MAKE IN INDIA Index CERTIFICATE ACKOWNLEDGEMENT INTRODUCTION MAKE IN INDIA LOGO SECTORS WHY MAKE IN INDIA INITIATIVES SCHEMES OBJECTIVIES MAKE IN INDIA PROGRESS ADVANTGES CHALLENGES CASE STUDY SURVEY SURVEY ANALYSIS CONCLUSION BIBLOGRAPHY GLOSSARY INTRODUCTION The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. Devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation. By 2013, the much-hyped emerging markets bubble had burst, and India’s growth rate had fallen to its lowest level in a decade. The promise of the BRICS Nations (Brazil, Russia, India, China and South Africa) had faded, and India was tagged as one of the so-called ‘Fragile Five’. Global investors debated whether the world’s largest democracy was a risk or an opportunity. India’s 1.2 billion citizens questioned whether India was too big to succeed or too big to fail. India was on the brink of severe economic failure, desperately in need of a big push. The government wants to revive the lagging manufacturing sector and spur the growth of the economy. The GOI also intends to encourage businesses from abroad into investing in the country and also manufacture here, by improving the country’s ‘Ease of Doing Business’ index. The long-term vision is to gradually develop India into a global manufacturing hub, and also boost employment opportunities in the country. MAKE IN INDIA LOGO The Make in India logo is a visual representation of the initiative, and it consists of three elements: a lion, the Indian tricolour, and the gear. The lion symbolises strength and resilience, embodying the spirit of the initiative and the country. The Indian tricolour is a reminder of the nation’s pride and ambitions, while the gear reflects India’s industrial advancement. The logo has been designed to be both timeless and contemporary, and it is instantly recognisable as a symbol of the Make in India initiative. With its combination of elements, the logo is a powerful visual representation of the progress and potential of the nation. It effectively portrays the vision of the mission and its commitment to driving India’s economic growth and development. The Government of India owns the “Make in India” logo, which is protected by copyright. It is available for use by organisations and companies associated with the “Make in India” initiative or involved in the manufacturing sector in India. This includes companies that are involved in producing goods and services, as well as those involved in R&D and innovation in the manufacturing sector. The logo is usable in its original form, or it can be adapted for an organization or company’s branding. For example, companies can use the logo to promote their products, services, and activities related to the Make in India initiative, such as to increase awareness of their commitment to the initiative or boost their presence in the Indian market. In addition, they can use the logo to showcase their progress in the Make in India programme and its goals. The logo can also signify a company’s commitment to the initiative and highlight India’s manufacturing capabilities and potential.There are certain guidelines for using the “Make in India” symbol. These guidelines are intended to ensure that the logo is used correctly and is not misused or abused. The following are the guidelines for using the logo: The logo should not be: Used in any way that implies endorsement of any product, service, or activity by the Government of India or any agency of the Government. altered or modified in any way. Used in a manner that is deceptive or misleading. Used in a manner that is not in compliance with applicable laws. Printed on any materials that are offensive, obscene, or defamatory. Used for any commercial or promotional purposes. MAKE IN INDIA – FOCUS ON 25 SECTORS The 25 focus sectors and there 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? There are multiple reasons why the government has chosen to focus on manufacturing. The key ones are discussed below: 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. WHY MAKE IN INDIAINITIATIVES 1. For the first time, the sectors of railways, insurance, defense, and medical devices have been opened up for more Foreign Direct Investment (FDI). 2. 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. 3. In construction and specified rail infrastructure projects, 100% FDI under the automatic route has been permitted. 4. 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 for giving services to investors in all phases such as the pre-investment phase, execution, and also after delivery services. 5. 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. 6. The Shram Suvidha Portal, eBiz portal, etc. have been launched. The eBiz portal offers singlewindow access to eleven government services connected with starting a business in India. 7. 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. 8. Other reforms include licensing process, timebound 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. 9. 