MAKE IN INDIA: THE WAY AHEAD

Abstract

The Make in India program was launched by The Hon‟ble Prime Minister
Mr. Modi in September 2014 as part of a wider set of nation-building
initiatives. The programme has been devised to transform India into a
global design and manufacturing hub.

Make in India was launched to respond to a critical situation of 2013, the

much-hyped emerging markets bubble had burst, and India’s growth rate
had fallen to its lowest level in a decade. The promise of the BRICS nations
had faded, and India was tagged as one of the so-called ‘Fragile Five’.
Global investors were in doubt 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. India was on the brink of severe
economic failure.

Against the backdrop of this crisis, and quickly became a rallying cry for
India‟s innumerable stakeholders and partners. 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. But, Make in
India is much more than an inspiring slogan. It represents an International
Journal of Business Administration and Management.

REVIEW OF LITERATURE

1 "Look East, Link West, says PM Modi at Make in India launch". Hindustan
Times. 25 September 2014.

2 "Centre, States to ready 'Make in India' plan". The Hindu. 28 December

2014. Retrieved 28 February 2015.

3 "7 facts not known about PM Modi's Make In India". Newsroom Post. 27
May 2015. Retrieved 27 May 2015.

4 "Focus on 'Make In India'". Business Standard. 25 September 2014.

Retrieved 27 February 2015.
5 "Modi for 'zero defect' Make in India products". The Hindu Business Line.
29 December 2014. Retrieved 27 February 2015.

OBJECTIVES

1. Examine the Concept of Make in India and major initiatives under Make
in India Program and its effect on economic growth pattern in Indian
Economy.

2. Identify the objectives, aims and vision of the Make in India initiative in
the manufacturing sector.

3. Find out the major initiatives which are taken under the Make In India
program in various sectors in the Indian Economy.

RESEARCH METHODOLOGY

Present study focuses on the changing nature of the Indian economy since
Independence, it also focuses on the Make in India project and its impact
on automobile industries. It aims to make India a manufacturing hub Centre
in the world by attracting the flow of FDI from various countries. It also
throws light on the competitive nature of Indian Industries which is
comparatively defined with China.

The study to be conducted is based on a descriptive approach since we

aim to outline existing models used for evaluating the “Make in India”
campaign. Additionally, the report is also going to document and describe
what companies consider costs and benefits with the „Make in India‟
campaign, and this is based on the findings of the empirical study. This
study will also include some explorative elements, mainly during its early
years. Stages, when examined the secondary sources available in order to
develop understanding of the research area. During this phase we were
also able to more clearly define purpose as well as the limitations adopted
for the descriptive part of the research. Some parts of this thesis will be
prescriptive in nature, since this part focuses on constructing a method for
identifying and measuring the benefits and effectiveness of “Make in India‟
campaign investments.

LIMITATIONS OF THE RESEARCH

This research is subjected to various limitations. The major drawback is that,

studies on make in India in the areas are scarcely found. Data and documentation
are rarely available. Further, information on make in India only found in terms of
State annual reports, State’s web portals and Human Development reports which
offered only limited access to the secondary data on make in India.

The other limitations are as follows:

1. Unfavourable climatic conditions for data collection...

2. Restrictions of covid pandemic SOP…

3. Time constraints for in-depth analysis of data and comparison…

4. Lack of availability of primary data….

5. Lack of reliability and accuracy of secondary data sources…

6. Lack of prior research studies on the topic…

7. Lack of immediate practical implications….

8. Findings of the study are mostly useful for the long run not short run…

9. Sample is less….

10. Limited access to data…

11. Time constraints for data collection….

12. Lack of legitimacy…

INTRODUCTION

On 14 August 1947, Nehru had declared: “Long years ago we made a tryst
with destiny, and now the time comes when we shall redeem our pledge.
The achievement we celebrate today is but a step, an opening of
opportunity, to the great triumph and achievements that await us.” He
reminded the country that the tasks ahead included “the ending of poverty
and ignorance and disease and inequality of opportunity”.

These were the basic foundations on which India embarked upon its path
of development since gaining independence in 1947. The purpose of this
talk is to analyse how much has India really achieved in the last 55 years in
fulfilling the aspirations on which it was founded.

The Government of India’s development strategy has been to establish a

socialistic pattern of society through economic growth with self-reliance,
social justice and alleviation of poverty. These objectives were to be
achieved within a democratic political framework using the mechanism of a
mixed economy where both public and private sectors co-exist. India
initiated planning for national economic development with the
establishment of the Planning Commission.

Make In India 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.

International Journal of Business Administration and Management.Prime

Minister Narendra Modi launched "Make in India" on 25 September 2014 in
a function at the Vigyan Bhavan.1 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.

