Make in India: Transforming India into a Global Manufacturing Hub

Launched on September 25, 2014, by Prime Minister Narendra Modi, the “Make in India” initiative aims to transform India into a global manufacturing hub. This ambitious campaign seeks to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure. It addresses key economic challenges and unlocks the country’s potential by promoting a robust manufacturing sector.

Make in India: Catalyzing Manufacturing Growth and Economic Prosperity

PROGRAM

The Make in India initiative was launched by Prime Minister Narendra Modi in September 2014 as part of a series of nation-building efforts. The goal was to turn India into a global hub for design and manufacturing. This initiative came at a critical time. By 2013, the excitement around emerging markets had faded, and India’s growth rate had dropped to its lowest point in ten years. The BRICS nations (Brazil, Russia, India, China, and South Africa) were no longer seen as promising, and India was labeled as one of the ‘Fragile Five’.

Global investors were unsure if India, the world’s largest democracy, was a risk or an opportunity. India’s 1.2 billion citizens were wondering if their country was too big to succeed or too big to fail. The country was on the edge of a serious economic crisis and needed a significant boost.

PROCESS

Make in India was launched by Prime Minister 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 It represents a comprehensive and unprecedented overhaul of outdated processes and policies. Most importantly, it represents a complete change of the government’s mindset – a shift from issuing authority to business partner, in keeping with Prime Minister’s tenet of ‘Minimum Government, Maximum Governance’.

PLAN

To start a movement, you need a strategy that inspires, empowers and enables in equal measure. Make in India needed a different kind of campaign: instead of the typical statistics-laden newspaper advertisements, this exercise required messaging that was informative, well-packaged and most importantly, credible. It had to (a) inspire confidence in India’s capabilities amongst potential partners abroad, the Indian business community and citizens at large; (b) provide a framework for a vast amount of technical information on 25 industry sectors; and (c) reach out to a vast local and global audience via social media and constantly keep them updated about opportunities, reforms, etc.

The Department for Promotion of Industry and Internal Trade (DPIIT) worked with a group of highly specialised agencies to build brand new infrastructure, including a dedicated help desk and a mobile-first website that packed a wide array of information into a simple and sleek menu. Designed primarily for mobile screens, the site’s architecture ensured that exhaustive levels of detail are neatly tucked away so as not to overwhelm the user. 25 sector brochures were also developed – contents included key facts and figures, policies and initiatives and sector-specific contact details, all of which was made available in print and on the website.

PARTNERSHIPS

The Make in India initiative has been built on layers of a collaborative effort. DPIIT initiated this process by inviting participation from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners. Next, a National Workshop on sector specific industries in December 2014 brought Secretaries to the Government of India and industry leaders together to debate and formulate an action plan for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP by 2020. This plan was presented to the Prime Minister, Union Ministers, industry associations and industry leaders by the Secretaries to the Union Government and the Chief Secretary, Maharashtra on behalf of state governments.

These exercises resulted in a road map for the single largest manufacturing initiative undertaken by a nation in recent history. They also demonstrated the transformational power of public-private partnership, and have become a hallmark of the Make in India initiative. This collaborative model has also been successfully extended to include India’s global partners, as evidenced by the recent in-depth interactions between India and the United States of America.

PROGRESS

In a short space of time, the obsolete and obstructive frameworks of the past have been dismantled and replaced with a transparent and user-friendly system. This is helping drive investment, fostering innovation, developing skills, protecting Intellectual Property (IP) and building best-in-class manufacturing infrastructure. The most striking indicator of progress is the unprecedented opening of key sectors – including railways, defence, insurance and medical devices – to substantially higher levels of Foreign Direct Investment.

The ministry has engaged with the World Bank group to identify areas of improvement in line with World Bank’s ‘doing business’ methodology. Several workshops with Ministries and State governments have been conducted by the Department for Promotion of Industry & Internal Trade (DPIIT) and World Bank for Business Reforms Action Plan.