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. The government has launched plans to create 5 industrial corridors. They are underway. These corridors are spread across the length and breadth of India, with a strategic focus on inclusive development which will augment industrialization and urbanization in a planned manner. The corridors are: 1. Delhi-Mumbai Industrial Corridor (DMIC) 2. Amritsar-Kolkata Industrial Corridor (AKIC) 3. Bengaluru-Mumbai Economic Corridor (BMEC) 4. Chennai-Bengaluru Industrial Corridor (CBIC) 5. Vizag-Chennai Industrial Corridor (VCIC) MAKE IN INDIASCHEMES Several schemes were launched to support the Make in India programme. These schemes are discussed below: Skill India This mission aims to skill 10 million in India annually in various sectors. Make in India to turn into a reality, there is a need to upskill the large human resource 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, 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 portled 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 1. To transform India into a global design and manufacturing hub. 2. To introduce new initiatives for the promotion of foreign direct investment 3. To implement intellectual property rights. 4. To develop the nation’s manufacturing sector. 5. To boost the confidence of investors and manufacturers to build and invest in India. 6. To improve India’s rank on the Ease of Doing Business index. 7. To eliminate the hassles of laws and regulations in the bureaucratic process of business. 8. To promote job creation and innovation in the limits of the country. 9. To make government transparent and accountable in its working. 10. To encourage the avenues of skill development. 11. To improve the global competitiveness of the Indian manufacturing sector. 12. To promote the sustainability of growth. 13. Raise in manufacturing sector growth to 12-14% per year. 14. Create 100 million additional jobs in the manufacturing sector by 2022. 15. Increase in the manufacturing sector’s share in the GDP to 25% by 2022. 16. Creating required skill sets among the urban poor and the rural migrants to foster inclusive growth. 17. A rise in the domestic value addition and technological depth in the manufacturing sector. 18. Having an environmentally-sustainable growth. 19. Augmenting the global competitiveness of the Indian manufacturing sector. MAKE IN INDIA-PROGRESS There have been several milestones attributed to the Make in India scheme. Some of the prominent ones are listed below: 1. The introduction of the Goods and Services Tax (GST) has eased the tax procedural system for businesses. The GST has been a fillip to the Make in India campaign. 2. Digitization in the country has gained momentum. Taxation, company incorporation, and many other processes have been made online easing the overall process and improving efficiency. This has upped India’s rank in the EoDB index. 3. The new insolvency code namely, the Insolvency and Bankruptcy Code 2016 integrated all laws and rules relating to insolvency into a single legislation. This has taken the bankruptcy code of India on par with global standards. 4. Due to schemes of financial inclusion such as the PMJDY, as of May 2019, 356 million new bank accounts were opened. 5. FDI liberalization has helped India’s EoDB index to be favourable. Larger FDI inflows will create jobs, income, and investments. 6. Infrastructure and connectivity have received major push through schemes like Bharatmala and Sagarmala, as well as various railway infrastructure development schemes. 7. BharatNet – this is a telecom infrastructure provider set up by the GOI to enhance digital networks in the rural areas of the country. This is perhaps the world’s largest rural broadband project. 8. India is ranked four in the world in terms of its capacity to harness power from winds and ranked number 6 in the world in harnessing solar power. Overall, India is ranked fifth in the world in installed renewable energy capacity. MAKE IN INDIA ADVANTAGES The Make in India campaign has had several positive developments for the country. Below are some more benefits that have been derived from this mission. 1. Generating employment opportunities. 2. Increasing the GDP by expanding economic growth. 3. When FDI inflows become more, the rupee will be strengthened. 4. Small manufacturers will get a thrust, particularly when investors from abroad invest in them. 5. When countries invest in India, they will also bring with them the latest technologies in various fields. 6. Due to the various initiatives taken under the Mission, India has moved up the ranks in the EoDB index. 7. Setting up manufacturing centres and factories in rural areas will foster the development of these areas as well. MAKE IN CHALLENGES INDIA- Even though the campaign has seen success in some quarters, there have been criticisms as well. There are also many challenges facing the country if she is to achieve the lofty targets set by the establishment. Some of the criticisms are laid out below. 