Pradhan Mantri Make in India
To promote in-house manufacturing in India and to woo more and more foreign investment in the domestic market, the central govt. launched an initiative which is named as ‘Make in India’. The main force to bring this initiative and implement is none other than the Hon’ble Prime Minister of the nation, Shree Narendra Modi. After coming to power in May 2014, the Indian PM launched this policy on 25thSeptember, 2014. The main aim of the initiative was to replenish the degrading Indian economy which touched very low level in the previous year 2013. This policy was brought into action to make India one of the global forces in the international market and to create a manufacturing hub within the nation.
Aim of the Make in India policy
As the country’s GDP was at the lowest level in recent years, when the UPA govt. left from power, it was high time to take some major initiatives to cope up with the situation and bring country’s economy back to normal. The Make in India scheme aims to grow the domestic manufacturing in all sectors so that the national GDP gets its deserved equilibrium. On an average, about 15 per cent of the country’s GDP is contributed by the domestic manufacturing. The vision of this scheme was to increase this rate to 25 per cent over the next few years. This will also generate new employment opportunities, put India forward in the international market and will also boost the FDI.
Make in India’s grand launch
This policy by the Modi govt. had a grand launch on 25th September, 2014 during a program at the Vigyan Bhawan. CEOs of all leading companies like Tata, Aditya Birla, Wipro, Aditya Birla, ITC, etc. and top entrepreneurs from all across the globe were invited during the launch ceremony. It was reported that more than 3,000 companies from around thirty foreign countries sent their CEOs at the launch of Make in India. PM Narendra Modi who returned from his US trip which was applauded globally headed the launch ceremony of this initiative in the country capital.
Basic working strategy of the initiative
After the fall of Indian economy, it was prime time to bring it back on track and recover the damage already done. So with this initiative, the Modi Government’s first working plan was to project India as a very potential market in international business. This will provide confidence to foreign investors and also inspire the domestic business community and the citizens. Then the next plan was to target the most important sectors and chalk out the entire necessary framework for their growth. A total of 25 sectors were chosen and vast technical information about the current market strategies and future plans were strategized. The next plan was to portray the same to global audience through social media platforms and use its global reach capabilities to promote the scheme. Also the biggest strategy was to project that the government and administration is providing ease of doing business to the investors.
Make In India – 25 selected sectors
After much research and analysis a set of 25 different sectors were picked those would be promoted under this policy.These sectors had more scopes for increased foreign investment as well as improve the manufacturing / productive quality. This would also mean more employment opportunities for these sectors as large productivity and global reach would mean more and more manpower. The sectors which were picked under this policy are:
- Automobile Components
- Defence Manufacturing
- Electrical Machinery
- Electronic systems
- Food Processing
- Information Technology and Business Process Management
- Media and Entertainment
- Oil and Gas
- Ports and Shipping
- Renewable Energy
- Roads and Highways
- Space and Astronomy
- Textiles and Garments
- Thermal Power
- Tourism and Hospitality
Make in India Policy and Rules
Under the Make in India initiative, the central govt. wants maximum increase in production levels of the focused 25 sectors. The prime policy is to facilitate the in-house manufacturing units to expand their business and reach out to the global market. In addition to this, the government’s policy to provide EODB to foreign companies and investors to attract more FDI in the country. Before this Make in India initiative, only 26 % of FDI was sanctioned to the Defence sector, which has been to 49 % under new rules. In the Railways sector also, the FDI has been allowed up to 100 %.
Brochures and website launch
With the launch of the grand initiative, the 25 sectors which were focused had to be promoted exclusively and the key facts and statistics were to be projected to the world. So, 25 separate brochures were made for each sector. These brochures also included the upcoming polities and targets along with contact details of the key players of those sectors which would be essential for ease of doing business. A website was also created with similar facts named http://www.makeinindia.com. The website is simple and sleek but has all detailed information and key facts for every sector. The logo of this initiative is one lion with mechanical designs which is designed by DIPP.
Make in India projects
It’s been almost two and half years of the implementation of the Make in India project. Few targets were achieved, some are yet to achieve. Looking at the progress card of this policy, one thing is very clear that the roar of the lion of the initiative has increased ten folds. Below are some of the key achievementsand improvements in Indian business and economy under the Make in India policy:
- The FDI coming to Indian markets after the launch and implementation of this policy has grown by 37 per cent in the last two and half years.
- An investment of approximately 78 million USD was made by the Spice mobile manufacturing group in Uttar Pradesh and decided to set up a manufacturing hub in the state.
- Hitachi which is another electrical giant of global market set up a manufacturing plant in Chennai and also promised to increase its manpower in India. It has also committed to double the business revenues from this country.
- Samsung announced the production of its smart phone Samsung Z1 from Noida itself and also opened up 10 MSME technical schools in the country.
- An important move by Huawei was taken by opening up a 170 million USD campus in Bangalore for research and development activities. Also it started establishing one manufacturing unit of telecom products in Chennai.
- Xiaomi, which is the leading smart phone manufacturer in Asia set up one manufacturing hub in India and successfully launched Redmi 2 Prime in India within a span of 7 months.
- Lenovo set up a manufacturing plant in Tamil Nadu and started manufacturing Lenovo as well as Motorola smart phones.
- A billion dollar investment from Global Motors to set up an automobile plant in Maharashtra has been done.