The major objective behind the initiative is to focus on job creation and
skill enhancement in 25 sectors of the economy. The initiative also aims at
high quality standards and minimising the impact on the environment.3 The
initiative hopes to attract capital and technological investment in India.

The campaign was designed by Wieden+Kennedy. 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 licences was made available online and the
validity of licences was increased to three years. Various other norms and
procedures were also relaxed.
 AIMS AND VISIONS OF MAKING INDIA PROGRAMME

As mentioned in the website Manufacturing currently contributes just

over 15% to the national GDP. The aim of this campaign is to grow this to a
25% contribution as seen with other developing nations of Asia. In the
process, the government expects to generate jobs, attract much foreign
direct investment, and transform India into a manufacturing hub preferred
around the globe. The logo for the Make In India campaign is an elegant
lion, 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 Upadhyaya who had been born on the same date in 1916.

The initiative also seeks to actively target top companies across key
sectors in identified countries to encourage them to invest in
India.Domestically, the „Make in India‟ initiative aims to identify

domestic companies having leadership in innovation and new technology

for turning them into global players. The focus will be on promoting green
and advanced manufacturing and helping these companies to become an
important part of the global value chain. The Government has identified.

VISION OF MAKING INDIA CAMPAIGN

1.An increase in manufacturing sector growth to 12-14% per annum over

the medium term.
2.An increase in the share of manufacturing in the country‟s Gross
Domestic Product from 16% to 25% by 2022.

3.To create 100 million additional jobs by 2022 in the manufacturing sector.

4.Creation of appropriate skill sets among rural migrants and the urban
poor for inclusive growth.

5.An increase in domestic value addition and technological depth in

manufacturing.

6.Enhancing the global competitiveness of the Indian manufacturing sector.

7.Ensuring sustainability of growth, particularly with regard to the

environment.

THE FOCUS AND ACHIEVEMENTS OF

MAKE IN INDIA PROGRAMME

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%. "Cabinet
approves raising (FDI) cap in defence to 49 per cent, opens up railways".

"Make in India: Centre gets Rs 1.20 lakh crore worth investment

proposals in electronics sector".

. "Global Electronics Manufacturers Propose Rs 90,000 Crore Investment

In India".

"Make in India: Govt receives proposals worth Rs 90,000 crore from global
electronics companies".

"E-boost for Make in India: Global electronic companies line up Rs 90,000

cr for India plants".
Between September 2014 and November 2015, the government received
Rs.1.20 lakh crore (US$18 billion) worth of proposals from companies
interested in manufacturing electronics in India. 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.

The focus of Make In India programme is on creating jobs and skill

enhancement in 25 sectors. Make in India focuses on the following twenty-
five sectors of the economy:

1. AUTOMOBILES

India is one of the world’s largest tractors & two-wheeler manufacturers.

In terms of manufacturing output, India is the 2nd largest in two-wheelers, 7th largest in
commercial vehicles, 6th in passenger vehicles and the largest in tractors globally.

India is projected to be the world's third-largest automotive market in terms of volume by

2026.

The Automobile industry in India is a significant driver of macroeconomic growth and

technological development.

The Auto & Auto Component industries contribute ~7% to the country’s GDP.

The industry is likely to grow from USD 80 Bn to USD 270 Bn by 2026 and generate an
additional 65 Million jobs.

India will be selling 20% blended ethanol by 2025.

The Department of Heavy Industry has helped set up India's first Machine Tool Park
(TMPT) with a world-class facility on 530 acres of land.

Department of Heavy Industry entails promoting engineering industry viz. machine tools,
heavy electrical, industrial machinery and auto industry and administration of 29 CPSEs and
5 autonomous organisations.

The industry provides direct and indirect employment to over 19 mn people.

2. Automobile Components
The Automotive industry in India is leading in many segments- primarily in Passenger Cars,
Utility Vehicles, Vans and two Wheelers.

India’s Automotive Industry is worth more than USD 100 bn and contributes 8% of the
country's total export and accounts for 2.3% of India's GDP and is set to become the 3rd
largest in the world by 2025.

The Automobile component industry in India is composed of organised and unorganised

sectors. The organised sector refers to original equipment manufacturers (OEMs) and is
engaged in the manufacture of high-value precision instruments. Whereas, the unorganised
sectors consist of low-valued products catering to after-market services.

Various sub-sectors of the Automobile component industry in India are engine parts, drive
transmission & steering parts, body and chassis, suspension and braking parts, equipment,
electrical parts and others such as fan belts, die-casting and sheet metal parts.

3. Aviation

The Indian civil aviation sector has grown to become the 3rd largest in the world in terms of
domestic traffic.

India is now a green zone where no permission is required to operate a drone. PLI scheme
has been there to promote Drone manufacturing.

