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Make in India

Make in India is a major government-led initiative aimed at facilitating investment, fostering innovation, enhancing skill development....

Make in India is a major government-led initiative aimed at facilitating investment, fostering innovation, enhancing skill development, protecting intellectual property, and constructing world-class manufacturing infrastructure in India.

What is Make in-India Programme?
  • Launched in 2014, Make in India aims to transform the country into a leading global manufacturing and investment destination.
  • It is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.
  • The initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’.
  • Make In India has substantial accomplishments across 27 sectors under Make in India 2.0 which include strategic sectors of manufacturing and services as well.
Objectives:
  • To attract foreign investment for new industrialisation and develop the already existing industry base in India to surpass that of China.
  • Target of an increase in manufacturing sector growth to 12-14% per annum over the medium term
  • To increase the share of manufacturing sector in the country’s Gross Domestic Product from 16% to 25% by 2022
  • To create 100 million additional jobs by 2022.
  • To promote export-led growth.
Schemes Under Make in India Initiative:
Skill India
  • Skill India’s mission aims to skill at least 10 million individuals in various sectors in India In order to take the Make in India initiative forward to turn into a reality, there is a need to upskill the large human resource available.
  • Its importance increases due to the fact that the percentage of formally skilled workforce in India is only 2% of the population.
Startup India
  • This program was initiated to build an ecosystem that could facilitate the growth of startups, drive sustainable economic growth, and create large-scale employment.
Digital India
  • Digital India initiative was brought in to transform India into a knowledge-based and digitally empowered economy.
  • Digital India is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society.
  • It gave impetus to E-governance initiatives in India for wider sectoral applications with emphasis on citizen-centric services
Pradhan Mantri Jan Dhan Yojana (PMJDY)
  • It was undertaken to ensure financial inclusion and access to financial services, such as banking savings & deposit accounts, remittances, credit, insurance, pension in an affordable manner.
Smart Cities
  • It was brought in to transform and rejuvenate Indian cities.
  • The goal is to create 100 smart cities in India through several sub-initiatives. It was launched in 2015.
  • The cities were given five years to complete the projects under the mission, with the first set of Smart Cities expected to complete in 2021.
AMRUT
  • It is known as the Atal Mission for Rejuvenation and Urban Transformation.
  • This initiative focuses to build basic public amenities and making 500 cities in India more livable and inclusive.
Swachh Bharat Abhiyan
  • It has been undertook by the government for making India a nation promoting cleaner and basic sanitation and hygiene.
Sagarmala
  • This scheme aims at developing ports and promoting port-led development in the country.
  • It is the flagship programme of the Ministry of Shipping to promote port-led development in the country by exploiting India’s 7,517 km long coastline, 14,500 km of potentially navigable waterways and its strategic location on key international maritime trade routes
International Solar Alliance (ISA)
  • It is an alliance of 121 countries, most of them being sunshine countries, which are those that lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.
  • This initiative will promote research and development in solar technologies and formulate policies in that regard.
AGNII
  • AGNII or Accelerating Growth of New India’s Innovation was launched to achieve the innovation ecosystem in the country by connecting people and assisting in commercializing innovations.
Make in India – Advantages

This campaign has had several positive developments for the country. Below are some more benefits that have been obtain 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 strengthen.
  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 India – Challenges

Even though the campaign has seen success in some quarters, there have been criticisms as well. There are also many challenges as follows:

  1. India has about 60% of cultivable land. The thrust on manufacturing may affect agriculture negatively. It can even cause a permanent disruption of arable land.
  2. It is also believe 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.
Other measures to strengthen the Make in India initiative
  • The reform measures include 
    • Amendments to laws, 
    • Liberalization of guidelines and regulations, in order to reduce unnecessary compliance burden, 
    • Bring down cost and 
    • Enhance the ease of doing business in India. 
    • Burdensome compliances to rules and regulations have reduce through simplification, rationalisation, decriminalisation, and digitisation, making it easier to do business in India. 
  • Labour reforms:
    • Additionally, Labour reforms have brought flexibility in hiring and retrenchment. 
  • Promotion of manufacturing:
    • Steps to promote manufacturing and investments also include reduction in corporate taxes, public procurement orders and Phased Manufacturing Programme.
    • Quality control orders have been introduce to ensure quality in local manufacturing. 
  • Production Linked Incentive (PLI) schemes:
    • As a part of the ‘Make In India’ program, the government introduced Production Linked Incentive (PLI) schemes across 14 key manufacturing sectors in 2020-21 as a big boost to the ‘Make in India’ initiative. This also included a $10-billion incentive scheme to build a semiconductor, display, design ecosystem in India
  • The One-District-One-Product (ODOP) initiative:
    • The aim is to facilitate the promotion and production of indigenous products from each district of the country. By providing a global platform to the artisans and manufacturers. So that to aspire to contribute the socio-economic growth of various regions of the country.
  • Gatishakti‘ programme:
    • The programme will ensure logistical efficiency in business operations through the creation of infrastructure that improves connectivity. 
    • This will enable faster movement of goods and people, enhancing access to markets, hubs, and opportunities, and reducing logistics cost. 
  • State initiatives:
    • In line with the Make in India, individual states too launched their own local initiatives, such as “Make in Odisha“, “Tamil Nadu Global Investors Meet“, “Vibrant Gujarat“, “Happening Haryana“, and “Magnetic Maharashtra“.
What can be the way forward?
  • It is evident that India is not gaining the full potential of the Make in India initiative.
  • Government measures are currently seeing very limited results out of the steps taken by it to deal with the current challenges faced by the Indian economy.
  • The core issues that are plaguing the Indian economy need to be settle before intending to make India a global manufacturing hub.
  • For instance, India is facing an unemployment crisis.
  • To solve this, the government can take steps to make full use of the potential of India’s young labour force.

Also Read : National Investment and Infrastructure Fund 

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