Make in India is an initiative programme of the Government of India to encourage multinational and domestic companies to manufacture their products in India.
The major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skill enhancement.
The government has set an ambitious target of increasing the contribution of manufacturing output to 25% of Gross Domestic Product (GDP) by 2025, from 16% currently.
The 25 sectors identified includes Automobiles, Chemicals, IT, Pharmaceuticals, Textiles, Ports, Aviation, Leather, Tourism & Hospitality, Wellness, Railways, Design Manufacturing, Renewable Energy, Mining, Bio-technology and Electronics.
The version 1.0 included steps like relaxation in foreign equity caps in various sectors, application for licenses was made available online and the validity of licenses was increased to three years.
Since the start of the Make in India initiative. Regulations and approval processes have been eased; 100% foreign direct investment (FDI) have been allowed in all 25 sectors, except Space (74%), Defence (49%) and news media (26%); various schemes have been started to support start-ups, and other pro-industry policy measures are expected in the labour intensive sectors where India has been lagging behind.
The government is now all set to launch version 2.0 of this high-profile initiative.
While the first level focused on easing processed to help businesses, Part two is aimed at turning it into ‘a people’s movement ‘ on the lines of the Swadeshi movement.
An analysis of the past 12 months shows that the Make in India initiative is indeed working.
The Government of India has received investment proposals of over Rs 1, 10,000 crore (US$ 16.56 billion) in the last 12 months from a host of companies across industries. India has become one of the most attractive destinations for investments in the manufacturing sector.
With a hard focus on the manufacturing sector, the government is trying to upgrade the skills of its workforce.
Taking a cue from countries such as Japan and Germany, known for their top-quality manufacturing. The Government is starting an investor outreach programme with several countries to bring global best practices in India so as to achieve world standards and be a part of the global supply chain.
The government recently launched make in India Mittelstand, a business support programme for 30 ‘high-potential’ German companies to invest in India.
Global manufacturing is in turmoil with the low cost model of last two decades coming under pressure. China’s competitiveness is eroding. Brazil seen as one of the most competitive 10 years ago is becoming a high cost country.
This turmoil provides a unique opportunity for India to become among the top 3 manufacturing players in the world.
Make in India has changed the mind sets-both inside and outside the country.
Various states were mobilised and the results are showing. For instance, a ‘Make in Northeast’, initiative has been planned. The Uttar Pradesh government has secured investment deals valued at Rs 5,000 crore for setting up mobile manufacturing units in the state and Maharashtra has cleared land allotment for 130 industrial units across the state with an investment of Rs 6,266 crore.
The Automobile Industry is an important sector in the ‘Make in India’ initiative, and has been identified as one of the 25 thrust sectors outlined for growth.
Several auto majors have rolled out their plans to be part of the initiative.