An Investor Facilitation Cell (IFC) dedicated for the Make in India campaign was formed in September 2014 with an objective to assist investors in seeking regulatory approvals, hand-holding services through the pre-investment phase, execution and after-care support.

The Indian embassies and consulates proactively disseminate information on the potential for investment in the identified sectors. DPIIT has set up a special management team to facilitate and fast track investment proposals from Japan. The team known as ‘Japan Plus’ was operationalized in October 2014. Similarly, ‘Korea Plus’, launched in June 2016, facilitates fast track investment proposals from South Korea and offers holistic support to Korean companies wishing to enter the Indian market.

Various sectors have been opened-up for FDI like defence manufacturing, railways, space, single brand retail, etc. Also, for ease of doing business, the regulatory policies have been relaxed to facilitate more investments.

Across various regions of the country; six industrial corridors are being developed. Industrial Cities will also come up along these corridors.

Today, India’s credibility is stronger than ever. There is visible momentum, energy and optimism. Make in India is opening investment doors. Multiple enterprises are adopting its mantra. The world’s largest democracy is well on its way to becoming the world’s most powerful economy.

Objectives of the Make in India Initiative

Economic Growth: Accelerate the growth of the manufacturing sector to contribute significantly to the GDP.
Employment Generation: Create millions of job opportunities, especially for the youth.
Skill Development: Enhance skill levels in the workforce through training and educational initiatives.
Fostering Innovation: Encourage innovation and research in manufacturing technologies.
Boosting Export: Increase the export of manufactured goods, reducing the trade deficit.
Foreign Direct Investment (FDI): Attract substantial FDI by improving ease of doing business.

Key Sectors under Make in India

The initiative targets 25 key sectors for growth and development:

Automobiles
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

Achievements and Impact

Economic Indicators

Since its inception, the Make in India initiative has significantly impacted various economic indicators:

FDI Inflows: India witnessed a record FDI inflow, with sectors like services, computer software and hardware, and telecommunications attracting substantial investments.
GDP Contribution: The manufacturing sector’s contribution to GDP has shown an upward trend, bolstering overall economic growth.

Employment Generation

The initiative has created numerous job opportunities in various sectors, notably in manufacturing, IT, and services, contributing to a significant reduction in unemployment rates.

Skill Development Programs

Several skill development programs and partnerships with educational institutions have been launched to equip the workforce with necessary skills, fostering a competent and industry-ready workforce.

Infrastructure Development

Major infrastructure projects, including the development of industrial corridors, smart cities, and upgraded transportation networks, have been undertaken to support the manufacturing sector.

Innovation and Research

Investment in R&D has increased, leading to innovation in manufacturing processes, adoption of advanced technologies like IoT, AI, and robotics, and fostering a culture of continuous improvement.

Challenges and the Way Forward

Challenges

Despite its success, the Make in India initiative faces several challenges:

Regulatory Hurdles: Complex regulatory processes and bureaucratic red tape can deter investors.
Infrastructure Bottlenecks: Inadequate infrastructure in certain regions hinders smooth operations.
Skill Gap: The mismatch between the skills possessed by the workforce and the skills required by the industry needs addressing.

The Way Forward

To overcome these challenges, the government and stakeholders must focus on:

Streamlining Regulations: Simplifying regulatory processes to make them more investor-friendly.
Infrastructure Investment: Continuing to invest in and upgrade infrastructure to meet the needs of a growing manufacturing sector.
Bridging the Skill Gap: Enhancing skill development programs to ensure the workforce is equipped with relevant, industry-specific skills.

Conclusion

The Make in India initiative has laid a robust foundation for the country’s economic growth by revitalizing the manufacturing sector. With continued focus on overcoming challenges and fostering a conducive environment for investment and innovation, India is well on its way to becoming a global manufacturing powerhouse.

