MAKE IN INDIA

An initiative by the Government of India to

encourage companies to manufacture in India and
incentivize dedicated investment into manufacturing
and to provide more employment opportunities.
 
 ECONOMIC SECTORS THAT MAKE IN INDIA FOCUSES ON:

The main sectors of economy where MAKE IN

INDIA focuses on are :-
• Automobiles
• Aviation
• Petrochemicals
• Pharmaceuticals
• Renewable Energy Resources
 AUTOMOBILES
Investment in 2018-2019
• In April 2018, many
automobile companies like
KIA, MG, and HYUNDAI
announced that they would
invest over $5.5 billion to
build a car manufacturing
plant in Anantpur, Sanand,
and Mordabad in order to
increase their production.
Investment in 2019-2020
• In June 2019, many other
foreign companies like
TESLA, SAIC MOTOR, PSA,
and BYD invested over $10.02
billion in automobile industry
with the main purpose of
building automobile plants at
Mumbai, Halol, and Chennai.
• In the same year KIA and MG
company also increased their
investment in INDIAN
automobile industry by 15%.
 AVIATION
Investment in 2018 -
2019
• In May 2018, French drone
manufacture LH AVIATION
announced a manufacturing plant
to be set up in INDIA to produce
drones with an investment of over
$2.30 billions
• During MAGNETIC
MAHARASHTRA : in 2018, Thurst
Aircraft Pvt Ltd signed a MOU
with Govt. of Maharashtra to build
an airplane manufacturing plant
in Palghar district with an
investment of Rs.35,000 crore.
Investment in 2109-
2020
• According to data released by DPIIT, FDI
inflow in India’s air transport sector
reaches US$3.50 billion between April
2019 and December 2020.
• On February 25,2020, the AII issued
tenders for construction of the first phase
of an international airport at Gujarat,
entailing an investment of Rs.990 crore .
In the next month AII announced to
invest over US$3.58 billion to develop
infrastructure at airports.
• LH AVIATION & IDEAFORGE invested
over $1.50 million to set up drone
manufacturing plant in Gujarat and
Mumbai and to provide drone delivery of
essentials.
 PETROCHEMICALS
Investment in 2018-
2019
• In April 2018, a German based
multinational B-ASF
chemical based company and
petrochemical manufacture
announced to invest over
$1.20 billion to set up a
petrochemical and polymer
manufacturing plant at
Jamnagar, Gujarat.
Investment in 2019-
2020
• In March 2020, The Indian
chemical industry stood at $178
billion after B-ASF invested
around $ 1.50 billion in setting
up a manufacture plant.
• In the next month a Japanese
based chemical manufacturing
company i.e. MITSUBISHI
chemicals invested around
U.S $500 millions to set up a
fertilizer manufacture plant in
Haldia district of Bengal.
 PHARMACEUTICALS
Investment in 2018-
2019
• The drugs and
pharmaceuticals sector
attracted cumulative FDI
inflow from Johnson &
Johnson worth US$ 12.75
billion between April 2018 and
December 2018 according to
the data released by
Department for Promotion of
Industry and Internal Trade
(DPIIT).
Investment in2019-
2020
• The Indian biotechnology industry
comprising biopharmaceuticals,
bio-services, bio-agriculture, bio-
industry, and bioinformatics was
valued at US$ 64 billion in 2020.
In February 2020, the Russian
Ministry of Health allowed Glen
mark Pharmaceuticals to market
its novel fixed-dose combination
nasal spray in Russia which
increased the size of
pharmaceuticals industry of India
by 20%. 
 RENEWABLE SOUCES OF ENERGY
Investment in
2018-2019
• India’s green economy, investments in
the country’s renewable energy sector
doubled over the last year to around
$20 billion in 2018, surpassing the
capital expenditure in the thermal
power sector, according to a study.
• The joint study by Paris-
based International Energy Agency
(IEA) and Council on Energy,
Environment and Water (CEEW) said
“reduced risk perception of financiers
funding renewable energy projects in
India resulted in investments in the
sector doubling over the last five
years."
Investment in 2019-
2020
• The stellar jump in investments
in solar and wind energy projects
in India came because Enel
increased their investment by 14
per cent to $11.7 billion, led by a
39 per cent slump by China at
$2.88 billion, a 6 per cent
increase by US at $2.36 billion
and a 4 per cent increase by
renewable energy investments in
India by Europe at $2.22 billion
during 2019.
 Possible reasons for
growth
• The main factors behind such growth of automobile industry in India is the
increasing affluence of the average consumer, overall GDP growth, the opportunity
to offer low-cost or competitive small cars, increasing capability of Indian
manufacturers and the growing presence of global manufacturers.
• India is projected to be the third largest aviation market by 2020, and the largest by
2030. According to the rough estimates, the Indian Aviation sector is likely to see
investments totaling $15 billion in between the financial years 2016-17 and 2019-
20; of which $10 billion is expected to come from the private sector alone and 100%
FDI is allowed under the automatic route for Greenfield as well as Brownfield
projects.
• The growth drivers of the petrochemical sector in India include a large domestic and
foreign demand for chemicals and petrochemicals.. The per capita consumption of
chemicals is lower in India, compared to western countries, therefore presenting
immense scope for setting up export-oriented manufacturing units through new
investments.
• The government’s concerted push towards the pharmacy sector through
initiatives such as Make in India, Digital Health Mission etc, has cemented
India as a leading global capital market. The total market size of the Indian
pharmacy industry is expected to reach $130 billion by 2030. And with
access to large consumer markets, generation of new employment
opportunities, increase in research and development and rise in net foreign
exchange earnings, the Indian, as well as foreign businesses, are betting big
on the sector.
• The government has also taken several steps to induce foreign investment in this
sector. The government is promoting green energy by declaring an aggressive
target of 450 GW of green energy capacity by 2030.India allows 100% FDI for RE
projects to facilitate easy transfer of capital and technology. The new government,
in its first post-election budget, has also announced several welcome measures such
as tax breaks for setting up mega-manufacturing plants for solar cells, lithium
storage batteries, electric vehicles and charging infrastruc ture.