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MAKE IN INDIA (economics project)

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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:
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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:
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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:
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Information Technology & Information Technology enabled Services (IT
&ITeS)
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Tourism and Hospitality Services
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Medical Value Travel
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Transport and Logistics Services
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Accounting and Finance Services
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Audio Visual Services
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Legal Services
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Communication Services
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Construction and Related Engineering Services
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Environmental Services
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Financial Services
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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:
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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.
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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.
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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
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