The Road Ahead for Make In India

• 25 sectors have been selected under Make in India to focus on.

• FDI has been liberalised in some key sectors including Defence
Manufacturing, Food Processing, Telecommunications, Agriculture,
Pharmaceuticals, Civil Aviation, Space, Private Security Agencies, Railways,
Insurance and Pensions and Medical Devices.
• Several reforms are being undertaken to enhance ease of doing business
and enhance FDI.
• Industrial corridors and smart cities are being built at a fast pace.
• Intellectual Property Rights (IPRs) registrations are being accelerated and
measures are being taken to cater to the training needs of the skilled
workforce.
Fresh Energy to Make In India- Boost to Startups

• From a call-to-action to becoming a platform for national

development, the campaign has made its presence felt across the
globe.

• we import products from countries like Germany, which manufactures

technologically advanced products, but lately many Indian companies
have come up with products which are posing a tough competition. If
we see where our real estate industry is moving, technology will play
a key role which will automatically be beneficial.
Ease in Govt Clearances

• The implementation of Goods and Services Tax (GST) have made the
industry as a whole much more transparent and accountable.

Rajesh Uttamchandani, director, Syska Group- "Now the processes

have been simplified such as obtaining licenses and clearances.
Further streamlining has encouraged more companies to participate
in the Make in India. Many companies have set up several
manufacturing units throughout the country that produce electrical
equipment and products such as bulbs, industrial lights, wires and
others."
• Kishan Jain, director, Goldmedal Electricals- "The digitization initiative
that is part of Make in India has made processes much more
transparent and easier to implement. At the ground level, we have
noticed many companies and customers respond positively to the
Made in India tag which was not always the case earlier. The
government's promotion of LED lights and electrification of all villages
have given a much needed push to electrical and lighting products. As
a result, we are now noticing several new, smaller players being
encouraged to join the industry."
Sustainable Development by Make In India
• The 'zero defect zero effect' phrase which came with Make in India
campaign has shown positive impact on MSMEs of India. Many
companies are manufacturing goods with 'zero defects' and ensuring
that the goods have 'zero effect' on the environment.

Hence sustainable development in the country is progressing by

imposing high-quality manufacturing standards while minimizing
environmental and ecological impact.
 Hurdles to Make In India
• Land Acquisition- Current laws make land acquisition costly and tedious.
• Labour Laws- Current laws are rigid and inflexible.
• Poor Governance- poor governance may impede growth in the economy.
• Police Raj- there is an urgent need to drastically overhaul the Police Raj to
make it people friendly
• Operational problems- shortage of power, increased cost of doing
business, shortage of water, high power rates, lack of connectivity and
transportation facilities, poor access to finance by smaller firms,
Infrastructural constraints, bureaucratic hurdles, unskilled workforce and
limited R&D.
Hurdles to Make In India- Biggest hurdle
• Private Investment missing- One of the key factors holding India back is the
subdued private investment in the economy. The data from the Centre for
Monitoring Indian Economy (CMIE) show that announcement of new
investment projects declined by 38.4 per cent. The private sector is needed
to create jobs, income, spending power, better capacity utilization rates
and so on.
• The Modi government in its recent budget 2019 revised the system of
importing duty-free capital goods to give boost to its ‘Make in India (MII)
programme. Further, inputs for manufacture and export have been
introduced, along with introduction of single point of approval, under
section 65 of the Customs Act. Moreover, a stable and business-friendly
GST structure is likely to help attract investments. The government needs
to maintain its focus on infrastructure development and resolve the NPA
issue with utmost priority.
The next 5 years-
S. No. Mode of Expansion Percentage of firms
1 Organic Growth 100%
2 Targeting other Markets 74%
3 Expand Globally(FDIs & FIIs) 62%
4 Location Expansion 60%
5 Win a Government Contract 54%
6 Mergers and Acquisitions 51%
7 Expand to the Internet 40%
8 Diversification 34%
9 License your product 28%
10 Form an alliance with a related company 26%
11 Offering your Business as a Franchise or business opportunity 12%
 An increase in FDI
• Countries with major participation in the FDI-
• USA- Amazon, Citibank, Coca-Cola, Ford India, Google, American Express, Pepsico,
Hewlett Packard, IBM, JP Morgan Chase, Adobe Systems Incorporated, Apple Inc.,
Microsoft Corporation, Cognizant, Oracle.
• Japan- Hitachi, Mitsubishi, Toshiba, Canon, Toyota, Yamaha, Panasonic, Honda, Sony,
Suzuki.
• UAE- Emaar, DP World, Abu Dhabi’s National Petroleum Construction Company, Abu
Dhabi National Energy Company, Drake and Scull International.
• Germany- Krupp AG & Demag, Bosch, Siemens, Bayer, Daimler-Benz, BMW,
Volkswagen, SAP, Siemens AG, and Merck.
• France- Rafale, Saint-Gobain, Capgemini, PSA Groups, Schneider Electric,
Renault.