Drone market is projected to increase from INR 2900 Cr in 2020 to about INR 77,300 Cr in
2025 at a CAGR of 80% and is further expected to reach up to INR 2,95,000 Crore by 2030.

Under UDAN, as on 28.02.2023, 469 routes connecting 74 unserved and underserved

airports including 9 Heliports & 2 Water aerodromes have been operationalized.

4. Biotechnology

The Biotechnology industry in India is divided into the following segments-

Biopharmaceuticals, Bio-services, Bio-agriculture, Bio-Industrials and Bio-IT.
India’s Bio-Economy is on its way to achieve USD 150 bn target and over 300 bn dollars by
2030 from the current USD 70 bn to contribute effectively to PM’s vision of a USD 5 tn
economy by 2024-25.

Eastern Himalayan Region is one of the mega-biodiversity rich zones and is among the 34
biodiversity Hotspots of the world.

India is among the top 3 in South Asia and top 12 destinations for biotechnology in the
world, with approximately 3% share in the global Biotechnology industry.

India has the 2nd highest number of USFDA approved manufacturing plants outside the
US.

5. Chemicals
The Chemical industry in India provides several building blocks and raw materials for many
industries, including textiles, paper, paints, soap and detergents, pharmaceuticals and
agrochemicals.

India is the 6th Largest producer of Chemicals in the world and 3rd in Asia. India ranks 14th
position in the export of chemicals.

India is 4th largest producer of agrochemicals in the world and manufactures more than
50% technical grade pesticides.

The Indian chemical sector continues to grow at a rate of 1.2-1.5 times the GDP.

India is the largest producer and exporter of castor oil in the world and is responsible for
almost 85-90 % of total global exports in this segment.

Market size of the Chemicals & Petrochemicals sector in India is worth ~$178 bn.

Indian chemicals and petrochemicals industry is growing to new heights, looking forward to
an investment of INR 8 lakh cr by 2025.

India exports Chemicals to more than 175 countries. It accounts for 13% of India’s total
exports.

India is the second highest producer and consumer of chemical fertilisers in the world. Per
hectare fertiliser consumption in the country has increased by 75% during the last two
decades.
6. Construction

Infrastructure plays a huge role in propelling other industries and India’s overall
development. The government, therefore, focuses on the development of infrastructure and
construction services through focused policies such as open FDI norms, large budget
allocation to the infrastructure sector, smart cities mission, etc.

The Construction industry in India consists of the Real estate as well as the Urban
development segment.

The Sector employs 51 mn people and thus is the second largest employing sector in India.

India aims to become the third largest construction market globally by 2025.

India has 100 Smart Cities, and 11 Industrial Corridors within the country.

The real estate sector is also the third largest sector in terms of FDI flow, it is the second
largest employment generator, and third largest sector to induce economic growth.

Gujarat has emerged as the largest cement plant in the world.

7. Defence manufacturing

The Indian Defence sector, the second largest armed force is at the cusp of revolution. The
Government has identified the Defence and Aerospace sector as a focus area for the ‘Atma
Nirbhar Bharat’ or Self-Reliant India initiative, with a formidable push on the establishment
of indigenous manufacturing infrastructure supported by a requisite research and
development ecosystem.

GOI aims to achieve a turnover of USD 25 Bn including export of USD 5 Bn in Aerospace

and Defence goods and services by 2025.

Defence exports reach an all-time high of approx. INR 16,000 crore in FY 2022-23, over 10-
times increase since 2016-17.

8. Electrical Machinery
The Indian electrical equipment industry comprises of two broad segments –

○ Generation equipment (boilers, turbines, generators)

○ Transmission & Distribution (T&D) and allied equipment like transformers,
cables, transmission lines, etc

The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to
overall GDP.

India is the Second-largest mobile phone producer in the world (from just 2 mobile phone
factories in 2014).

Exports of mobile phones have increased from USD 0.2 bn in 2017-18 to USD 1.7 bn in
2021(April 21-September 21).

Engineering Goods sector constitutes the largest, more than 27%, share of India’s total
exports basket. Growth in Engineering Goods exports in recent years has largely been due
to the Zero duty Export Promotion Capital Goods (EPCG) scheme.

9. Electronic systems

The Electronics System Design & Manufacturing (ESDM) industry includes electronic
hardware products and components relating to information technology (IT), office
automation, telecom, consumer electronics, aviation, aerospace, defence, solar
photovoltaic, nano electronics and medical electronics. The industry also includes design-
related activities such as product designing, chip designing, Very Large-Scale Integration
(VLSI), board designing and embedded systems.

India’s digital base is the second largest in the world and is growing at the second-fastest
rate among the 17 leading economies.

The Digital India Program has been transforming the Country into a digitally empowered
society and knowledge economy since its launch in July 2015.

