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In the recent few years India has witnessed a remarkable structural
transformation and is one of the fastest growing economies in the
world. India is focused to embark upon an 8-10% growth trajectory over
the next decade. Several new initiatives have been launched by the
Government in the last two years, such as ‘Make in India’, ‘Start-up
India’, ‘Skill India’, ‘Digital India etc. with an aim to make India number
one destination for global FDI and to improve ‘Ease of Doing Business’
‘Make in India’ initiative was launched on September 25, 2014 by the
Government of India with the aim to promote manufacturing in India.
The program includes major new initiatives designed to facilitate
investment, foster innovation, protect intellectual property, and build
best-in-class manufacturing infrastructure. Make in India aims at 25
economy driving sectors including Biotechnology for GDP growth of the
DBT has entrusted BIRAC with the responsibility of creating a facilitating
ecosystem in the country for promoting the manufacturing capabilities
of the Indian Biotechnology sector. Hence, BIRAC has established a
Make in India Facilitation Cell for disseminating the relevant
information in context to Make in India and attracting investments in
Origin of ‘Make in India’
After India liberalized in 1991, services sector grew contributing
significantly to GDP, economic growth, international trade and
investment. It was estimated that manufacturing sector’s contribution
to GDP stood for 16% where services sector contributed 56.5% to the
According to the Reserve Bank of India (RBI), India’s ITeS/BPO exports
rose 37% in 2012-13. While manufacturing exports continue to perform
well, most of it remains in the skill-intensive sector (automotive,
engineering, etc.). This does nothing for the large number of low-skilled
workers who are either unemployed or labouring away in hazardous,
inhumane conditions beyond the purview of established formal state
The most urgent need was to upgrade India’s physical infrastructure to
encourage domestic and foreign direct investment in the manufacturing
sector. This could absorb the rural labour surplus that is migrating to
the cities by providing employment in labor-intensive, less technology-
intensive manufacturing, regulated by humane labour laws catering to
the contemporary needs of the economy.
For India to achieve its stated goals of reviving its manufacturing sector
and providing jobs to the tens of millions of its unemployed youth, it
was necessary to design policies targeted at low cost mass
manufacturing. Thus ‘Make in India’ campaign was launched on
September 14, 2014 with the key objective to promote rapid growth of
manufacturing sector. This meant not just rapid growth of
manufacturing, but also a lead role for manufacturing in India’s growth
process. It did not call for discouragement or lowering of services or
agricultural growth, it calls for services growth to be pulled by
manufacturing growth and not vice versa.Led by the Department of
Industrial Policy and Promotion, the initiative aims to raise the
contribution of the manufacturing sector to 25% of the Gross Domestic
Product (GDP) by the year 2025 from its current share of 16%. Make in
India has introduced multiple new initiatives, promoting foreign direct
investment, implementing intellectual property rights and developing
the manufacturing sector.
Narendra Modi while introducing the programme in his maiden
Independence Day speech, said, “I want to tell the people of the whole
world. Come, make in India. Come and manufacture in India. Go and sell
in any country of the world, but manufacture here. We have skill, talent,
discipline and the desire to do something. We want to give the world an
opportunity that come make in India.”
He initiative targeted 25 sectors of the economy which range from
automobile to Information Technology (IT) to Business Process
Management (BPM). The government has introduced several reforms to
create possibilities for getting Foreign Direct Investment (FDI) and foster
business partnerships. These reforms also aligned with the parameters
of World Bank’s ‘Ease of Doing Business’ and aim to improve India’s
ranking on it. The government also intended to develop industrial
corridors and build smart cities with state-of-the-art technology and
high-speed communication. Innovation and research activities were
supported by a fast-paced registration system and improved
infrastructure for Intellectual Property Rights (IPR) registrations.
The Make in India 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 a 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.
Make in India Campaign
Ultimate objective to make India a renowned manufacturing hub for
key sectors. Companies across the globe would be invited to make
investment and set up factories and expand their facilities in India and
use India’s highly talented and skilled manpower to create world class
zero defect products. Mission is to manufacture in India and sell the
How this would be achieved
1. Skill development programs would be launched especially for
people from rural and poor ones from urban cities
2. 25 key sectors have been short listed such as telecommunications,
power, automobile, tourism, pharmaceuticals and others
3. Individuals aged 15-35 years would get high quality training in the
following key areas such as welding, masonries, painting, nursing
to help elder people
4. Skill certifications would be given to make training process, a
standard. Currently manufacturing in India suffers due to low
productivity rigid laws and poor infrastructure resulting in low
quality products getting manufactured.
