, etc.
The Department for Promotion of Industry and Internal Trade (DPIIT) worked with a group of highly specialized agencies to build brand new infrastructure, including a dedicated help desk and a mobile-first website that packed a wide array of information into a simple and sleek menu. Designed primarily for mobile screens, the site’s architecture ensured that exhaustive levels of detail are neatly tucked away so as not to overwhelm the user. 25 sector brochures were also developed - contents included key facts and figures, policies and initiatives and sector-specific contact details, all of which were made available in print and on the website.

PARTNERSHIPS

The Make in India initiative has been built on layers of collaborative effort. DIPP initiated this process by inviting participation from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners. Next, a National Workshop on sector-specific industries in December 2014 brought Secretaries to the Government of India and industry leaders together to debate and formulate an action plan for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP by 2020. This plan was presented to the Prime Minister, Union Ministers, industry associations and industry leaders by the Secretaries to the Union Government and the Chief Secretary, Maharashtra on behalf of state governments.
These exercises resulted in a road map for the single largest manufacturing initiative undertaken by a nation in recent history. They also demonstrated the transformational power of public-private partnership, and have become a hallmark of the Make in India initiative. This collaborative model has also been successfully extended to include India’s global partners, as evidenced by the recent in-depth interactions between India and the United States of America.

PROGRESS

In a short space of time, the obsolete and obstructive frameworks of the past have been dismantled and replaced with a transparent and user-friendly system. This is helping drive investment, fostering innovation, developing skills, protecting Intellectual Property (IP) and building best-in-class manufacturing infrastructure. The most striking indicator of progress is the unprecedented opening of key sectors – including railways, defense, insurance, and medical devices – to substantially higher levels of Foreign Direct Investment.
The ministry has engaged with the World Bank Group to identify areas of improvement in line with the World Bank’s ‘doing business’ methodology. Several workshops with Ministries and State governments have been conducted by the Department for Promotion of Industry & Internal Trade (DPIIT) and World Bank for Business Reforms Action Plan.
An Investor Facilitation Cell (IFC) dedicated to the Make in India campaign was formed in September 2014 with an objective to assist investors in seeking regulatory approvals, hand-holding services through the pre-investment phase, execution and after-care support.
The Indian embassies and consulates proactively disseminate information on the potential for investment in the identified sectors. DPIIT has set up a special management team to facilitate and fast track investment proposals from Japan. The team known as ‘Japan Plus’ was operationalized in October 2014. Similarly, 'Korea Plus', launched in June 2016, facilitates fast track investment proposals from South Korea and offers holistic support to Korean companies wishing to enter the Indian market. Various sectors have been opened up for FDI like defense manufacturing, railways, space, single-brand retail, etc. Also, for ease of doing business, the regulatory policies have been relaxed to facilitate more investments.
Across various regions of the country; six industrial corridors are being developed. Industrial Cities will also come up along these corridors.
Today, India’s credibility is stronger than ever. There is visible momentum, energy, and optimism. Make in India is opening investment doors. Multiple enterprises are adopting their mantra. The world’s largest democracy is well on its way to becoming the world’s most powerful economy.


VISION

Manufacturing currently contributes just over 15% to the national GDP. The aim of this campaign is to grow this to a 25% contribution as seen with other developing nations of Asia. In the process, the government expects to generate jobs, attract much foreign direct investment, and transform India into a manufacturing hub preferred around the globe. The logo for the Make In India campaign is an elegant lion, inspired by the Ashoka Chakra and designed to represent India's success in all spheres. The campaign was dedicated by the Prime Minister to the eminent patriot, philosopher and political personality, Pandit Deen Dayal Upadhyaya who had been born on the same date in 1916.


SECTORS IN FOCUS

For the Make in India campaign, the government of India has identified 25 priority sectors that shall be promoted adequately. These are the sectors where the likelihood of FDI (foreign direct investment) is the highest and investment shall be promoted by the government of India. On the campaign launch, the Prime Minister Mr. Modi said that the development of these sectors would ensure that the world shall readily come to Asia, particularly to India where the availability of both democratic conditions and manufacturing superiority made it the best destinations, especially when combined with the effective governance intended by his administration. Priority areas covered are:


1. Automobiles

2. Food Processing

3. Renewable Energy

4. Automobile Components

5. IT and BPM

6. Roads and highways

7. Aviation

8. Leather

9. Space

10. Biotechnology

11. Media and Entertainment

12. Textiles and garments

13. Chemicals

14. Mining

15. Thermal Power

16. Construction

17. Oil and Gas

18. Tourism and Hospitality

19. Defense manufacturing

20. Pharmaceuticals

21. Wellness

22. Electrical Machinery

23. Ports

24. Electronic Systems

25. Railways

Benefits of Make in India

1. Make in India initiative helps in creating jobs for the ever-increasing population of India.2. Conversion of India into a manufacturing hub of various commercial products.3. Development of the areas and the neighboring locations where the industries would be set up.4. The program will boost the GDP of the Indian economy as foreign investments will lead to a humongous flow of income.5. The FDI under this initiative would strengthen the rupee against the domination of the American dollar.6. As countries from all over the world will bring along the latest technology, India will have an opportunity to make use of it as it lacks in various test mechanization.7. Setting up of industries under this initiative will help in the development of rural areas.


Disadvantages of Make in India

1. Under Make in India campaign, all the focus lies on the manufacturing sector. So this causes a negative impact on the agriculture sector of India.

2. As setting up manufacturing industries requires natural resources like land, water, etc on a large scale. So, there is a possibility of depletion of these natural resources which can threaten the survival of such a large population of India.

3. The entry of foreign countries into the manufacturing sector in India has caused a threat to the existing small local entrepreneurs and might force them out of business.

4. A wide disruption in the agricultural sector due to the utilization of land primarily for setting of manufacturing industries.

5. Tough competition leads to lowering of returns on FDI and results in outflow of capital from the economy.

6. Unemployment will be created if the foreign investors back out of the initiative.

Why Companies were not manufacturing in India

Make in India campaign is at loggerheads with the Make in China ideal that has gained momentum over the past decade. China is a major rival to India when it comes to outsourcing, manufacturing, and services business. India's ailing infrastructure scenario and defunct logistics facilities make it difficult for the country to achieve an elite status as a manufacturing hub. The bureaucratic approach of former governments, lack of robust transport networks, and widespread corruption makes it difficult for manufacturers to achieve timely and adequate production. The Modi government has vowed to remove these hurdles and make the nation an ideal destination for investors to set up industries.

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