The domestic demand for electronics hardware is expected to rise rapidly to about USD 400
bn by 2025. The Government attaches high priority to electronics hardware manufacturing,
and it is one of the important pillars of both the “Make in India” and “Digital India”
programme of Government of India.
Vol2 of Vision document gives detailed targets and roadmap for India’s transformation into
USD 300 bn electronics manufacturing powerhouse by 2026, from the current USD 75 bn.

India is among the world’s fastest growing fintech markets with 6,636 FinTech startups. The
Indian FinTech industry’s market size is USD 31 Bn in 2021 and has the highest FinTech
adoption rate at 87 %.

India has become the 2nd largest mobile phone manufacturer globally in FY 2021-22.

10. Food Processing

India is the 3rd largest fish producing country with about 8% share in global fish production.

India stands 2nd in aquaculture production and one of the top cultured shrimps producing
nations in the world.

India offers the largest diversified production base and has a growing food industry. India is:

○ World’s largest milk-producing nation

○ World’s largest producer, consumer and exporter of spices
○ World’s second-largest producer of food grains, fruits and vegetables
○ World's 3rd largest producer of fish
○ India is the 2nd largest producers of Wheat
○ World's 2nd largest Aquaculture Producer
○ 2nd largest exporter of ‘Shree Anna’ i.e. millets in the world.
○ World's 4th largest exporter of fish
○ 4th Largest Seafood Exporter
○ 5th largest exporter of millets globally
○ 5th largest exporter of coffee globally
○ 8th in meat production in the world
○ Rajasthan is the largest producer of turmeric in India

India ranks 1st in milk production and contributes 24% to global milk production growing at
a CAGR of 6.38 % from 2014-2022 to reach 221.1 MT in 2021-22.

India ranks 3rd in global egg production and produced at least 129.53 bn nos. in 2021-22
with an 8% annual growth rate.
India emerges as the world’s largest producer and consumer of sugar and world’s 2nd
largest exporter of sugar.

Indian Food Processing market to be valued at USD 535 Bn by 2025 growing at a CAGR of
15.2%.

Food Processing sector engages maximum number of people with 20.05 lakhs consisting
12.32 % of the total employment share.

There are 731 Krishi Vigyan Kendras (KVKs) in the country. The technologies developed
out of research conducted by ICAR are taken to farmers’ fields for its assessment by KVKs
to ascertain their location specificity under various farming systems. KVKs also conduct a
large number of technology demonstrations at farmers’ fields for their adoption by the
farmers.

The requirement of cold storage in the country is 35 mn MT, while capacity of such storage
is around 32 mn MT.

31% of export agricultural and processed food products target for 2022-23 achieved.

India’s agriculture exports touched a historic high of $50 Bn in FY 2021-22.

USD 26 Bn- Size of Indian Poultry Industry in FY 2021-22.

India is one of the largest producers of millets and nutri-coarse cereals in the world with an
estimated share of around 41 percent in the global production.

11. Information Technology and Business process management

Internet connections jumped from 25.15 crore in March 2014 to 83.69 crore in June 2022,
registering a growth of 232%.

The IT-BPM industry in India constitutes 8% of India's GDP. The industry is the largest
employer within the private sector, employing 3.9 mn people.

More than 500 mn people are estimated to be using smartphones in India, and three-
quarters of them are online. Indians are also amongst the top downloaders of apps in the
world.
India’s e-commerce market is projected to grow at 18% annually through 2025.

India is the third largest Unicorn hub globally with a total valuation of USD 168 bn.

IT hardware is estimated to achieve INR 3 tn worth production in 4 years and domestic

value addition is expected to rise from the current 5-10 % to 20-25 % in 5 years.

Computer Software & Hardware has emerged as the top sector during April 2021 with
around 24% share of the total FDI Equity inflow.

The Telecom industry in India is the second largest in the world with a subscriber base of
1.17 bn as of August 2022 (wireless + wireline subscribers).

India has an overall tele-density of 85.11 %, of which, the tele-density of the rural market,
which is largely untapped, stands at 58.37% while the tele-density of the urban market is
134.78%.

As on 31.01.2023, 5G services have been started in 238 cities distributed across all licence
service areas.

12. Leather

The Leather industry in India holds a significant place in the Indian economy.

The Leather industry in India is consistent in its high export earnings and is among the top
10 foreign exchange-earners for India.

Export of different categories of Footwear holds a major share of about 47.59% in India’s
total leather & leather product exports.

Leather sector supports the livelihood of more than 45 lakh people in the country.

India is the 2nd largest producer of footwear, 2nd largest exporter of Leather Garments, the
5th largest exporter of Leather Goods and 3rd Largest Exporter of Saddlery and Harness
items.

7,000 small industries units are connected with the Footwear sector which holds great
significance to the economy.
13. Media and Entertainment

Globally, India is the largest consumer of mobile data and the second-largest television
market.

