1. 1
INTRODUCTION
Indian Prime Minister Mr.Narendra Damodardas Modi launched the Make in India initiative on
September 25, 2014, with the primary goal of making India a global manufacturing hub, by
encouraging both multinational as well as domestic companies to manufacture their products
within the country.
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 16%. Make in India has introduced multiple new initiatives,
promoting foreign direct investment, implementing intellectual property rights and developing
the manufacturing sector.
It targets 25 sectors of the economy which range from automobile to Information Technology
(IT) and Business Process Management (BPM).It also seeks to facilitate job creation, foster
innovation, enhance skill development and protect intellectual property.
The logo of ‘Make in India’ – a lion made of gear wheels – itself reflects the integral role of
manufacturing in government’s vision and national development.
The initiative is built on four pillars which are as follows;
1. New Processes: The government is introducing several reforms to create possibilities for
getting Foreign Direct Investment (FDI) and foster business partnerships. This reform is also
aligned with parameters of World Bank's 'Ease of Doing Business' index to improve India's
ranking on it.
2. New Infrastructure: Infrastructure is integral to the growth of any industry. The government
intends to develop industrial corridors and build smart cities with state-of-the-art technology and
high-speed communication. Along with the development of infrastructure, the training for the
skilled workforce for the sectors is also being addressed.
3. New Sectors: ‘Make in India’ has identified 25 sectors to promote with the detailed
information being shared through an interactive web-portal. The Government has allowed 100%
FDI in Railway and removed restrictions in Construction. It has also recently increased the cap
of FDI to 100% in Defense and Pharmaceutical.
4. New Mindset: Government in India has always been seen as a regulator and not a facilitator.
This initiative intends to change this by bringing a paradigm shift in the way Government
interacts with various industries. It will focus on acting as a partner in the economic development
of the country alongside the corporate sector.
2. 2
REASSONS FOR LAUNCHING MAKE IN INDIA
In 2013 India went to its lowest level of growth rate in a decade, where the much hyped
emerging markets failed miserably. The promise of BRICS Nations (Brazil, Russia, India, China,
and South Africa) had faded and India was tagged as one of the so-called ‘fragile five’.
India was in the brink of severe economic failure and 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.
So to save the country from further failure and as a backdrop of this crisis Mr Narendra Modi
launched the movement Make in India at the right time for the betterment of the country and the
people.
It was a powerful galvanising call to action to India’s citizens and business leaders and an
invitation to potential partners and investors around the world.
Make in India represents the complete change in the government’s mindset which is “minimum
government and maximum governance’’.
3. 3
VISIONS
Manufacturing currently contributes just over 16% to the national GDP. The aim of this
campaign is to a 25% contribution as seen with other developing nations of Asia. In the process,
the government expects to generate jobs, attract foreign direct investment, and transforms
India into manufacturing hub preferred around the globe.
The logo for the make in India campaign is an elegant lion made with gear wheels, 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 Upadyaya who has been born in the same date in 1916
Mission ‘’Manufacture inIndia and sell the products worldwide’’.
WHY MAKE IN INDIA
The firstand most importantconditioninordertomake inindiaisto have a low inflationregime
where policiesare predictableandconsistent.
Highinflationreducedtoingredientsof successfulmake inindiacampaign.A) capital accumulation
and b)the rate of change inproductivity.
Beyondinflation,make inindiainvestorswilllookforpolicy,stabilitywithrespecttotrade,duties
i.e bothimportand exporttaxation
WHY COMPANIES WERENOTMANUFACTURING 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 the
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.
4. 4
THERE ARE FOUR POLICIESOF MAKE IN INDIA
1. National Manufacturing Policy
2. National Intellectual Property Rights (IPR) Policy
3. Foreign Direct Investment Policy
4. New Initiatives
NATIONAL MANUFACTURINGPOLICY
This policy focuses on all those areas that are related to the regulation, skill
development, infrastructure, technology, exit mechanism, availability of finance, and
other factors that are helpful in the growth of manufacturing sector of the country.
NATIONAL INTELLECTUAL PROPERTY RIGHTS (IPR)
POLICY
This policy is the first ever single policy that covers every sort of intellectual property in
one framework. This policy focuses on creating, facilitating, promoting, and
commercializing Intellectual Property assets in India.
FOREIGN DIRECT INVESTMENT POLICY
The Foreign direct investment policy is nothing new, but there have been some changes
made by the current government of the country. This policy is the supreme source of
foreign investment that helps the economy of India a lot.