5. Over 1000 training centres would be opened across India in the
next 2 years
6. For companies setting up factories, “Invest India” unit is being set-
up in the commerce department which would be available 24/7.
The main focus of this department would be to make doing
business in India easy by making all the approval processes
simpler and resolving the issues in getting regulatory clearances
within 48-72 hours so that clearances are fast. To make this
possible, special team would be available to answer all the queries
related to help foreign investors/companies.
7. The e-biz portal would be soon launched which would be real time
and available 24*7
1. This will help in creating job market for over 10 million people in
2. Manufacturing done here would boost India’s GDP, trade and
1. Launch of Make in India campaign will take place on 25th Sep
2. The sales pitch would be made available in capital cities in India
and countries with time zone similar to India.
3. Over 15000 crores would be spent to open the training centres.
4. Translation of prime minister’s speech would be available in
multiple languages German, French, Japanese and Russian.
Top corporate honchos from India and world (US, Canada, Australia,
Europe and many others) would be attending this grand launch. Here is
the small list of companies whose top leaders would be attending:
Vodafone and many more.
Make-in-India is a lion's step. The logo is the silhouette of a lion on
the prowl, made entirely of cogs, symbolising manufacturing,
strength and national pride.
In Indian folklore, the lion denotes the attainment of
enlightenment, besides representing power, courage, pride and
Make in India is an invitation to the world to come make their
fortunes in India, and the attendant promise that the playing field
will be level, both for Indians and foreigners.
The designer of this far-famed logo is a Kerala-born man who had
to drop out of school to make a living as a mechanic and then rose
to be counted among India’s top creative professionals, named V.
Progress under 'Make In India'
Significant achievements have been made under the Make in India
initiative since its launch on 25th September, 2014.
‘Make in India’ initiative was launched on September 25, 2014
with the objective of facilitating investment, fostering innovation,
building best in class manufacturing infrastructure, making it easy
to do business and enhancing skill development. Action Plans for
21 key sectors were identified for specific actions under (i) Policy
Initiatives (ii) Fiscal incentives (iii) Infrastructure Creation (iv)
Ease of Doing Business (v) Innovation and R&D (vi) Skill
Details of achievements under the ‘Make in India’ initiatives in the
focus sectors are as follows :
1. Foreign Direct Investment:
The total Foreign Direct Investment (FDI) inflow was USD 160.79
billion between April 2014 and March 2017 – representing 33% of
the cumulative FDI in India since April 2000. In 2015-16, FDI inflow
crossed the USD 50 billion mark in one fiscal year, for the first time
ever. In 2016-17, FDI inflow stood at a record of USD 60 billion,
highest ever recorded for a fiscal year ever. According to IMF
World Economic Outlook (April 2017) and UN World Economic
Situation Prospects 2017, India is the fastest growing major
economy in the world, and is projected to remain so in 2017 and
2018. FDI policy and procedure have been simplified and
liberalized progressively. Key sectors that have been opened up for
FDI include Defence Manufacturing, Food Processing,
Telecommunications, Agriculture, Pharmaceuticals, Civil Aviation,
Space, Private Security Agencies, Railways, Insurance and Pensions
and Medical Devices.
2. Ease of Doing Business:
Steps taken to improve ease of doing business include
simplification and rationalisation of existing rules. As a result of
the measures taken to improve the country’s investment climate,
India jumped a massive 30 places to 100th in World Bank's ease of
doing business rankings as per World Bank Group’s ‘Doing
Business 2018: Reforming to Create Jobs’ report. This is driven by
reforms in the areas of Starting a Business, Construction Permits,
Getting Credit, Protecting Minority Investors, Paying Taxes,
Trading across Borders, Enforcing Contracts, and Resolving
Make in India is a “Be Indian and Made Indian” type of Swadeshi
movement; covering 25 sectors of economy.