India is currently the world’s second-largest telecommunications market with a subscriber

base of 1.18 bn. India’s growing mobile economy now constitutes about 98% of all
telephone subscriptions.

India secures 4th rank in “ICT Services exports”

Television households will continue to grow at over 5% till 2025, driven by connected TVs
which could cross 40 mn by 2025 and DD Free Dish could cross 50 mn.

TRAI has recently published its recommendations on improving the ease of doing business
in the telecom and broadcasting sector. Some of the recommendations being:

a) A user-friendly, transparent and responsive digital single window system based portal
should be established. The portal should be enabled with new digital technologies for
achieving end-to-end interdepartmental online processes.

b) Each Ministry should establish a standing EoDB Committee to regularly review, simplify
and update the existing processes and ensure ease of doing business as an on-going
activity.

c) MIB, DoT, DOS, MeitY and other agencies should specify stage-wise timelines for all the
processes including initial as well as additional permissions, which should be mentioned in
the respective Guidelines/ policy and updated in the Citizen Charter.

d) The Government may consider and grant ‘Infrastructure Status’ to ‘Broadcasting and
Cable Services Sector’.

e) WPC should charge the spectrum royalty fee for temporary uplinking of live events on a
pro-rata basis for the actual number of days of the event.
Between 2017 and 2021, Doordarshan and All India Radio across both News and General
Infotainment have added a cumulative of more than 15 Mn Digital Subscribers on YouTube
alone, to reach a current digital subscriber base of 1.73 Crores (17.3 Mn).

MeitY aims to have a ‘tectonic shift’ in digital strategy to harness the opportunity to create
an economic value add of USD 800 bn by the year 2024 and USD 1 tn by the year 2025
through right digital interventions.

India jumps 6 ranks, from 67 in 2021 to 61 in 2022 in Network Readiness Index.

14. Mining

The Mining industry in India is one of the core industries of the economy. It provides basic
raw materials to many important industries.

India is the world’s second-largest coal producer and the 5th largest country in terms of coal
deposits.

The estimated value of mineral production for the period 2022-23 is INR 100,709 cr.

India Targets 1.3 bn Ton Coal Production by FY25 and 1.5 BT bn Ton by 2030.

India has become the world’s second largest producer as well as consumer of steel. During
the financial year 2020-21, the total finished steel consumption in the country was 96.2 mn
Tonnes and is expected to reach about 160 mn Tonnes (MT) by 2024-25 and about 250 MT
by 2030-31.

India is home to 1,533 operating mines and produces 95 minerals, which includes 4 fuels,
10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building and other
materials).

Based on the geological mapping of the country, an area of 571,000 sq. km, out of a total of
3.1 mn sq. km. has been demarcated as an Obvious Geological Potential (OGP) area,
where the geological potential for the occurrence of mineral deposits is higher

India has the richest deposits of coal in the world. The total estimated reserves of coal in
2020 were 344.02 bn tonnes, an addition of 17.53 bn tonnes over 2019 in the
corresponding period.

Metals sector engages 11.49 lakhs of people consisting of 7.06 % of the total employment
share
15. Oil and Gas

The Oil and Gas industry in India is set for a sea change with recent developmental
ambitions of the Government of India – 175 GW of installed capacity of renewable energy
by 2022, the aim to achieve 100 smart cities mission, 10% reduction of oil and gas import
dependence by 2022 and provision of clean cooking fuels.

India is the third-largest consumer of fuel in the world but will soon reach the top as the per
capita consumption in the country is on the rise.

India is currently using only 6% of the world’s primary energy and the per capita
consumption of energy is still one-third of the global average.

The estimated conventional hydrocarbon resources in 26 sedimentary basins stood at 41.87

bn tonnes (oil and oil equivalent of gas), an enormous increase of about 49% in comparison
to the earlier estimate of 28.08 bn tonnes.

India is the second-largest refiner in Asia after China. It is emerging as a refinery hub with
refining capacity exceeding demand. * The country’s refinery capacity has increased to
247.57 MTPA.

By 2023-24, India is going to be 20% blending ethanol in our petrol products. Government
promoting use of ethanol produced from sugarcane and food grains under EBP
Programme.

India’s oil demand is expected to increase by 40% to 6.7 mb/day by 2030 and further to 8.3
mb/day in 2050 from 4.7 mb/day in 2021.

India’s gas demand is expected to almost double to reach 115 BCM by 2030 and 170 BCM
by 2050.

16. Pharmaceuticals
India is the 4th largest Asian medical devices market.

The Pharmaceutical industry in India is the 3 rd largest in the world in terms of volume
and14th largest in terms of value. The Pharma sector currently contributes to around 1.32%
of the country’s GDP.

The Indian medical device market share in the global market is estimated to be 1.65%.