1. India has about 60% of cultivable land. The thrust on manufacturing is said to affect agriculture negatively. It can even cause a permanent disruption of arable land. 2. It is also believed that the rapid industrialization (even with the thrust on “going green”) can lead to a depletion of natural resources. 3. A fallout of inviting large-scale FDI is that local farmers and small entrepreneurs may not be able to face the competition from international players. 4. The campaign, with all its focus on manufacturing, can cause pollution and environmental side-effects. 5. There are serious lacunae in the physical infrastructure facilities in the country. For the campaign to be successful, it is necessary to build up the infrastructure available in the country and also reduce problems like corruption at the lowest levels. Here, India can take lessons from China, which has dramatically improved its share of global manufacturing from 2.6% in the 1990s to 24.9% in 2013. China rapidly developed its physical infrastructure like railways, roadways, power, airports, etc. CASE STUDY Patanjali a success story One of the make in India company’s Patanjali Ayurveda was instituted by Baba Ramdev and Acharya Balkrishna in the year 2006. It is the fastest growing FMCG (Fast Moving consumer goods) Company in India. In last 5 years it has grown 10 times in terms of revenue. They have 4000 distributors, 10,000 stores, 100 mega- Marts. Patanjali has gone beyond this and have tied up with Future Group and Reliance Retail. The company has more than 350 products from soap to Toothpaste and from Oats to Health Drinks. at present Patanjali Ghee is expected to touch INR 12 Billion in 2016 , it is giving nightmare to competitors. Though it has started as Ayurvedic medicine manufacturing unit, it has excellent research and development facilities, modern technology. Recently it has launched an application which will help customer to locate retail outlet and also an application for online ordering Patanjali products. The Company is planning to increase its production capacity for which it’s raising 1000 crore in loans to set up new manufacturing plants. It’s mounting on the wave of success and seeping away everything which is stumbling block in its path. Patanjali products are everywhere from local Baniya to online stores like Amazon. The product quality is the best; the prices competitive and distribution channel envied by major giants in the trade. CONCLUSION The Make in India project stands at the forefront of India's endeavor to position itself as a global manufacturing hub, representing a pivotal and ambitious initiative with far-reaching implications. Since its inception, the project has exhibited commendable progress in bolstering the nation's industrial capabilities, fostering a culture of innovation, and elevating its stature on the global economic stage. The initiative's impact is evident in the significant strides made across various industries, with increased emphasis on domestic production and reduced dependence on imports. This shift not only contributes to economic self-sufficiency but also enhances India's standing in the international trade arena. However, the transformative journey of Make in India is not without its share of challenges. Persistent obstacles, including the imperative for ongoing infrastructure development, the streamlining of regulatory processes, and targeted interventions in specific sectors, underscore the need for sustained and multifaceted efforts. Addressing these challenges is imperative to unlock the full potential of the initiative and ensure its long-term success. Crucially, the success of Make in India hinges on the unwavering commitment of the government, necessitating proactive adaptations of policies to evolving economic landscapes and global dynamics. Collaborative efforts with industry stakeholders, encompassing both large corporations and burgeoning enterprises, further amplify the potential for success. As Make in India progresses, it holds the promise of not only generating substantial employment opportunities but also fueling robust economic growth. Beyond the quantitative aspects, the initiative has the transformative power to reshape international perceptions of India, positioning the nation as a formidable and competitive player in the global manufacturing arena. Looking ahead, a strategic and inclusive approach is paramount to ensure that the project's objectives align seamlessly with evolving global dynamics. This approach, coupled with a focus on sustainability and inclusivity, will contribute to India's comprehensive economic development and solidify its position as a key player in the international manufacturing landscape. The continued evolution of Make in India represents a beacon of progress, embodying the nation's commitment to sustainable growth and global relevance in the 21st century Bibliography https://www. makeinindia.co m https://www. mea.gov.in https://www.i bef.org glossary