List of sectors covered under the “Make in India” is as
2. Auto components
7. Defense manufacturing
8. Electrical machinery
9. Electronic system design and manufacturing
10. Food processing
11. IT and BPM
13. Media and entertainment
15. Oil and gas
19. Renewable energy
20. Roads and highways
23. Thermal power
24. Tourism & Hospitality
Currently manufacturing sector is contributing around 16% in the
Indian GDP but the government of India want to make it 25% by
2022. It is worth to mention here that manufacturing sector is
contributing around 34% share in the Chinese GDP.
Advantages of Make in India
1. Develop Job Opportunity:
One of the main purposes of Make in India crusade is to provide job
opportunities for as many citizens of India as possible. It has targeted
the young generation of the country as its prime beneficiary. The
investments in the targeted sectors, i.e. telecommunications,
pharmaceuticals, tourism etc. will encourage the young entrepreneurs
to come forth with their innovative ideas without worrying about the
source of speculation.
2. Expand GDP:
Due to the manufacturing of products in India, economic growth is
inevitable, which will not only boost the trade sector but also will
increase the GDP of Indian economy as with the setting up of new
factories and various investments being speculated in the Indian
commercial sectors the flow of income will be humongous. Various
sectors such as exportation, architecture, textiles, telecommunications
etc. are likely to flourish inevitably, strengthening the Indian economy
which is already the seventh largest in the world.
3. Fortify the Rupee:
The emergence of the manufacturing industries would automatically
convert India into a hub for the fabrication of various commercial
products; as a result, there would be a grand collection of the FDI,
which, in turn, would strengthen the rupee against the domination of
the American dollar.
4. Increase in Brand Value:
Most of the urban population prefer international brands rather than
putting their faith in Indian retailers. As a result, the small
manufacturing companies suffer an extreme loss in the market.
Due to the Make in India campaign, such small manufacturers will be
provided with a real shot at the business. With, companies investing in
such small time retailers from all around the world, the brand value of
Indian merchandise will increase dramatically.
5. Ease of Business:
India is a nation which ranked 130th on the ease of doing business
scale. But with the open invitation given to the entire world to
manufacture their products in India, the various restrictions opposed
over the entrepreneurs will be lifted and aspiring businessmen from all
over the globe could invest in India with no stress at all.
6. Flow of Capital:
Since the beginning of capitalization, the Indian currency is being spent
on the foreign countries. With the introduction of make in India, the
capital will not only remain in India, but also the foreign currency will be
provided to the nation as well. In a nutshell, India will not spend on
foreign countries, but the foreign countries will spend in India in the
form of investments and wages.
Disadvantages of Make in India
1. Negligence of Agriculture:
The most negative impact of the Make in India campaign will be in the
agriculture sector of India. It is a well-known fact that Indian Territory
has 61% cultivable land. With the introduction of industrial sectors, the
agriculture in India will be neglected somewhat.
One of the biggest problems which are prevailing in India is pollution.
According to statistics, India has a pollution index of 76.50. With the
make in India movement, this pollution level is likely to arise in a couple
of years. Eventually, making the condition in India worse. Hence, Make
in India might be economically but it will have an inverse effect
3. Interest in International Brands:
As stated earlier, the brand value of Indian merchandise will definitely
increase. But the Indian upper class, which can actually afford such
merchandise, is addicted to the foreign label. This will eventually
become a big hurdle for the local entrepreneurs as a great level of
promotion is required to build the confidence of people in the local
4. Manufacturing based Economy:
Indian economy is one of the largest economies in the world. It
constitutes of three sectors i.e. agriculture, industry, and services. Now
the Indian economy majors up from the service sector which contributed
up to 57% of the GDP. But with the introduction of the Make in India
campaign, the economy is likely to rely completely on the
manufacturing and exporting while the import industry will remain
static. This eventually will be a huge loss for the other economic sectors
and would automatically reduce the advancement of Make in India.
5. Disruption of Land:
As stated above, India is very rich in the agriculture sector. About 60%
of the Indian soil is arable. With the emphasis being given to the Make
in India campaign, thousands of companies would come forth to set up
their factories on the land which could be used for cultivation.
Eventually, this set up of manufacturing factories would lead to the
permanent disruption of the agrarian land in the near future.
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