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Make in india
1. MAKE IN INDIA
A GREAT IDEA
Make in India campaign is a new plan launched by the Prime Minister of India,
Narendra Modi, to give foreign investors a chance to invest in India in number of
businesses. It is an initiative campaign run by the Government of India to cheer up
multinational companies as well as domestic companies at national and international
level in order to manufacture products in India. It is the effort made by the PM to bring
employment in India. This campaign was launched by the Prime Minister on 25th
of
September in 2014 at the Vigyan Bhawan in New Delhi.
It is a new national program designed to transform India into a global manufacturing
hub. It contains a raft of proposals designed to urge companies - local and foreign - to
invest in India and make the country a manufacturing powerhouse.
The Make in India program 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.
The Department of Industrial Policy & Promotion (DIPP) worked with a group of highly
specialised 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, 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.
2. PRIORITY SECTORS TO BE PROMOTED
Automobiles Food Processing Renewable Energy
Automobile Components IT and BPM Roads and highways
Aviation Leather Space
Biotechnology Media and Entertainment Textiles and garments
Chemicals Mining Thermal Power
Construction Oil and Gas Tourism and Hospitality
Defence manufacturing Pharmaceuticals Wellness
Electrical Machinery Ports
Electronic Systems Railways
LIVE PROJECTS
An industrial corridor is a package of infrastructure spending allocated to a specific
geographical area, with the intent to stimulate industrial development. An industrial
corridor aims to crease an area with a cluster of manufacturing or other industry.
Delhi-Mumbai industrialcorridor
Bengaluru-Mumbaieconomic corridor
Chennai-Bengaluru industrialcorridor project
Vizag-Chennaiindustrialcorridor
Amritsar-Kolkata industrialcorridor
3. 5 THINGS THAT SHOW MODI’S ‘MAKE IN INDIA’
CAMPAIGN IS WORKING
1. FDI is urging-
Foreign direct investment between October and May was up 40% to $23.7 billion
fromthe sameperiod a year earlier. Net investments by foreign institutional
investors, or the money coming through financial markets, totaled $40.92 billion
in the fiscal year ended March 31, roughly seven times as much as in the prior
year.
2. Industrial production is warming-
The pick-up in investments is starting to show in the country’s industrial
production numbers. Officialdata show India’s industrialproduction rosean
average2.7% year-over-year in the seven month period fromOctober to May.
Nothing spectacular one may say. But it is a significantstep up fromthe measly
0.6% increaseduring the comparableperiod a year earlier.
3. Foxconn bet billions-
Contract-manufacturing giantFoxconn last weekend announced plans to spend
$5 billion on factories and research and development in the western Indian state
of Maharashtra. Thecompany is one of the many looking to producein India as
the country’s consumers spend moreon electronics.
4. GM doubled down-
General Motors Co. recently announced it will invest another $1 billion. It has
struggled to gain market sharein India butits decision to pour in more funds and
4. retool so it can make cars for domestic consumption and export shows itexpects
things to improve.
5. Uber is ramping up its roll out-
While it is a services company and not a manufacturer, ride-hailing app Uber
Technologies is ramping up its commitment to India. India is already its second-
largest marketin terms of cities served. To meet growing demand, Uber recently
announced will invest$1 billion over nine months to build its network in India.
Why we need it to work?
The core idea of the campaign is to make India a manufacturing super power by inviting
as many foreign manufacturers to set their base in India. So what will happen if many
foreign companies set their manufacturing units in India?
It creates More Employment- More new industries mean more new job
opportunities. India has an unemployment rate of 8% and according to the
recent surveys India will require 55 million more jobs by 2015. "Make in India"
campaign gaining desired traction will be a vitamin injection to the employment
sector.
It increases Industrial sector’s GDP contribution to our Economy- The service
sector’s and Industrial sector's GDP contribution to our economy has improved
considerably in the last fifty years whereas Agricultural sector has taken a huge
hit in GDP contribution to the economy.
The model of “look east and link west” policy will strengthen the industrial
linkages as well as bilateral ties with many countries.
Foreign investment will bring technical expertise and innovative skills along with
the much needed foreign capital.
