this topic creates more awareness among students and other industrialists. It helps to boost the economy.

2.  On August 15, 2014, Prime Minister Narendra Modi,
in his maiden Independence Day speech, appealed to
companies around the world to ‘Come, make in
India’.
 From the ramparts of the Red Fort, Modi’s voice
boomed from the lectern, urging world powers to
‘Come, manufacture in India’.
 “Sell in any country of the world but manufacture
here. We have got skill, talent, discipline, and
determination to do something.

3.  Seeking to make the country a global manufacturing hub, Prime
Minister is all set to launch the ambitious 'Make in India' campaign in
the presence of global and domestic CEOs.
 This will be the Prime Minister's first interaction with the
entrepreneurs and comes close on the heels of the PM's maiden
Independence Day address, when he invited the global business
community to set up manufacturing facilities in India, giving the
slogan 'come, make in India'.
 In a move that is not only expected to stimulate economic activity but
also create jobs in the coming months, the Prime Minister will ask
them to scale up investments.

4.  Addressing a gathering consisting of top global CEOs at the event in
Vigyan Bhawan in the capital, the Prime Minister said “FDI” should
be understood as “First Develop India” along with “Foreign Direct
Investment.” He urged investors not to look at India merely as a
market, but instead see it as an opportunity.
 The Prime Minister said that India is the only country in the world
which offers the unique combination of democracy, demography,
and demand.

5.  In the Vibrant Gujarat Summit the state government,
under CM Modi, used to finalise investment plans on
the spot while the PM's campaign will focus on making
a pitch to the captains of industries Sectors, especially
those which are employment-intensive, will be offered
for investment.
 The Government will give special emphasis on FDI,
manufacturing policy, industrial corridors and
intellectual property rights.

6.  The government feels that in order to create jobs and boost economic
growth there is an urgent need to boost manufacturing sector on a
sustainable basis for long term.

7.  In his maiden Independence Day
Speech Aug 15, Prime Minister
Narendra Modi had sought to reach out
to global investors, asking them to come
and manufacture goods in India, while
also calling for zero-defect products with
zero-effect on environment.
 As part of the plan, foreign
investment caps in construction will be
eased to enable greater participation in
the NDA government’s 100 smart cities
project and affordable housing. FDI
caps in railways and defence production
have already been eased to 100% and
49%, respectively.

8.  "From electrical to electronics, to come make in India. From
chemicals to pharma, come make in India, from auto to value-
addition, come make in India. Paper or plastic, come make in
India. Satellites or submarines, come make in India," he had
said.
 To facilitate Make in India, a dedicated ‘investor facilitation
cell’ has been set up with instructions to respond to foreign
investment proposals within 24 hours.
 India's track record in attracting FDI in an international
context is not very inspiring compared to FDI into countries like
Mexico and China.

10.  Growth rate of employment in manufacturing,1961 to2004-05
(Percent Per Annum)
Period Organised
Manufacturing
Unorganised
Manufacturing
Total
Manufacturing
1961 to 1977-78 2.4 3.3 3.1
1977-78 to 1987-88 0.9 3.6 3.1
1987-88 to 1993-94 2.4 1.3 1.5
1993-94 to 1999-00 0.9 2.1 1.9
1999-00 to 2004-05 0.4 5.6 4.8

11.  The trade orientation of Indian manufacturing has
increased substantially in the post reform period
reflecting primarily the effects of policy changes. In
the 1990s, manufactured exports grew faster than
imports, resulting in a balance of trade surplus in
manufactures. Later, imports grew relatively faster,
and the gap was narrowed. Trade in manufactured
products (exports plus imports) as a ratio to value of
gross output of organized Indian manufacturing
increased from 19 per cent in 1990-91 to 62 percent in
2006-07. Clearly, the degree of trade openness has
increased substantially in the post reform period.

12.  According to the 2012-13 Economic Survey, even as India’s share
of employment in industry is at par with that of other Asian
economies, its share of value-added in industry has recently fallen.
The survey said that basically means India workers have low
productivity. In countries such as China, Indonesia and South
Korea, the increase in the share of value-added products has
commensurate with that of employment.
 India has some of the most comprehensive labour laws in the entire
world as well as the largest fraction of working population without a
social safety net.
 Indian manufacturing has also suffered from the absence of quality
infrastructure. Creating infrastructure has its own set of constraints,
the biggest one being land acquisition.

13.  Industries more dependent on infrastructure or
external finance have shown poorer growth in the
past.
 The gain in the output of the manufacturing sector
in these industries has been smaller in states with
poorer infrastructure.
To be cont...

16. Role of excise and custom duty
However, with a
clear thrust on
jumpstart
manufacturing,
customs and
excise duties have
been rationalised
for various
products, which
are likely to
benefit key
sectors such as
steel, solar and
wind power, food
processing,
electronics,
chemical and
petrochemical.
To encourage
in-country
production of
electronics,
custom duty
rates have been
increased on
specified
telecommunicat
ion products
and education
cess imposed on
all imported
electronic
products.
To increase use
of renewable
sources such as
solar power and
wind power, duty
concessions have
been extended to
equipment/
inputs required
for setting up
solar energy
projects and
inputs for
manufacture of
wind energy
equipment.
Consumer product
segment should
benefit from the
excise duty rate
reduction on
specified food
processing and
packaging
machinery as well
as for the footwear
industry. However,
to mobilise
resources, excise
duty has been
increased on
cigarettes, pan
masala and aerated
waters as well as
clean energy cess.
In order to attract
investments from
SME’s in
manufacturing
sector, the
investment ceiling
for claiming
investment
allowance has
been reduced
from Rs 100
crores to Rs 25
crores. This will
result into
expansion of
manufacturing
sector.

