MAKE IN INDIA- Key to revival of economy

Slide-1
 Make in India program was launched by Prime Minister Narendera Modi on
25th September 2014 as an initiative to encourage various companies to
manufacture in India. Make in India is an initiative under Atma Nirbhar
Bharat Abhiyan which is dedicated to developing a modern independent
India.
 Make in India’s movement is to attract foreign capital to invest in Indian
manufacturing companies to create more employment options and to
transform India into a global design and manufacturing hub.
 This initiative is to promoting manufacturing companies to produce goods
and services in India instead of importing it from other countries and
encouraging citizens to use the made in India products only.
 Make in India is an initiative under Atma Nirbhar Bharat Abhiyan which is
dedicated to developing a modern independent India. 

Slide-2

Need for Make in India Scheme

In 2013, India’s growth rate had fallen to its lowest level in a decade, thus putting it into the
category of “Fragile Five” nations. The term was coined by Morgan Stanley in 2013 to
highlight the economies that have become too dependent on unreliable foreign investment to
finance their growth. The five members of the Fragile Five were Turkey, Brazil, India,
South Africa, and Indonesia.

Along with it, other problems of India’s manufacturing sector were its sluggish growth (in
terms of its contribution to GDP), inefficient working mechanism and lowly-developed
research and development base.

These all reasons necessitated the need for a comprehensive action towards the development
of the manufacturing sector, thus resulting in the Make in India Mission.

Slide-3

The purpose of the initiative is:

 Making India a global manufacturing hub.
 To encourage Domestic companies and Multinationals to manufacture their products
in India.
 Creating millions of jobs in the country.
 Attract foreign investments.
 To implement intellectual property rights.
 To develop the nation’s manufacturing sector.
  To boost the confidence of investors and manufacturers to build and invest in India.
 To improve India’s rank on the Ease of Doing Business index.
 To eliminate the hassles of laws and regulations in the bureaucratic process of
business.
 To promote job creation and innovation in the limits of the country.
 To make government transparent and accountable in its working.

With this objective, the initiative focuses on 25 sectors of the economy for job creation and
skill enhancement. Some of these sectors are automobiles, chemicals, IT, pharmaceuticals,
textiles, ports, aviation, leather, tourism and hospitality, wellness, railways, design
manufacturing, renewable energy, mining, bio-technology, and electronics. 

Slide-4
CHALLENGES FOR MAKE IN INDIA

1. India has about 60% of cultivable land. The thrust on manufacturing is said to affect
agriculture negatively. It can even cause a permanent disruption of arable land.
2. It is also believed that the rapid industrialization (even with the thrust on “going green”)
can lead to a depletion of natural resources.
3. A fallout of inviting large-scale FDI is that local farmers and small entrepreneurs may not
be able to face the competition from international players.

Slide-5

Make in India – Schemes

Several schemes were launched to support the Make in India programme. These schemes are
discussed below:

Startup India

The main idea behind this programme is to build an ecosystem that fosters the growth of
startups, driving sustainable economic growth, and creating large-scale employment.

Digital India

This aims to transform India into a knowledge-based and digitally empowered economy. To
know more about Digital India, click on the linked page.

Smart Cities

This mission aims to transform and rejuvenate Indian cities. The goal is to create 100 smart
cities in India through several sub-initiatives.

AMRUT
AMRUT is the Atal Mission for Rejuvenation and Urban Transformation. It aims to build basic
public amenities and make 500 cities in India more livable and inclusive.

Swachh Bharat Abhiyan

This is a mission aimed at making India more cleaner and promoting basic sanitation and
hygiene. For more information on Swachh Bharat Mission, click on the linked article.

AGNII

AGNII or Accelerating Growth of New India’s Innovation was launched to push the innovation
ecosystem in the country by connecting people and assisting in commercializing innovations.

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.

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.

Employment for Low skilled workers: As majority of workforce in India is low skilled
therefore Make in India initiative will provide large scale employment opportunities for this
particular segment. Make in India will generate millions of jobs.

Small and Medium Enterprises: Any manufacturing hub need supply of parts which is
boon for SME’s. Make in India will help to generate indirect employment through SME’s.

Reduce Trade Deficit: Compared to Service sector, Industry / Manufacturing sector has

multiplier effect on Exports which will help the government to wipe off India’s trade deficit.
Reduction in trade deficit will have large scale positive impact on the finances and economy
of the country. It will stop devaluation of currency and increase sovereign rating which in
turn will attract more FDI. FDI inflow is cyclic chain with positive ripple effects.

Make in India Logo

The Make in India logo is a lion. It is a lion’s silhouette filled with cogs. This symbolizes
manufacturing, national pride, and strength.

The make in India initiative was launched to encourage manufacturing in

India and ultimately transform India into a global hub for the same. This
would result in increased economic growth as well as employment
generation, and also increase the FDI in India. Various sub-schemes has been
envisioned under this initiative that would help in the development of various
sectors.