Export-oriented growth model will improve India's Balance of Payments and help
in accumulating foreign exchange reserves (which is very important given the
volatility in the global economy with multiple rounds of Quantitative Easing
announced by major economies).
5. Manufacturing sector led growth of nominal and per capita GDP. While India
ranks 7th in terms of nominal GDP, it ranks a dismal 131st in terms of per capita
GDP.
With growth in GDP and per capita income, goes the purchasing power. So more
the income of an individual more the purchasing power.
POLICIES UNDER 'MAKE IN INDIA' INITIATIVE
There are 4 major policies under the 'Make in India' program:
1. New Initiatives:
This initiative is to improve the ease of doing business in India, which includes
increasing the speed with which protocols are met with, and increasing transparency.
Here's what the government has already rolled
Environment clearances can be sought online.
All income tax returns can be filed online.
Validity of industrial licence is extended to three years.
States asked to introduce self-certification and third party certification under
Boilers Act.
Paper registers are replaced by electronic registers by businessmen.
Approval of the head of the department is necessary to undertake an inspection.
2. Foreign Direct Investment (FDI):
The government has allowed 100% FDI in all the sectors except Space (74%), Defence
(49%) and News Media (26%).
FDI restrictions in tea plantation has been removed, while the FDI limit in defence
sector has been raised from the earlier 26% to 49% currently.
Private sector banks now allow consolidated FDI up to 74%.
3. Intellectual Property Facts:
6. The government has decided to improve and protect the intellectual property rights of
innovators and creators by upgrading infrastructure, and using state-of-the-art
technology.
The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual
property regime in the country, according to the website.
These are the various types of IPR:
Patent: A patent is granted to a new product in the industry.
Design: It refers to the shape, configuration, pattern, colour of the article.
Trade mark: A design, label, heading, sign, word, letter, number, emblem,
picture, which is a representation of the goods or service.
Geographical Indications: According to the website, it is the indication that
identifies the region or the country where the goods are manufactured.
Copyright: A right given to creators of literary, dramatic, musical and artistic
works.
Plant variety Protection: Protection granted for plant varieties, the rights of
farmers and plant breeders and to encourage the development of new varieties
of plants.
Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor
Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual
Property Right (IPR) in the area of Semiconductor.
4. National manufacturing:
Here the vision is,
To increase manufacturing sector growth to 12-14% per annum over the medium
term.
To increase the share of manufacturing in the country’s Gross Domestic Product
from 16% to 25% by 2022.
To create 100 million additional jobs by 2022 in manufacturing sector.
To create appropriate skill sets among rural migrants and the urban poor for
inclusive growth.
7. To increase the domestic value addition and technological depth in
manufacturing.
to enhance the global competitiveness of the Indian manufacturing sector.
To ensure sustainability of growth, particularly with regard to environment.
MAKE IN INDIA-BENEFITTO ELECTRONICS
MANUFACTURING
India Electronics and Semiconductor Association (IESA) will set up a promotion cell
to encourage foreign investments and form alliances with trade bodies from other
countries to facilitate technology transfers to India.
The electronic system design and manufacturing (ESDM) industry will benefit from
the government’s Make in India campaign and is projected to see investment
proposals worth Rs10,000 crore over the next two years, said the India Electronics
and Semiconductor Association (IESA), an industry body.
The industry body has also been working with the department of electronics and
information technology to set up incubation centres for product start-ups. Five
8. start-up incubation centres will be setup, partially funded by central and state
governments, to speed up the start-up environment in the electronics space, in the
next one year.
This includes an incubation centre in the Delhi-National Capital Region. Bangalore,
Pune and Indore, and states of Kerala and Odisha, among others, have been
shortlisted for opening the remaining incubation centres.
ELECTONICS INDUSTRY- THE PATH TOWARDS
SUCCESS
“Make in India” provides a medley of manufacturing and technology-based incentives
to well-regarded electronics companies to increase the speed and skill of India’s
electronic infrastructure –the biggest of catalysts being a 100 percentforeign direct
investment rate.
India aims to become as competitive in the electronics industry as South Korea and
Japan, and has untapped potential in becoming a role model nation that can utilize
alternative energy. Should “Make in India” become a successfulventure, cooperation
9. with the U.S. will only become easier. Foreign investors would benefit tremendously, as
their capital would gradually be converted to lay the foundations for high-tech and
sustainableenergy. Globally, their companies would be soughtout for ideologies,
blueprints and agreements.
