Make in India Initiative: Empowering India’s Rise as a Global Manufacturing Leader

Why was the Make in India Initiative designed?

“Make in India” is an initiative launched by the Government of India in September 2014 to promote manufacturing and attract foreign direct investment (FDI) into the country. The program aims to transform India into a global manufacturing hub by encouraging both domestic and international companies to manufacture their products within the country.

Make in India was designed specifically to increase the share of the manufacturing sector in India’s GDP while creating job opportunities. This initiative by the Government will help with various reforms to improve the ease of doing business in India by simplifying regulatory processes, reducing bureaucratic hurdles, and promoting a business-friendly environment. The government seeks to attract foreign companies to invest in India’s manufacturing sector by reducing norms in various industries to facilitate foreign investments.

The original list of 25 sectors for Made in India included the following: automotive, aerospace, biotechnology, chemicals, building, defense manufacturing, electronic systems, food processing, IT and BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, space, textiles and apparel, thermal power, tourism and hospitality, urban infrastructure, and wellness. However, the scope has expanded over time.

What is the current status of this initiative?

The ”Make in India” Initiative has already created a strong impact in the form of an improved business environment and economic growth, as follows:

• India is now 1st among the world’s most attractive investment destinations.
• 1st among the world’s fastest-growing economies.
• 1st among 100 countries on the growth, innovation, and leadership index.
• 1st amongst 110 investment destinations polled globally.
• 7th most valued national brand in the world.
• India’s rank jumped 12 positions in the Ease of Doing Business 2016 list by World Bank.
• India moved 16 places in the Global Competitiveness Index 2015-16.
• For the first time, the sectors of railways, insurance, defense, and medical devices have been opened up for more Foreign Direct Investment (FDI).
• 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.
• Additional reforms include the licensing procedure, deadline-driven clearances for foreign investor applications, automation of the Employees State Insurance Corporation and Employees Provident Fund Organization registration processes, state adoption of best practices in clearance granting, reduction of export document count, and assurance of compliance through self-certification, peer review, and other means.
• 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.

Improvements due to Make in India Initiative

Some of the improvements due to Make in India are listed below:

1. Total FDI inflows in the country in FY 22-23 is $ 70.97 Bn and total FDI equity inflows stand at $ 46.03 Bn.
2. India to Witness GDP Growth of 6% To 6.8% In 2023-24.
3. India jumps 79 positions from 142nd (2014) to 63rd (2019) in ‘World Bank’s Ease of Doing Business Ranking 2020’.
4. India climbs to the 40th rank in the Global Innovation Index; a huge leap of 41 places in 7 years.
5. India’s overall exports (Merchandise and Services combined) in FY 2022-23 exhibited a positive growth of 13.84% over FY 2021-22 to achieve $770.18 bn worth of exports.
6. From just 2 mobile phone factories in 2014, India now has become the 2nd largest mobile phone producer in the world.
7. India to become a USD 5 Tn economy by 2025.
8. The population of India is expected to rise from 121.1 Cr to 152.2 Cr during 2011-36 an increase of 25.7% in twenty-five years.
9. Goods and Services Tax (GST), the biggest tax reform since independence, paves the way for a common national market by integrating various indirect taxes.

What are the benefits of this initiative?

There are some benefits of the “Make in India” Initiative. They are listed below:

1. Reduced Imports: The strategy seeks to lessen India’s reliance on imports by encouraging home production. As a result, the economy may become more independent, the trade imbalance may narrow, and the nation’s economic resilience may be reinforced.
2. Skill Development: Manufacturing is prioritized, which calls for a trained labor force. Initiatives for skill development and vocational training are part of Made in India, which makes sure that the workforce has the skills required to meet the demands of the manufacturing industry.
3. Infrastructure Development: The program encourages the construction of infrastructure, including dependable power supplies, transportation networks, and industrial corridors. This boosts general economic development in addition to manufacturing activity.
4. Diversification of Industries: Made in India promotes economic diversification by focusing on a number of industries. This lessens the reliance on a small number of key industries and increases the economy’s ability to withstand changes in the world economy.
5. Technological Advancements: Made in India promotes economic diversification by focusing on a number of industries. This lessens the reliance on a small number of key industries and increases the economy’s ability to withstand changes in the world economy.
6. Promotion of Small and Medium Enterprises (SMEs): Made in India seeks to support the expansion of small and medium-sized businesses by giving them chances to engage in the manufacturing industry and advance the nation’s economy.
7. Enhanced Global Competitiveness: Made in India attempts to raise India’s level of competitiveness in the international arena by drawing in foreign investment and supporting indigenous firms. This may result in higher exports and a stronger position in global markets.

What are the 4 Pillars of Make in India?

1. New Processes: One of the main goals of the Made in India initiative is to improve the ease of doing business by implementing several improvements to the license and approval procedures that have bedeviled India. This pillar’s primary goal is to de-regulate, simplify regulations, and provide a single-window approval process. This pillar, to put it briefly, aims to make doing business easier.
2. New Infrastructure: India has endured a protracted period of inadequate infrastructure. Consequently, this has impacted the manufacturing sector and created a barrier to luring investments. By creating first-rate infrastructure to meet the demands of a contemporary industrial sector and modernizing existing infrastructure, this pillar seeks to solve the issue that India has been dealing with for decades. The objective is to offer contemporary, high-caliber logistical infrastructure.
3. New Sectors: Another goal of Made in India is to support the development of high-tech industries such as aerospace and defense, Industry 4.0, semiconductors, high-tech electronics, cars, electric vehicles, new materials, and so forth. The goal is to concentrate on modernizing and expanding into emerging manufacturing sectors while also advancing the more established manufacturing industries. The Make in India initiative has designated 25 industries as its primary emphasis areas.
4. New Mindset: The goal of the fourth pillar is to restructure the government such that the different ministries are seen as facilitators rather than regulators. The goal of the Made in India initiative is to make it very evident to investors and business owners that this government welcomes business and would work to assist and grow enterprises rather than impose its will on them.

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