The current market size of the medical devices sector in India is estimated to be USD 11 Bn
and its share in the global medical device market is estimated to be 1.5%.

The Indian pharmaceutical industry includes a network of 3,000 drug companies and 10,500
manufacturing units. It is projected to reach a value of US$ 130 billion by 2030.

Indian medicines are preferred worldwide, thereby rightly making the country the “Pharmacy
of the World”.

India is the largest supplier of generic medicines. It manufactures about 60,000 different
generic brands across 60 therapeutic categories and accounts for 20% of the global supply
of generics.

India accounts for about 60% of global vaccine production.

17. Ports and Shipping

India comprises a significant size maritime sector with 12 Major and 200+ Non-Major Ports
situated along its 7500 km long coastline and a vast network of navigable waterways.

The total cargo handling capacity of Indian ports is about 2400 mn tonnes per annum
(MTPA).

Ports in India handle approximately 95% (by volume) and 68% (by value) of India’s external
trade.

India is one of the world's top 5 ship recycling countries and holds a 30% share in the global
ship recycling market.

India ranks 18th in the World’s Shipping Tonnage.

India has 12 Major ports and about 200 non major ports.
Under Maritime India Summit 2021, 486 MoUs were signed for Maritime India Summit 2021
by 22 Maritime Ports/Agencies/Authorities for USD 47.02 bn across different subsectors.

India has become the fourth country in the world to have its independent Regional
Navigation Satellite System (IRNSS).

India has a merchant fleet of 1491 seagoing ships with total capacity of 13 Mn GT.

18. Railways

The Indian Railways is the largest rail network in Asia and the world’s second-largest under
one management.

India has the fourth-largest railway system in the world, behind only the US, Russia and
China.

The Indian rail network has 123,542 km of total tracks over a 67,415 km route and about
7,300 stations.

The railways run close to 13,523 passenger trains and 9,146 freight trains daily on its
network.

Indian Railways is the single largest employer in India and the eighth largest in the world;
employing close to 1.3 Mn people.

The Indian Railways aims to be the driver of India’s economic growth and development by
being safe, financially viable and environmentally friendly. The focus to achieve this goal is
through the resolution of key concerns such as passenger experience, zero fatality, cost,
sustainability.

Under MAKE IN INDIA initiative, As per DPIIT orders on public procurement: More than
95% of Electric Locomotive components to be sourced indigenously.

As of Feb 2023, 85% of the total Broad-Gauge network has been electrified. With this,
Indian Railways has completely electrified 6 zonal railways and is rapidly progressing
towards its target of 100% electrification and becoming the largest green railway network in
the world.

As of March 2023, 12 Vande Bharat Express and 4 Tejas Express services are being
operated by Indian Railway.
19. Renewable Energy

India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro),
4th in Wind Power capacity & 4th in Solar Power capacity (as per REN21 Renewables 2022
Global Status Report).

India is among the top three nations in the world which are leading the global renewable
energy growth.

India targets 50% cumulative electric power installed capacity from non-fossil fuel-based
energy resources by 2030.

India will account for about 25% of global energy demand growth from 2020-40.

Solar capacity increased 197% in the last 5 years from around 21,651 MW to 64,380 MW.

India stands at 4th position in the world in terms of installed RE capacity, 5th in solar and
4th in wind in terms of installed capacity.

The installed solar energy capacity stands at 64.38 GW as of 28th February 2023.

India is the 3rd largest market in the world for new solar photovoltaics (PV) capacity (as per
REN21 Renewables 2022 Global Status Report).

India has achieved the target of 42.53% of its installed electricity capacity from non-fossil
energy sources by December 2022. The country’s installed Renewable Energy (RE)
capacity on 31.12.2022 stands at 167.75 GW while its nuclear energy based installed
electricity capacity stands at 6.78 GW.

In the last 7 years, over USD 70 bn investment has been made in renewable energy in
India.

20. Roads and Highways

India has the second largest road network in the world of about 63.32 lakh km.

The implementation agencies of the Ministry of Road Transport and Highways include:

○ National Highways Authority of India

○ State/Union Territories Public Works Departments
○ National Highway and Infrastructure Development Corporation Limited
 ○ Border Roads Organization
○ Indian Academy of Highway Engineers (IAHE)

21. Space

India’s space program stands out as one of the most cost-effective in the world. India has
earned worldwide recognition for launching lunar probes, building satellites, ferrying foreign
satellites up and has even succeeded in reaching Mars.