India’s electronics economy will stabilize despite increasing energy consumption, with
import duties on electronic goods being naturally cut. High-tech products like
smartphones, SIMcards, LED and components of defense equipment will only
constitute a small menu of India’s fullpotential. As the rupee becomes healthier, India
will play a cardinal role in fighting climate changewith economic powerhouses
continually funneling money into its energy and electronics industries. Itis therefore in
investors’ highestinterest to pay close attention to “Make in India.”
POSITIVE INTEREST BY VALUABLE COMPANIES
Spice Group: In January 2015, Spice announces Rs 500-crore investment in setting
up a manufacturing unit in Uttar Pradesh. Thecompany also signs a Memorandum of
Understanding (MoU) with the state government for setting up the factory.
According to Dilip Modi, chairman of Spice Group, They are delighted to announce
their investment plans to set up a mobile manufacturing unit in Uttar Pradesh with
the support of the state government. With a local manufacturing plant, Spice Group
can achieve its vision to create affordable and high-technology mobile products for a
larger audience. Uttar Pradesh has had a strong connection with their group, ever
since they set up the country’s first photocopier manufacturing plant in the state.
Huawei: In February 2015, Chinesehandsetmajor Huawei launched a 5,000-seater
research & development (R&D) centre in Bengaluru, the company’s largest such
facility outside China and the first R&D centre set up by a Chinese company in India.
10. The investment in setting up the centre was more than $170 million (around Rs
1,050 crore. With the planned expansion of this facility, the company might look at
bringing more work here, Wilson Wang, chief operating officer of Huawei India R&D
center said.
Samsung: In May 2015, Samsung India signed an agreement with the micro, small
and medium enterprises ministry to open MSME-Samsung Digital Academy. Under
this, the company will offer the digital academy courses in collaboration with the
ministry and train young minds on developing apps that run on the Tizen OS across
a multitude of devices like smart phones, televisions and tablets.
Xiaomi-Foxconn: In August 2015, the first India-made Smartphone of Xiaomi, the
world’s third-largest handset manufacturer, was rolled out from an assembly line of
Foxconn’s manufacturing unitat SriCity, on the Andhra Pradesh-Tamil Nadu border.
It was earlier in 2015 that Andhra Pradesh Chief Minister N Chandrababu Naidu had
held talks with senior executives of Taiwanese manufacturer Foxconn (Hon Hai
Precision Industry Co) and China’s Xiaomi during his visit to China, inviting them to
set up a base in his state.
Foxconn: In August2015, Foxconn, theworld’s largestcontract-manufacturing firm
for consumer electronics, signed a MoU with the Maharashtra government to invest
$5 billion over three years in setting up a manufacturing unit in the state.
Lenovo: In August 2015, Chinese personal computer and smartphone maker
Lenovo said it would startlocal manufacturing of Lenovo and Motorola smartphones
in Sriperumbudur, near Chennai. The company had roped in Flextronics, a large
electronics contract manufacturer and a competitor of Foxconn’s, to manufacture
the phones at its unit.
11. Optiemus-Wistron: In November 2015, India-based Optiemus Infracom, a $650-
million telecom equipment maker, tied up with Taiwan’s Wistron Corporation to set
up a facility in India to make smartphones. Over the next five years, the two are
expected to invest $200 million in the manufacturing facility in Noida. Optiemus
manufactures handsets for HTC.
CONCLUSION
The apprehensions of industrial sector are genuine. But the government’s effort will act
as the catalyst in mitigating these apprehensions. Also, PM has clearly mentioned that
India is seeking long term capital investment because short term investment is volatile
in nature and only aims at profit making. This aspect also reflects in PM’s definition of
FDI i.e. “First Develop India”. So, these efforts will give the much needed initial thrust
to this campaign and its success will make India the powerhouse of manufacturing
sector in the world.
Looking at the responses by the above mentioned companies to invest in India within a
period of less than one year, I feel it’s a great beginning towards the progression and
success of Make in India. If the working of the industries keeps ascending, then Make in
India will definitely turn into a success story from a mere idea.