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December 16, 2016

Make In India - Important Details you should Know

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Make In India

Overview
  • The background to launch 'Make in India' programme.
  • The programme was a initiative of the Department of Industrial Policy and Promotion (DIPP). 
  • The Public Private Partnership as the hallmark of the programme. 
  • The aim of the programme. 
  • The 25 key sectors indentified under it.
  • The role played by NSDA. 
  • Number of challenges faced by this programme. 
  • Same programme launched by China. 
  • Results of this programme in Indian industry.
The government will have to encourage high-tech imports, invest in the research and development sector so that its knowledge base can expand. Research and development will go a long way in boosting India's economy. The government needs to motivate the people to contribute their share to the 'Make in India' campaign. It is only with the collaborative efforts of the people and government that India can secure the title of a global manufacturing hub.


In 2013, the much hyped emerging market bubble had burst and the growth rate had fallen to its lowest in the decade. The promise of the BRICS nation had faded and India was tagged as one of the 'fragile five'. At that time, India was in a severe economic crisis. The global investors were debating whether the investment in India was an opportunity or a risk. The 'Make in India' programme was launched amidst this crisis situation by Prime Minister Narendra Modi on 25th September, 2014, with an aim to transform India into a global design and manufacturing hub.

The initiative was simultaneously launched in all state capitals and in several Indian Embassies. It is a part of a wider set of nation building initiatives and aims to attract the top investors across the world to invest in India. The 'Make in India' programme was a result of initiatives of the Department of Industrial Policy and Promotion (DIPP) and is a collaborative effort of different depai tinents and ministries. To begin with, DIPP invited participation from Union ministries, secretaries to the Government of India, State Governments, industry leaders and various knowledge patterns to discuss the severe economic crisis India was going through. This was followed by national level workshops on sector specific industries in December 2014.

These workshops brought secretaries to Government of India and industry leaders together in order to draw for an action plan that aimed at raising the contribution of manufacturing sector to 25% of the GDP by 2020. The resultant plan was presented to the Prime Minister, Union Ministers, industry leaders, and associations. The Public Private Partnership is the hallmark of the 'Make in India' campaign. `Make in India' programme aimed at a campaign different from the obsolete statistics-laden newspaper advertisements. The logo of the programme is a striding lion made of cogs which symbolise manufacturing, strength and national pride. The programme wanted to infuse confidence among the global investors, citizens and potential investors in India's capabilities. A framework for the vast amount of technical information on 25 sectors of industry was created. The government wanted to keep the local and global investor community updated about the latest developments, opportunities and reforms etc via use of social media. 

DIPP worked with highly specialised agencies to build new infrastructure which included a help desk and a mobile-first website that packed a wide array of information into a simple and sleek menu. The mobile website ensured that all the details to be furnished to the users were presented in a well-organised pattern on the website. The facts, figures, policies, initiatives and sector-specific contact details related to all the 25 sectors were made available on the website. This effort ensured transparency on the part of the government. It was aimed to instil public faith in the 'Make in India' initiative.

An eight member team dedicated to handle the investors' queries will be formed. The response time of this team will be 48 hours and it will address all the key issues including labour, skill development and infrastructure. The 25 key sectors identified under the 'Make in India' initiative include automobile, automobile components, aviation, biotechnology, chemicals, construction, defence manufacturing, electrical machinery, electronic systems, food processing, IT and BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textiles and garments, thermal power, tourism and hospitality, wellness.

Although India boasts of rich natural resources, plenty of skilled labour, it still low on the ease of doing business. The 'Make in India' programme aims at doing away with the delayed regulatory and procedural clearances. The government plans to give time bound clearances to the project through a single online portal. The time bound clearances from all the regulatory authorities will create a conducive environment for the business. Besides, the government is taking into consideration the skill mapping and manpower demand for specific sectors. This will ensure that right kind of training is given to people across the sectors in order to boost their employability.

The National Skill Development Authority (NSDA) is working on creating a Labour Market Information System. This will be helpful for the industry to source its manpower requirement. The validity of the industrial license under the programme will be extended beyond three years. The campaign aims at parting with the archaic laws, which have become synonymous with the country's business environment.

The FDI caps will be raised in a controlled manner and the red tape restrictions in the decision-making process will be done away with. The government also intends the develop industrial corridors and smart cities, create world class infrastructure with state-of-the-art technology and high-speed communication. Better infrastructure will give a major push to the `Make in India' initiative. Industry experts and analysts have given a thumbs up to the 'Make in India' campaign. But there are a number of challenges that the government needs to overcome in order to make this programme a success in real terms. India needs to be ready in real terms to tackle elements that adversely affect the competiveness of manufacturing. Special tax concessions needed to be given to the organisations and countries which are ready to set their establishments within the country. Although this will reduce the government's income earned through taxes, it will contribute a great deal in enhancing the ease of doing businesses in India.

China's 'Made in China' programme was launched the same day when India's `Make in India' programme was launched. This was done by China to retain its manufacturing prowess.

This means that India's 'Make in India' campaign will be under a constant comparison with China's 'Made in China' campaign. India will have to continuously evolve itself in order to outpace China's supremacy. Besides, the country will have to address the issue of skill deficit by bridging the gap between the theoretical education and practical industry knowledge.

The Government of India celebrated the first 'Make in India week starting from 13th February, 2016 in Mumbai. The 'Make in India' week was attended by 2500 international and 800 domestic, foreign and government delegations from 68 countries and business teams from 72 countries. Seventeen Indian states have also exhibited their stalls at the Expo. DIPP has announced that it has received Rs. 15.2 lakh crore worth of investment commitments and investment inquiries of worth Rs. 1.5 lakh crore 30% of the investment commitments and inquiries came from foreign players. Maharashtra state bagged the maximum number of investment commitments worth Rs. 8 lakh crores.

According to financial analysts, India's Foreign Direct Investment (FDI) has increased by 40% since the announcement of the programme. Companies like Xiaomi, Huawei and FOXCONN (manufacturer of i-Phones) are all set to open their manufacturing units in India. Lenovo has recently announced that it has started manufacturing of Motorola smart phone in its manufacturing plant in Chennai. Oppo, Fiat, Airbus and Hitachi are some other countries that have actively, showed interest in the 'Make in India' initiative.

Difficult Words with Meanings
  • Hub the effective centre of an activity, region or network
  • Collaborative involving or done by, several groups of people working together
  • Obsolete no longer used because something new has been invested
  • Laden full of something (here-statistics)
  • Striding walking with one long step
  • Archaic old and no longer used
  • Prowess skill or expertise in a particular activity or field
  • Outpace to rise or improve faster that somebody or something
  • Deficit an excess of expenditure or liabilities over income or assets in a given period.
shared by Nisheeta Mirchandani 
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