India has two operational launch vehicles: Geosynchronous Satellite Launch Vehicle
(GSLV) and Polar Satellite Launch Vehicle (PSLV). The number of launches undertaken by
Indian Space Research Organisation (ISRO) during the last eight years i.e. from 2015 to
2022 is as follows:

○ 2015: 5 launches (4 PSLV & 1 GSLV)

○ 2016: 9 launches (6 PSLV, 1 GSLV, 1 Scramjet Engine TD & 1 RLV TD)
○ 2017: 5 launches (3 PSLV & 2 GSLV)
○ 2018: 7 launches (4 PSLV & 3 GSLV)
○ 2019: 6 launches (5 PSLV & 1 GSLV)
○ 2020: 2 launches (2 PSLV)
○ 2021: 2 launches (1 PSLV & 1 GSLV)
○ 2022: 5 launches (5 PSLV)

The Department of Space is in the process of establishing a predictable, forward-looking,

enabling regulatory regime for space activities in the country, through a comprehensive,
well-defined policy for the entire gamut of such activities.

22. Textiles and Garments

The Textile industry in India is one of the largest in the world with a large raw material base
and manufacturing strength across the value chain.

India is the 2nd largest producer of MMF Fibre. India is the 3rd largest* exporter of Textiles
& Apparel in the world.

India is the 6th largest producer of Technical Textiles with a 6% Global Share (12% CAGR),
the largest producer of cotton & jute in the world.
India is:

○ The largest producers, consumers and exporters of cotton in the World.

○ The largest producer of jute in the world.
○ The second-largest producer of silk in the world with the production of
34,903 MTs.
○ The second-largest producer of manmade fibres.

India has a share of 4.6% of the global trade in textiles and apparel, and its exports stood at
a significant 10.5% in 2021-22.

As of April 2022, power looms accounted for approximately 58.4% of India's total cloth
production, with the country having 385,596 of them.

The industry contributes to 7% of industrial output in value terms, 2% of India’s GDP and
12% of the country’s export earnings.

The share of textile, apparel and handicrafts in India’s total exports was 10.62% in 2021-22.

Four International Expos – Indian Handwoven and Home textiles Sourcing were participated
by Handloom Export Promotion Council in different countries on virtual mode during March
2021 at Australia & New Zealand; USA & Canada; Japan and Spain, France & Italy.

Cotton cultivation has been increased by 5% to 125.02 lakh hectare as against 119.10 lakh
hectare during last year in 2022.

The Textile industry in India is one of the second largest employment providers in the
country. The sector provides employment to 35.23 lakh persons engaged on about 28.23
lakh handlooms.

The domestic apparel & textile industry in India contributes 2.3% to the country’s GDP, 7%
of industry output in value terms.

23. Thermal Power

India ranks 4th in Wind Power capacity and Solar Power capacity.*
All India installed capacity in 2029-30 is estimated to be 8,17,254 MW which includes
2,66,911 MW Coal, 25,080 MW Gas, 71,128 MW Hydro, 18,980 MW Nuclear and 4,35,155
MW Renewable Energy Sources.

India to have 500 GW of non-fossil based electricity installed capacity by 2030.

24. Tourism and Hospitality

The Tourism and Hospitality industry in India is one of the largest service industries.
Tourism is an integral pillar of the Make in India programme.

Tourism and Hospitality sector is one of the largest employment generating sectors in India.

India is the 8th largest country in terms of contribution to travel & tourism GDP.

India is ranked 10th out of the top 46 countries in the World in the Medical Tourism Index
FY21.

The travel industry in India is expected to increase to USD 125 Bn by FY27 from its
estimated worth of USD 75 Bn in FY20.

The World Heritage List has 38 sites inscribed which include 30 cultural, 7 natural and 1
mixed category site. There are 3686 monuments/sites under the protection of the
Archaeological Survey of India (ASI).

India is estimated to contribute 250 Bn USD GDP from Tourism, 137 mn jobs in the Tourism
sector, 56 bn USD in Foreign Exchange Earnings and 25 mn foreign arrivals are expected
to be achieved by 2030.

By 2029, the Indian tourism sector is likely to grow at 6.7% per annum and achieve 9.2% of
GDP with USD 488 bn
25. Wellness
India is one of the pioneers in the alternative system of medicine and has an unparalleled
heritage represented by its ancient and age-old traditional treatment methods, such as
Ayurveda, Yoga, Unani, Siddha and Homoeopathy

India is a biodiversity rich country and as per the Botanical Survey of India estimation, more
than 8,000 species of medicinal plants are found in the country.

The Ministry of AYUSH was formed in November 2014, to overlook the optimal
development and proliferation of the AYUSH systems of health care .

The market size of Ayush industry is USD 18.1 bn in 2020 whereas it was USD 2.85 bn (in
2014-15), with a 17% growth.

The market size of the AYUSH industry in India has witnessed a quantum jump from over
USD 3 bn in 2014 to USD 18 bn in 2021, clocking a phenomenal annual growth of 75%.

Government has set a target to increase the number of Pradhan Mantri Bhartiya
Janaushadhi Kendras to 10000 by the end of CY 2023.