17.  The government will select domestic companies having leadership in
innovation and new technology. The idea is to turn these into global
champions and promote green and advanced manufacturing and help
these companies to integrate into global value chain.
 The once booming services sector has slowed, but it is the
manufacturing sector that has performed especially poorly by
recording an expansion of barely 1.1 per cent growth in 2012-13,
followed by a contraction of 0.7 per cent in 2013-14.
 India will need a dramatic improvement in transport connectivity
together with addressing the skewed transport mode mix, currently
biased towards roads.
 Road construction will need to rise 5-fold to 30Kms/day from the
current 6 kms/day. The Indian Railways will also need to build the
capacity to evacuate more than 3x the current traffic of both
passengers as well as freight by building high speed dedicated freight
corridors and faster trains.

18. 'Make in India' or 'Invest India' campaign will be the first reference point
to guide foreign investors. It will provide help on regulatory and policy
issues, and assist in obtaining regulatory clearances.
The government has identified 25 sectors where India can become world
leader. These include automobiles, chemicals, IT, pharma, textiles, ports,
aviation, leather, Tourism and hospitality, wellness, and railways, among
others.
India's track record in attracting FDI in an international context is not
very inspiring compared to FDI into countries like Mexico and China.
Each 1 per cent increase in FDI adds about 0.4 per cent to a country's
GDP growth. So, to boost GDP growth by about 2 per cent, India will
need about 5 per cent increase in FDI.

19.  Improve business environment: An encouraging fiscal
framework would go a long way in making the
campaign a success. If you want investors to come
to India for manufacturing, they need land, power,
roads, airports. Not only does manufacturing require
finance, but also skilled manpower, hassle-free
labour laws and infrastructure. Can the government
make an assurance on that?
 Encourage innovation: Create an environment that
encourages innovation and reward such initiatives.
 Attract greater capital: This can be done through
further liberalisation of foreign direct investment in
key sectors such as energy, urban and industrial
infrastructure, skill development among a host of
others, says FICCI.

20.  Create a single window system for clearances: Make
the process of making queries, filling up forms,
uploading proofs user-friendly like it is done for
application of passports, for instance. Create a self-
declaration template where users can upload all
documents and the government can approve it.
 Have a dispute resolving mechanism: If there are
issues between user and government and vice
versa, this arm should be the single point of
reference that can solve the issues—a compliance
authority.
 Ensure supply of skilled manpower: While this
government initiative is laudable, it must ensure that
it encourages the setting up of institutions around
manufacturing hubs so that they will cater to them
(hubs) with a manpower suited for its needs. Ensure
inter-linkages with industries and institutions.

21.  Advertise for manufacturers: Just as advertisements call for
youth to join the armed forces, the government must
talk, and talk a lot about manufacturing.
 Motivate start-ups entrepreneurs: Start-ups entrepreneurs
and small scale manufacturers fight shy of working with
the government. The common reasons cited range from
the mundane—difficulties of getting appointment with a
government official to the difficult ones like the time-
consuming processes and payments issues.
 Inculcate domestic pride: Create a scenario that Indian
investors will feel that their efforts would be fruitful and
the products they manufacture are accorded the value
that Indians give an imported product. he gets more
respect abroad for his products than in the domestic
market.

22. 1.) Boost manufacturing: Everyone knows that manufacturing is a very
small portion of the Indian economy which leads to very low
employment as manufacturing has the potential to create more jobs
than any other sector. Manufacturing creates 1000's of blue collar jobs
in the form of skilled technicians who might not need college degrees
to do some of the skilled technical and industrial work.
2.) Diversification: It gives our economy a diverse set of advantages so
that moves in certain markets do not affect us very badly.
3.) Satisfies the coming demographic dividend: Some analysts have
estimated that 240 million people are going to join the workforce in
the next 10 years. This requires huge amount of job creation and the
services sector cannot do the heavy lifting alone. Many countries like
East Asia and China in history have advanced quickly due to
demographic dividend i.e. high working to non-working population.
For India to take advantage of this, a surge in manufacturing is
required.

24.  one major long term issue that India would have to deal
with would be automation.
 Automated assembly lines consisting of robots assisted by
computers are already known to have a higher efficiency
and accuracy than any amount of skilled labour. Currently,
automation has a high initial cost and that prevents a lot
of companies from setting up automated industrial
units. As soon as large scale adoption of these kinds of
assembly lines becomes even moderately feasible, the
whole concept of "Make-in-India-because-there-is-a-
large-amount-of-unskilled-workforce-available" will
become irrelevant.
 India ranks low on the “ease of doing business index” .
Labour laws in the country are still not conducive to the
Make in India campaign. This is one of the universally
noted disadvantage of manufacturing and investing in
India.