| Name of the scheme | Make in India |
| Date of launching | 25th September 2014 |
| Launched by | PM Narendra Modi |
| Government Ministry | Ministry of Commerce and Industry |
| Make in India website | http://www.makeinindia.com/home/ |
10 years of 'Make in India'
Launched in 2014 to transform India into a global manufacturing hub.
About Make in India
Objective: To facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class
manufacturing infrastructure.
It is based on four pillarsNew Processes: Recognizes ease of doing business as the most important factor to promote entrepreneurship.
New Infrastructure: Provide infrastructure based on state-of-the-art technology.
New Sectors: Identified 27 sectors (under Make in India 2.0) in manufacturing, infrastructure and service activities.
New Mindset: Government shall act as a facilitator and not a regulator
Nodal Agencies:
Department for Promotion of Industry and Internal Trade- Manufacturing
sector
Department of Commerce- Service sector
Impact of Initiative
Foreign Direct Investment (FDI): Attracted FDI inflow of $667.4 billion (2014-24),
an increase of 119% over the preceding decade (2004-14).
Employment: Employment in the manufacturing sector increased from 57 million
in 2017-18 to 64.4 million in 2022-23.
Exports: India’s merchandise exports surpassed $437 billion in FY 2023-24.
Ease of Doing Business: Sharp rise from 142nd rank in 2014 to 63rd rank in 2019
in the World Bank’s Doing Business Report.
Sector-wise Success:
Transportation: E.g. Vande Bharat Express Train
Defence Manufacturing: E.g. INS Vikrant, the country’s first domestically made aircraft carrier
Electronics: Samsung started the World’s Largest Mobile Factory in Noida
Make in India initiative celebrates 10 Years of its launch
‘Sustainable Food Systems and India’s Trade Agreement’
Make In India – Focus on 25 Sectors
The Make in India website also has listed the 25 focus sectors and also furnished all relevant details about these sectors, and related government schemes, including the FDI policies, IPR, etc. The main sectors (27 sectors) covered under this campaign are given below:
Manufacturing Sectors:
- Aerospace and Defence
- Automotive and Auto Components
- Pharmaceuticals and Medical Devices
- Bio-Technology
- Capital Goods
- Textile and Apparels
- Chemicals and Petro chemicals
- Electronics System Design and Manufacturing (ESDM)
- Leather & Footwear
- Food Processing
- Gems and Jewellery
- Shipping
- Railways
- Construction
- New and Renewable Energy
Services Sectors:
- Information Technology & Information Technology enabled Services (IT &ITeS)
- Tourism and Hospitality Services
- Medical Value Travel
- Transport and Logistics Services
- Accounting and Finance Services
- Audio Visual Services
- Legal Services
- Communication Services
- Construction and Related Engineering Services
- Environmental Services
- Financial Services
- Education Services
Why Make in India?
- For the past two decades, India’s growth story seems to have been led by the services sector. This approach paid off in the short-run, and India’s IT and BPO sector saw a huge leap, and India was often dubbed the ‘back office of the world’. However, even though the share of the services sector in the Indian economy rose to 57% in 2013, it contributed to only 28% in the share of employment. So, the manufacturing sector needed to be augmented to boost employment. This is because the services sector currently has low absorption potential considering the demographic dividend in the country.
- Another reason to launch the campaign is the poor condition of manufacturing in India. The share of manufacturing in the overall Indian economy is only about 15%. This is way lower than our neighbours in East Asia. There is an overall trade deficit when it comes to goods. The trade surplus in services hardly covers one-fifth of India’s trade deficit in goods. The services sector alone cannot hope to answer this trade deficit. Manufacturing will have to chip in. The government is hoping to encourage businesses, both Indian and foreign to invest in manufacturing in India, which will help this sector and also generate employment in both skilled and unskilled levels.
- To focus on manufacturing is that no other sector seems to have such a huge multiplier effect on economic growth in a country, according to various studies. The manufacturing sector has larger backward linkages and hence, growth in demand in manufacturing spurs growth in other sectors as well. This generates more jobs, investments, and innovation, and generally leads to a higher standard of living in an economy.
Make in India – Initiatives
- For the first time, the sectors of railways, insurance, defense, and medical devices have been opened up for more Foreign Direct Investment (FDI).
- The maximum limit in FDI in the defense sector under the automatic route has been raised from 49% to 74%. This increase in FDI was announced by Finance Minister Nirmala Sitaraman on May 16, 2020.
- In construction and specified rail infrastructure projects, 100% FDI under the automatic route has been permitted.
- There is an Investor Facilitation Cell that assists investors from the time of their arrival in India to their departure from the country. This was created in 2014 to give services to investors in all phases such as the pre-investment phase, execution, and also after delivery services.
- The government has taken steps to improve India’s ‘Ease of Doing Business’ rank. India climbed 23 points in the Ease of Doing Business index to 77th place in 2019, becoming the highest-ranked in South Asia in this index.
- The Shram Suvidha Portal, eBiz portal, etc. have been launched. The eBiz portal offers single-window access to eleven government services connected with starting a business in India.
- Other permits and licenses required to start a business have also been relaxed. Reforms are being undertaken in areas like property registration, payment of taxes, getting power connection, enforcing contracts, and resolving insolvency.
- Other reforms include licensing process, time-bound clearances for applications of foreign investors, automation of processes for registration with the Employees State Insurance Corporation and the Employees Provident Fund Organization, adoption of best practices by states in granting clearances, decreasing the number of documents for exports, and ensuring compliance through peer evaluation, self-certification, etc.
- The government hopes to improve physical infrastructure chiefly through the PPP mode of investment. Ports and airports have seen increased investment. Dedicated freight corridors are also being developed.
Make in India – Schemes
Skill India
This mission aims to skill 10 million in India annually in various sectors. For ‘Make in India’ to turn into a reality, there is a need to upskill the large human resources available. This is important because the percentage of formally skilled workforce in India is only 2% of the population.
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.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
The mission envisages financial inclusion to ensure access to financial services, namely banking savings & deposit accounts, remittances, credit, insurance, and pension in an affordable manner. Click the linked article to know more about Pradhan Mantri Jan Dhan Yojana (PMJDY).
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.
Sagarmala
This scheme aims at developing ports and promoting port-led development in the country. Read more on the Sagarmala Project in the linked article.
International Solar Alliance (ISA)
The ISA is an alliance of 121 countries, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn. This is India’s initiative aimed at promoting research and development in solar technologies and formulating policies in that regard.
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.
Make in India – Objectives
- Raise in manufacturing sector growth to 12-14% per year.
- Create 100 million additional jobs in the manufacturing sector by 2022.
- Increase in the manufacturing sector’s share in the GDP to 25% by 2022.
- Creating required skill sets among the urban poor and the rural migrants to foster inclusive growth.
- A rise in the domestic value addition and technological depth in the manufacturing sector.
- Having an environmentally sustainable growth.
- Augmenting the global competitiveness of the Indian manufacturing sector.
FAQs
How Successful is Make in India?
The Make in India campaign has seen successes and drawbacks. A major success was reported from the mobile phone manufacturing sector, which saw 120 units being set up. This led to the replacement of the import of completely built units (CBUs) by domestically assembled and manufactured units. The country saved Rs 3 lakh crore of possible outflow from 2014. The import of mobile phones is expected to come down.
What are the Challenges of Make in India?
Some of the challenges in this mission are creating a healthy environment for business, lack of research and development, skills development and up-gradation, creating labour-intensive technology, increasing the competitiveness of goods manufactured in India, etc.