As per the new Govt. Policy 100% FDI is permitted in all the above sectors,
except for space (100%), defence (100%) and news media (26%).16 17

MAJOR INITIATIVES OF THE MAKING INDIA PROGRAMME

1. Invest India cell: An investor facilitation cell set up by the government

will act as the first reference point for guiding foreign investors on all
aspects of regulatory and policy issues and to assist them in obtaining
regulatory clearances.

2. Consolidated services and faster security clearances: All central

government services are being integrated with an e-Biz single window
online portal while states have been advised to introduce self-certification.
The ministry of home affairs have been asked to give all security
clearances to investment proposals within 3 months.

3. Dedicated portal for business queries: A dedicated cell has been

created to answer queries from business entities through a newly created
web portal ( http://www.makeinindia.com). The back-end support team of
the cell would answer specific queries within 72 hours.

4. Easing policies and laws: A vast number of defence items have been
de-licensed and the validity of industrial licence has been extended to three
years.

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5. Interactions with the users/visitors: A proactive approach will be

deployed to track visitors for their geographical location, interest and real
time user behaviour. Visitors registered on the website or raising queries
will be followed up with relevant information and newsletter.

6. The Companies (Amendment) Act, 2015 has been passed to remove

requirements of minimum paid-up capital and common seal for companies.
It also simplifies a number of other associated regulatory requirements. It
also simplifies a number of other regulatory requirements.

7. An Investor Facilitation Cell has been created in „Invest India‟ to

guide, assist and handhold investors during the entire life-cycle of the
business.

8. The Department of Industrial Policy and Promotion has also set up

Japan Plus and Korea Plus. They are special management teams to
facilitate and fast track investment proposals from Japan and Korea
respectively.

9. Protecting Minority Investors: Greater disclosure of conflicts of interest

is now required by board members, increasing the remedies available in
case of prejudicial related-party transactions. Additional safeguards have
been put for shareholders of privately held companies
 MAJOR BOTTLENECKS IN MAKE IN INDIA CAMPAIGN

According to the survey, following bottlenecks have been identified by the

respondents which may impede growth and hamper the implementation of
Make in India initiative.

Land Acquisition-- 93% of the respondents have said that the current
laws make acquisition costly as well as tedious. A robust Land Acquisition
policy which would make acquisition much easier along with an attractive
R&R package is essential for investment in infrastructure and
manufacturing.

Labour Laws-- 89% of the units have responded that India‟s labour laws
are rigid and inflexible that needs to be addressed. Progressive labour laws
would create more job opportunities in the market and would contribute
towards the growth of the manufacturing sector.

Multiple Taxation-- 80% of the respondents opine that there is a need for
simplification of tax laws and earliest implementation of GST to remove
multiple taxation and to rationalise the tax system.

Companies Act 2013-- About 41% of the respondents said that the
Companies act in its current form is detrimental for all the companies. The
Act of 2013 needs to be scrapped instead of making any attempt to modify
it and a fresh act in the spirit of corporate governance should be drafted.

Poor Governance-- 37% of the respondents said that poor governance

may impede growth in the economy. They believe that good governance is
essential for manufacturing sector growth and for the success of Make in
India initiative. The government must fast track all pending cases of
corruption.

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Police Raj--24% of the respondents also said that there is an urgent need
to drastically overhaul the Police Raj to make it people friendly .Police is
the most important arm of the Government which interact s with the
common man directly and we need to define.

DATA ANALYSIS AND INTERPRETATION

(Survey here)

CONCLUSION

Make In India 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 major objective behind the initiative is to
focus on job creation and skill enhancement in 25 sectors of the economy.
The initiative also aims at high quality standards and minimising the impact
on the environment . The initiative hopes to attract capital and technological
investment in India.

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There is a laudable attempt to reduce red tape, enhance foreign direct

investment limits, prune labour laws and environmental clearance
processes, and in general to speed bureaucratic processes up. Some
sectors like information technology, automobile-components,
pharmaceuticals, etc, are globally quite competitive. Some sectors, such as
defence manufacturing, food processing, and electronics are not
competitive. Some are reasonably competitive like electrical machinery,
textiles and leather. Make in India policy, which aims to turn India into a
"global manufacturing hub". Ignoring rhetoric, the demographics of India
are all about a young, under-skilled workforce.

Let‟s hope that the Make in India initiative will be a great success. Make in
India will help the Indian economy to come out of the shadow of recession.
Over dependence on service sector is suicidal and we may hope Make in
India will break this inhibition that India cannot become manufacturing
power house competing China.

References

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for 'zero defect' Make in India products". The Hindu Business Line. 29
December 2014. Retrieved 27 February 2015
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6. "Look East, Link West, says PM Modi at Make in India launch".
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