NEW INITIATIVES
The new initiatives by the government of India are designed to facilitate investment,
protect intellectual property, foster innovation.
5. 5
THE SECTORS
AUTOMOBILES
AUTOMOBILE COMPONENTS
AVIATION
BIOTECHNOLOGY
CHEMICAL
CONSTRUCTION
DEFENCE
MANUFACTURING
ELECTRICAL MACHINERY
ELECTRONIC SYSTEMS
FOOD PROCESSING
IT
BPN
LEATHER
MEDIA AND ENTERTAINMENT
MINING
OIL AND GAS
PHARMACEUTICALS
PORTS
RAILWAYS
RENEWABLE ENERGY
ROADS AND HIGHWAYS
SPACE
TEXTILE GARMENTS
THERMAL POWER
WELLNESS
TOURISM AND HOSPITALITY
6. 6
ADVANTAGES AND LIMITATIONS
ADVANTAGES
DEVELOP JOB OPPORTUNITIES; encouraging young entrepreneurs to come forward with
their innovative ideas.
EXPAND GDP; strengthening Indian economy, inflow of FDI, ultimately increasing GDP.
FORTIFY THE RUPEE; emergence of manufacturing industries where India will become
the hub for various commercial products leading to high inflow of FDI, which will
gradually strengthen the rupee against the domination of American dollar.
INCREASE IN BRAND VALUE; since most of urban population prefer international brands,
the companies investing in such small retailers will increase the brand value of Indian
merchandise dramatically.
UP GRADATION OF TECHNOLOGY; there will be high inflow of latest technologies along
with the skilled personnel.
EASE OF BUSINESS; India’s currently ranked at 130th on the ease of doing business scale.
With the open invitation to the foreign investors, the various restrictions opposed over
the entrepreneurs will be lifted, thus the ease of doing business will improve.
AVAILABILITY OF YOUNG MINDS; the younger generations will be encouraged to stay in
their own country and use their innovative ideas for setting the industrial sector to new
heights.
DEVELOPMENT OF RURAL AREAS; with the factories being set up in certain areas the
localities will be highly benefited and their living standards will improve leading to rural
developments.
INCREASE IN CAPITAL; foreign countries spending in India in the form of investment and
wages will increase the capital of the company drastically.
7. 7
Limitations
NEGLIGENCE OF AGRICULTURE; since India has 61% of cultivable land, with increase in
industrial sectors, the agriculture which is the largest sector in India will be neglected.
DEPLETION OF NATURAL RESOURCES; when large factories are being set up there will be
high consumption of natural resources like land, water etc on large scale. Thus India
might be left with zero opportunity to replenish such natural resources and threatening
the survival of such a large population in the near future.
LOSS OF SMALL ENTREPRENEURS; the large foreign entrepreneurs will dominate the
market shares of small local entrepreneurs and force them out of the business.
DISRUPTION OF LAND; since India have more than 60% arable land which can be used
for cultivation, thousands of companies setting up in the near future will land up
permanently disrupting the agrarian land of India.
MANUFACTURING BASED ECONOMY; since the introduction of this project the country
focuses mainly in manufacturing and exporting while other sectors like import industries
remain static.
NEGLECTING LOCAL BRANDS; the interest of people will go to the foreign labels limiting
local people’s business expansion.
POLLUTION; India’s already facing pollution problem which was calculated 76.50 and
with this project it will become worse. Although this movement is good economically, it
will have inverse effect ecologically.
BAD RELATIONS WITH CHINA; Indo China relation is already a problematic cause but
with the upcoming of this project India stands as one of the most promising rivals of
China, damaging its long term feud with China.
8. 8
NOW WHY MAKE IN INDIA FAILED . STILL IT IS A GREAT INITIATIVE BY
MR MODI.
1. Indian youths are not creative then Chinese people. China produces every thing for very
big industry established their plants in China which is export hub so they do not need to
shift their plant to India which requires lots of fund to set up their plants here. Intel
which is semi conductor making company promise India to set up their plant in India in
2015. But they do not do it they give reason for that, they are producing more then their
sales in china manufacturing plant.
2. NO major industry developed by Indian themselves due to which getting spare part for
any things is difficult task here, that's why many companies have to set up their plants
from zero here which need lots of investment.
