When a man first starts to imagine his own life, India is the first place he looks for a spot to call his own in the universe. The initiative that shapes this position is “The Make in India Initiative”. It is a lion step in the progress of the Indian economy and brings it to the world best face.
The Make in India project is a government programme designed to help Indian manufacturers and assemblers grow and prosper. Incentivized investments in India’s industrial sector are part of this plan. The 25 areas of the economy are the focus of the programme, which aims to create jobs and improve skills. Export-oriented design and production are the primary goals of this initiative.
Key feature of the Make in India initiative –
- About the Make in India initiative
- Indian economy before & after the Make in India initiative
- Investment status in the Make in India initiative
- Manufacturing status in the Make in India initiative
About the Make in India initiative
The Make in India initiative is a government programme designed to help Indian manufacturers and assemblers grow and prosper. The major goal of the initiative is to enhance industrial growth on the Indian continent by 12- 14% every year, but it has three secondary goals as well. The creation of an extra 100 million manufacturing jobs by 2022 is the second goal of this strategy. In addition, this initiative’s final goal is to guarantee that the manufacturing sector contributes at least 25% more to GDP by 2022, which has been amended to 2025.
Before the period of the make in India concept, the Indian businesses are lacking at a greater level where the ease of doing business in global campaigns and public procurement orders are lacking behind and ultimately degrading the overall economic positions of India. Before the beginning of the initiative, there were particular demands in the industries that included the removal of licence requirement, reduction in the number of stages for approval, the requirement of PAN, driving licence, voting id and various other specifications. All these are related to beginning the businesses that make manufacturing a complex process.
Therefore, all these issues need to be resolved and are resolved under the make in India initiative. The government focused on decreasing the complexity faced by the manufacturing sector and increasing their worth in the market. It can be understood from the revised position of India where India jumped a massive 30 places to 100th in World Bank ease of doing business ranking. It is all because of the implementation of the Make in India initiative that brought a reform in starting a business, construction permits, getting credits, enforcing contracts, resolving insolvency, trading across borders and many others.
Investment status in the Make in India initiative
The make in India initiative acted as a movement that initiated a new life in India’s foreign direct investment history. Then was a total of USD 160 point 79 billion (about 33 percent) of net foreign direct investment in India between April 2014 and March 2017, and this part starts there. A massive inflow of foreign direct investment in the Indian economy brought several opportunities for the manufacturing sector. In 2015-16, the foreign direct investment inflow crossed the 50 billion US dollar mark in one fiscal year, India’s first-ever. It has been identified that this flow is continued until 2017 brought several investments. If the viewpoint of IMF world economic Outlook April 2017 is considered in this situation, then India is the fastest growing economy in majority economies in the world so far.
India is getting foreign direct investment, including defence manufacturing, food processing, telecommunication, agriculture, commerce, civilisations, railways insurance and various other sectors. It is the contribution and difference brought by the make in India initiative before and after its launch. It can be clearly understood that a substantial foreign direct investment is brought in India by utilising this campaign and increasing the flow of money in the manufacturing sector.
Indian economy before & after the Make in India initiative
If there is a comparison between before and after stages of the Indian economy, aerospace and defence sector, the implementation of the Make in India initiative brought a huge difference. In aerospace and defence, the indigenous defence products developed include Aakash surface-to-air missile system, Dhanush artillery gun system, and light combat aircraft.
These are the development after implementing the make in India concept in the aerospace and defence sector. Furthermore, a similar industry faces a sharp increase in export to INR 2059.18 crore in 2015-16 from 1153.35 crore INR in 2013-14. Furthermore, the defence offset policy is streamlined 100% of set claims filed during 2014- 16 against 64% during 2008-2013. It is a considerable difference brought by the make in India concept and ultimately provided benefits to the Indian military airspace and defence.
This development is also seen in the metal and cement industry, where the foreign direct investment raised 5.9 times in the mining sector from 213 million US dollars in 2014 to 1261 million dollars in 2014-17. One more initiative started under the Make in India scheme include the giant blast furnace in India and Kalyani commissioned at SAIL in Burnpur. It is a considerable change brought by the make in India concept after its implementation and acted as modernisation of IISCO steel plant Burnpur to increase the hot metal production capacity.
Manufacturing status in the Make in India initiative
It has been further evaluated that one of the essential factors in Indian manufacturing includes capital goods and automotive. In this sector, the growth registered after implementing the make in India concept is the shift of FDI from 3.98 billion US dollars to 6.86 billion US dollars.
The 15% growth in annual turnover of the auto component sector is also registered where new investors include Isuzu motors, Ford motors, Mercedes-Benz, Suzuki motors and various others. Furthermore, 2.9 lakh people are also trained in automotive skills considering 2014 and 16. Furthermore, the chemical and petroleum industry is also at its boom after implementing this new scheme, where approximately 1 lakh jobs are registered, and 2.8 lakh metric ton is produced in the Assam gas cracker project commissioned.
It is a considerable difference that brought by this initiative and ultimately benefited the Indian economy with a firm hold by focusing on its objective of 5 trillion economies in 2025. The food processing industry also brought seven mega food parks operationalised that created 36000 jobs during the tenure of 2014 and 17, and many more jobs will be provided afterwards during the development of the industry. It can be easily understood that all sector faces a growth in which media and entertainment, MSME, new and renewable energy, oil and gas, pharmaceuticals, power, railways, skill development, textile and apparel, tourism and IT sector have a significant shift that would allow the economic shift in India.
It has been concluded from the comprehensive information that the initiative of making in India acted as an extraordinary opportunity for all the Indian economic factors and provided tremendous benefits to the Indian economy and allied sectors. It helps set a new mark for the Indian economy and the gross domestic production so that the economy can reach and beat the world’s best economy, including France, China, Germany, and various others that questioned the Indian economic potential.
It is the inner development of the Indian continent by working on the loose points and bringing a new opportunity to explore a great vision. It can be understood that “The Make in India campaign has taken off and is backed with skill development. It is going to open new vistas for employment for the youth”.
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