Make In India – The New Indian Scheme 2023

Theme:

Narendra Modi, who within a matter of months, launched the ‘Make in India’ campaign to facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best-in-class manufacturing infrastructure.

Make in India’ recognizes ‘ease of doing business’ because the most essential element to sell entrepreneurship. A range of initiatives have already been undertaken to ease the business environment. The goal is to de-license and de-modify the enterprise in the course of the whole lifecycle.

Achievements of the ‘Make in India’ program:

• With the launch of Make in India, rules and policies are simplified. Now it is much easier to start a company in India. That means Red tape is reduced.
• India ranked 63rd out of 190 countries in the last World Bank’s Ease of Doing Business Index.
• Make in India program attracted Foreign Direct Investment (FDI) to India. FDI Equity inflow in Manufacturing Sectors has increased by 76% in FY 2021-22 (USD 21.34 billion) compared to the previous FY 2020-21 (USD 12.09 billion).
• The India Cellular & Electronics Association (ICEA) in 2018 stated that due to the manufacturing of domestic mobile handsets and components, the country has saved a whopping INR 3 lakh crore rupees of possible outflow in the last four years.
• This money was saved as the domestically manufactured and assembled handsets replaced the import of completely built units (CBUs). This also provided employment opportunities to approximately 4.5 lakh people.

• India has emerged as the second-largest mobile phone manufacturer in the world with a 126% jump in production from the financial year 2021-2022, shows government data.
• The Make in India program has pushed Self-reliance in the defence sector. As of 2021, India’s defence and aerospace
  manufacturing market has increased to worth Rs 85,000 crore with a private investment of Rs 18,000 crore. Our defence exports increased to Rs 5,711 crore in 2020-21.
• India had come a long way in the Global Innovation Index (GII) from the 81st rank in 2015 to the 40th rank in 2022.
• There is a boom of startups in India after launching Make in India. As of 2022, India has more than 100 unicorns (startups with a US$1 billion valuation or above).
• Several big multinational companies started their manufacturing units in India.

New Infrastructure:

• The availability of modern and facilitating infrastructure is a very important requirement for the growth of the industry. The government intends to develop industrial corridors and smart cities to provide infrastructure based on state-of-the-art technology with modern high-speed communication and integrated logistic arrangements.
• Existing infrastructure is to be strengthened through the upgradation of infrastructure in industrial clusters. Innovation and research activities are supported through a fast-paced registration system and accordingly, the infrastructure of the Intellectual Property Rights registration set-up has been upgraded. The requirement of skills for the industry is to be identified and accordingly, development of the workforce is to be taken up.

New Sectors:

• ‘Make in India’ has identified 25 sectors in manufacturing, infrastructure and service activities and detailed information is being shared through interactive web-portal and professionally developed brochures.
• FDI has been opened up in Defence Production, Construction and Railway infrastructure in a big way.

New Mindset:

• The industry is accustomed to seeing Government as a regulator. ‘Make in India’ intends to change this by bringing a paradigm shift in how Government interacts with industry.
• The Government will partner with industry in the economic development of the country. The approach will be that of a facilitator and not a regulator.

Sectoral-Specific Achievements of Make in India:

• Aerospace & Defence – Indigenous defence products have been unveiled, the Defence Procurement Procedure was amended.
• Aviation – There was a 5 times increase in FDI, the National Civil Aviation Policy was introduced to boost regional air connectivity, 160 airports, and 18 greenfields airports were approved, and GAGAN was launched as well.
• Biotechnology – First indigenously developed Rotavirus vaccine was launched, 30 bio incubators and biotech parks are supported, and India’s first Public-Private Partnership agreement was announced between the Indian Council of Medical Research and Sun Pharma.
• Automotive – There was a 1.7 times increase in the automobile industry; a major investment by global players such as Ford Motors, Mercedes-Benz, and Suzuki Motors was observed.
• Food Processing – Nine mega food parks were operationalized during 2014-2018, eighty-three cold chain projects were operationalized, and an app called Nivesh Sandhu was launched in 2017.
• Gems and Jewellery – There was a 4.6 times increase in FDI in the period of 2014-2018, Jewellery Park at Mumbai is being developed.
• Leather and Leather Products – A program called Indian Footwear, Leather & Accessories Development Programme was launched in 2017, and approximately 4.44 lakh people have been trained.
• Media and Entertainment – There was a 1.8 times increase in FDI in Information & Broadcasting, the Print Media Advertisement Policy, 2016 was launched, National Film Heritage Mission was launched.
• Railways – The first semi-high-speed train called Gatimaan Express and a luxury train called ‘Vande Bharat‘ was launched, and an investment of INR 15,000 crore was achieved through Public-Private Partnership.
• Tourism – Schemes such as Swadesh Darshan and PRASAD were launched.

Challenges:

• Though improved, the ease of doing business in India is not up to the mark. Private firms, especially larger firms are complaining about regulatory obstacles.
• There is a shortage of skilled manpower in India. Though the situation has improved, still there is a gap between the demand and supply of skilled manpower.
• Though many industries are planned to be set up and inaugurated, many of those projects are not implemented yet.
• Many workers in India’s manufacturing companies are getting very low wages.

Conclusion:

The ‘Make in India’ program is a success in creating a favourable environment for manufacturing companies. Its effect on the Indian economy is clearly visible. The program is helping India in achieving self-sufficiency.