Make in India

Make in India is an initiative launched by the Government of India to encourage

national, as well as multi-national companies to manufacture their products in India. It
was launched by Prime Minister Narendra Modi on 25 September 2014. India emerged,
after initiation of the programme in 2015, as the top destination globally for foreign direct
investment (FDI), surpassing the United States of America as well as the People's
Republic of China. In 2015, India received US$63 billion in FDI.

Introduction
Prime Minister Narendra Modi launched "Make in India" on 25 September 2014 in a
function at the Vigyan Bhavan.[2] On 29 December 2014, a workshop was organised by
the Department of Industrial Policy and Promotion which was attended by PM Modi,
his cabinet ministers and chief secretaries of states as well as various industry
leaders.[3]
The major objective behind the initiative is to focus on job creation and skill
enhancement in 25 sectors of the economy.[4] The initiative also aims at high quality
standards and minimising the impact on the environment.[5][6] The initiative hopes to
attract capital and technological investment in India.[4]
The campaign was designed by Wieden+Kennedy.[7] Under the initiative, brochures on
the 25 sectors and a web portal were released. Before the initiative was launched,
foreign equity caps in various sectors had been relaxed. The application for licenses
was made available online and the validity of licenses was increased to three years.
Various other norms and procedures were also relaxed.[8]
In August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in
the defence sector and 100% in railways infrastructure. The defence sector previously
allowed 26% FDI and FDI was not allowed in railways. This was in hope of bringing
down the military imports of India. Earlier, one Indian company would have held the
51% stake, this was changed so that multiple companies could hold the 51%.[9]
Between September 2014 and November 2015, the government received ₹1.20 lakh
crore (US$19 billion) worth of proposals from companies interested in manufacturing
electronics in India.[10]
24.8% of smartphones shipped in the country in the April–June quarter of 2015 were
made in India, up from 19.9% the previous quarter. [11][12][13]

Plans[edit]
India emerged, after initiation of the programme in 2015 as the top destination globally
for foreign direct investment, surpassing the United States as well as the People's
Republic of China.[14][15][16]
With the demand for electronic hardware expected to rise rapidly to US$400 billion by
2020, India has the potential to become an electronic manufacturing hub. [17] The
government is targeting to achieve net zero imports of electronics by 2020 by creating a
level playing field and providing an enabling environment.[17]

Sectors[edit]
Make in India focuses on the following twenty-five sectors of the economy:

 Automobiles

 Automobile Components
 Aviation
 Biotechnology
 Chemicals
 Construction
 Defence manufacturing
 Electrical Machinery
 Electronic systems
 Food Processing
 Information Technology and Business Process Management
 Leather
 Media and Entertainment
 Mining
 Oil and Gas
 Pharmaceuticals
 Ports and Shipping
 Railways
 Renewable Energy
 Roads and Highways
 Space and astronomy
 Textiles and Garments
 Thermal Power
 Tourism and Hospitality
 Wellness
As per the new Govt. Policy 100% FDI is permitted in all the above sectors, except
for space (74%), defence (49%) and news media (26%).[18][19]

Ease of doing business[edit]

India ranks 130th out of 190 countries in the World Bank's 2016 ease of doing business
index, covering the period from June 2014 and June 2015. India was ranked 134th in
the 2015 index.[20]
In February 2017, the government appointed the United Nations Development
Programme (UNDP) and the National Productivity Council to "to sensitise actual users
and get their feedback on various reform measures". The World Bank does not consider
reforms initiated by a government in its ease of doing business index, but instead
considers feedback from actual beneficiaries of those reforms. The move is intended to
take advantage of this fact to improve India's ranking on the index, and marks a shift
from India's previous policy of questioning the World Bank's ranking methodology. In
particular, the government criticised the World Bank's decision to survey only two cities -
Delhi and Mumbai - and use it to rank the whole of India.[21]
A survey of 17 Indian cities in the World Bank's Doing Business in India 2009 report
ranked Ludhiana, Hyderabad, Bhubaneshwar, Gurgaon, and Ahmedabad as the top five
easiest cities to do business in India.[22]
Make in India Week[edit]
A "Make in India Week" event was held at the MMRDA Grounds at the Bandra-Kurla
Complex in Mumbai from 13 February 2016. The week long multi-sectoral industrial was
attended by 2500+ international and 8000+ domestic, foreign government delegations
from 68 countries and business teams from 72 countries. 17 Indian states, mostly BJP-
ruled, also held expos. At the close of the event, DIPP Secretary Amitabh Kant stated
that it had received over ₹15.2 lakh crore (US$240 billion) worth of investment
commitments and investment inquiries worth ₹1.5 lakh
crore (US$23 billion). Maharashtra led all other states receiving ₹8 lakh
crore (US$120 billion) of investments.[51][52]
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 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. The Modi
government has vowed to remove these hurdles and make the nation an ideal destination for
investors to set up industries.

Let’s discuss Make in India Policies now. There are 4 Policies of Make in India,
namely

1. National Manufacturing Policy

2. National Intellectual Property Rights (IPR) Policy
3. Foreign Direct Investment Policy
4. New Initiatives
Advantages of Make in India
Let’s have a look at the 10 biggest 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 merchandize will
increase dramatically.
5. Up-gradation of Technology
India being an underdeveloped country obviously lack various latest
mechanization, which, is a big hurdle in the path to development of the nation.
Hence, with the myriad of countries coming forth by the make In India crusade,
India will be given the opportunity to make use of the latest technology these
countries bring along.

Not only will India benefit from the knowledge and use of the technology but
also, the concerned nations will be provided with a skilled and erudite labor.

6. Development of Rural Areas

It is a well-known fact, that a factory set up not only improves a particular area
but also provides for the locals with employment, thus the quality of life of people
would automatically enhance. Amenities like schools, hospitals, and other public
conveniences will be developed for the betterment of the public.

7. 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

Now let’s have a look the biggest 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.

2. Loss for Small Entrepreneurs

The Make in India campaign welcomes foreign countries to manufacture in India
with open arms, this automatically eases up the various restrictions over trade
with foreign countries, inviting the attention of the international commercial
companies. However, these companies will not only seduce the Indian population
but also would dominate the small local entrepreneurs and force them out of
business.
3. 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.

7. Pollution
One of the biggest problems which is 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 ecologically.

Make in India Campaign Objective

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 products worldwide.

CONCLUSION

India has the capability to push its manufacturing contribution to GDP to 25% by 2025.
Government has to act as the central pivot of aligning industries, private companies, public
sectors and all stakeholders in realizing this vision. Government has to put policies in place be it
sector reforms, labour reforms or the elimination of business barriers. The Government of India
has taken a number of steps to further encourage investment and improve business climate.
„Make in India‟ mission is one such long term initiative which will help to realize the dream of
transforming India into a „manufacturing hub‟. Hon’ble Prime Minister’s call for „zero defect
and zero effect‟ manufacturing resonates well with our industry as we grow and produce for the
world. India’s expanding economy offers equal investment opportunities to domestic
entrepreneurs and international players. It is our responsibility to leverage emerging economy