3. India do not have basic manufacturing capabilities or infrastructure , even connectivity
between states are so poor like fast train and bullets train technology are absent. These
are absent because Indians select mobile to pen. Software to hardware. Bullet train to
fighter jet themselves at low cost with good quality but India highly depends on FDI
from foreign .
4. India’s states are not connected with each other, there is a lack of fast transportation
system.
5. India never became export hub like China , due to lack in political will, yes Mr Modi is
working hard but state government performance and how many more years Mr Modi
remains in power is uncertain.
6. Many Indian now says that , Indian economy is growing with 7 % and China’s economy
is 6% but they forget that 6% GDP GROWTH of China is equal to 33% of Indian GDP
GROWTH , due to their large total economy.
7. Nationalism, India as a country is divided that why uneven development is going on,
some state are doing well but many are still messed in other thing.
8. Lack of creativity in Indian youth. Although there are many entrepreneurs coming up,
they are working in small business not in manufacturing sectors.
THE SOLUTION
1. Many time Indian and foreign establish institutions said this that India have lots of degree
holder but degree holder do not have skill. I think just like China and Japan, India
government need to give simple skill knowledge like - how to make mobile phone and
electronic device to their 12 passed students. Classes should be started, to teach basic
manufacturing practice to uneducated people or even to educated ones.Why Indian
government is desperate about MBA study? Because Teaching MBA is very simple and
cheap process to citizens . IF you are not making any things then why are you creating
sales man??
2. Create tax free zone.
3. Give focus on our own small scale industries.
4. Start copying China’s way of doing things especially for production. Thier way of doing
things.
9. 9
5. Increases research and development at colleges level……. Close all extra college which
only giving graduation degree to student . this will create a citizen which have any useful
and technical knowledge.
OUR VIEW ON MAKE IN INDIA
I’d argue that Make In India has not failed, and in fact, has neither overly helped, nor hurt the
status of the country. What MII has done is bring light to many manufacturing opportunities that
do exist in India.
It is widely assumed based on analyses of a decade or more ago, that the manufacturing industry
in India has stagnated and has remained more or less the same for the last thirty or so years -
perhaps this comes from the notion of India as an economy that took a services route to
development, skipping the manufacturing capabilities entirely.
I would argue that is only partially true, given that world class products do get produced in India,
for export in many firms.
Some examples are - Hyundai, whose largest car manufacturing plant is just outside of Chennai
in India, Volkswagen, Renault-Nissan and Suzuki, who produce a large number of vehicles for
foreign and local markets alike in India, and of course, Ford, Honda, Toyota and other firms that
made early entries into India after the license permit Raj ended in the early 1990s.
I’m not even broaching the topic of manufacturing beyond automotive - in which Indian
companies are legitimately behemoths in themselves, whether you take the recently successful
Patanjali, HUL, or foreign entrants like P&G that have made India their home too.
Now, Make In India is not a new story, or something to be taken in isolation, since India,
because of its lower costs has been an attractive destination for manufacturers for decades. I
anticipate that this will be the case for a few more decades, and India’s prowess in manufacturing
and quality of manufactured products will continue to improve - just as Make In India is not a
revolution that will manifest in a few years’ time, the association of quality with the “Made in
India” brand is not something we will see happening very soon. This is a long game, just as
Japan’s or Korea’s ascent to high tech and high quality manufacturing took time - decades, in
fact. By the same yardstick, India is definitely making progress as a manufacturing base and I
expect that things will only get better from this point on.
I don’t think Make In India failed , but i certainly believe that it didn't get the right momentum as
it supposed to be at.But for this slow progress of Make In India we can't blame the Government
just because Make In India itself is a unique kind of initiative taken by the Goverment to boost
the country's industrial growth . As to start a new work culture in industrial arena first its need to
be based properly on ground in which the future industrial mechanism will stand.
10. 10
CONCLUSION
In the end, when you talk about all the impacts that the Make in India has on the
economy, the only thing that the citizens are concerned about is the country’s GDP.
After all, that is the only thing that defines the accurate situation of the country. The
better the GDP, the more developed will be the nation. After all GDP is for the
betterment of citizens and the country.
And, in this case, the campaign of Mr. Narendra Modi is concentrating more on the
manufacture, so it is natural that it will have a better impact on the GDP. Currently, the
GDP is $1.877 trillion (6%), and it is increasing at the annual rate of 5%. And, the
intentions are to make India stand at the 3rdposition by 2020 in terms of Gross
Domestic Product.