Top 20 FAQs about the Make in India Initiative

1. What is the Make in India initiative?

Answer: The Make in India initiative is a government program launched in September 2014 to transform India into a global hub for manufacturing and design. It aims to boost the manufacturing sector, create jobs, and attract foreign investment.

2. Who launched the Make in India initiative?

Answer: Prime Minister Narendra Modi launched the Make in India initiative.

3. When was the Make in India initiative launched?

Answer: The Make in India initiative was launched on September 25, 2014.

4. What are the main objectives of Make in India?

Answer: The main objectives are to enhance the manufacturing sector’s growth, generate employment, boost skill development, encourage innovation, increase exports, and attract foreign direct investment (FDI).

5. Which sectors are targeted by Make in India?

Answer: The initiative targets 25 sectors, including Automobiles, Biotechnology, Chemicals, Defence Manufacturing, Electrical Machinery, Electronic Systems, Food Processing, IT and BPM, Pharmaceuticals, Renewable Energy, and Textiles and Garments.

6. How does Make in India aim to attract foreign investment?

Answer: Make in India aims to attract foreign investment by improving ease of doing business, simplifying regulatory processes, and offering incentives for foreign companies to set up manufacturing units in India.

7. What impact has Make in India had on FDI inflows?

Answer: Since its launch, Make in India has significantly increased FDI inflows, with substantial investments in sectors like services, computer software and hardware, and telecommunications.

8. How does Make in India contribute to job creation?

Answer: The initiative creates job opportunities by boosting the manufacturing sector and related industries, which in turn generates employment in various fields such as production, services, and infrastructure.

9. What measures has the government taken to support Make in India?

Answer: The government has implemented various measures, including policy reforms, infrastructure development, skill development programs, and incentives for investors to support the Make in India initiative.

10. What is the significance of Make in India for the Indian economy?

Answer: Make in India is significant for the Indian economy as it aims to enhance the manufacturing sector’s contribution to GDP, create jobs, boost exports, and attract foreign investment, thereby driving overall economic growth.

11. How does Make in India promote innovation?

Answer: Make in India promotes innovation by encouraging research and development (R&D) in manufacturing technologies, fostering a culture of continuous improvement, and supporting startups and entrepreneurs.

12. What are the challenges faced by the Make in India initiative?

Answer: Challenges include regulatory hurdles, inadequate infrastructure in some regions, and a skill gap between the workforce’s current abilities and industry requirements.

13. How is the government addressing regulatory hurdles under Make in India?

Answer: The government is addressing regulatory hurdles by simplifying processes, reducing bureaucratic red tape, and creating a more investor-friendly business environment.

14. What infrastructure projects are being developed under Make in India?

Answer: Major infrastructure projects include the development of industrial corridors, smart cities, upgraded transportation networks, and modern manufacturing facilities.

15. How does Make in India support skill development?

Answer: Make in India supports skill development through various training programs, partnerships with educational institutions, and initiatives aimed at enhancing the workforce’s skills to meet industry demands.

16. What role does the private sector play in Make in India?

Answer: The private sector plays a crucial role in Make in India by investing in manufacturing, participating in skill development programs, and contributing to innovation and R&D.

17. How does Make in India aim to boost exports?

Answer: Make in India aims to boost exports by enhancing the quality and competitiveness of Indian-made products, promoting them in global markets, and supporting exporters through various incentives and policy measures.

18. What are the benefits of Make in India for small and medium enterprises (SMEs)?

Answer: Benefits for SMEs include increased opportunities for growth, access to new markets, incentives for manufacturing, and support for innovation and skill development.

19. How does Make in India address environmental sustainability?

Answer: Make in India promotes environmental sustainability by encouraging the adoption of green technologies, renewable energy, and sustainable manufacturing practices.

20. What is the future outlook for Make in India?

Answer: The future outlook for Make in India is positive, with continued government support, ongoing infrastructure development, and increasing investment expected to drive the initiative’s success and contribute to India’s economic growth.