- Boeing showed interest in assembling fighter planes for India for defence purposes.
- In Railways sector, one major achievement is a 400 billion INR investment for setting up two different locomotive manufacturing hubs in Bihar.
- Qualcomm which is a global tech giant started one campaign under which it will mentor some hardware companies of India to increase their potential and productivity.
- The PM of Japan visited India and announced investments of 12 billion USD under the Make in India campaign.
- One defence deal with Russia was signed under which a Russian helicopter utilized in Indian Air Force will be totally manufactured in India.
- In the EODB chart prepared by the World Bank, India ranks 130th in the list which has bettered after the implementation of the Make in India project.
Make in India week seminar schedule
A week long seminar was held in Mumbai from 13th Feb, 2016 to 18th Feb, 2016 which became a global stage to showcase the manufacturing and designing potential of the participating sectors under the Make in India policy. This week long seminar was organized in Mumbai’s MMRDA. An active participation from businessmen and govt. authorities from all over the world took part in this seminar. As per reports, more than 2,500 members from foreign countries participated in the seminar. In addition to this, most of the states celebrated the week by holding similar seminars in their state. At the closing ceremony, Mr. A Kant, who is the DIPP secretary revealed about the status report of the entire week long seminar which received commitment for investment of more than 240 billion USD.
Make in India registration process
Investors can register for the Make in India initiative and add up to the country’s economic growth. One can register online and make investment query through the portal: http://www.makeinindia.com/query-form. The applicant can register by entering name, e-mail id, contact number, country, sector of interest and the query details for investment. For offline queries and registration process, one may contact the Invest India which is an government agency located in New Delhi which provides advisory and held investors invest in any sector under the Make in India scheme. As per reports, at present the time taken for registering a company in India is 27 day (average), which the Modi govt. aims to deliver in one single day in upcoming years.
Make in India registration fees
There is no specified registration fee for participating under the Make in India policy. One should have the required credentials and skills to promote the initiative in their concerned sector by implementing new innovations and techniques. One may register for Make in India newsletter through their website http://www.makeinindia.com/register to get update of the latest developments of the grand project.
Reasons to invest in Automobile Industry
India is the seventh largest producer of automobile in the world and at the same time it is the 4th largest automobile market by volume. It contributes to 7 per cent of the entire nation’s GDP. It is a good sector for investors since over the next 20 years; India is going to be a big global automotive triumvirate.
India is a big global market for automotives and thus the potential of this sector can’t be ignored. Here, there is both a potential for the product from manufacturing perspective as well as there is a lot of potential in terms of in house sales.
Reasons to invest in Aviation Industry
- India is the ninth largest civil aviation market due to the larger size of population in the country.
- In year 2013 only, there were more than 163 million passengers in India
- The size of international passengers to and from India is expected to be 60 million by year 2017
- India has about 85 international airlines that connect almost 40 countries around the world
- India is expected to be the third largest aviation market by year 2020 and would thus require more than 800 aircrafts in house.
Reasons to invest in Biotechnology Industry
- India is one of the best destinations for biotechnology research both because of the manpower available in India and its long history of medicinal research in older streams like Ayurveda.
- The country boasts of the 2nd highest number of USFDA approved biotechnological plants, only second to USA
- India has already adopted the product patent regime much earlier in the year 2005
- Indian government is putting a lot of funds on increasing infrastructural support for the industry and the entire input from government’s end for biotechnological industry is expected to be USD 3.7 billion between year 2012 and 2017.
- As a matter of fact, India is already the largest product of recombinant Hepatitis B Vaccine and has a lot of potential to be one of the biggest producer of transgenic rice and other engineered food crops and vegetables.
Reasons to invest in Chemicals Industry
- India is the sixth largest producer of chemicals in the world and ranks sixth in Asia in terms of output.
- The chemical industry is one of the key components of the Indian economy with its GDP share being 2.11 per cent.
- The country is third largest producer of agro chemicals in the world and ranks third in terms of polymer consumption
- India’s geographical proximity to the middle-east countries, which are petrochemical producers, makes it an ideal place for chemical production destination.
- Apart from all of these, the government support for chemical industry in terms of infrastructure and R&D is appreciable and that makes India a good choice for investment in Chemical industry.
Reasons to invest in Construction Industry
Construction industry has been booming at a rapid pace in India for the last two decades or so. This is one sector, which is every growing and has a lot of potential in the coming future. Here are few of the points why investment would be a good choice in construction industry in India.
- An overall investment of USD 1,000 Billion is expected in this sector until 2017.
- This sector is the favorite of government and thus it has provided lot of ease to the investors in this segment.
- At present only, the construction section accounts for more than 10 per cent of the country’s Gross Domestic Product
- Over the next 20 years, analysts believe that a total of USD 650 would be required for construction in urban infrastructure.
Reasons to invest in Defence Manufacturing
At present, India is one of the major importers of defence materials and this is why there is a vast scope in investment in this segment. If the doors of foreign investment are opened in defence sector, it would not only help the foreign investors but also boost the indigenous production in India.
The government has made all provisions to ensure that a conducive eco-system of suppliers is built domestically. The government is committed on promoting indigenization, self reliance, up gradation of technology and developing capabilities for exports in defense sector and this is something that would call for more and more investors.
Reasons to invest in Electrical Machinery
India has been trying to build a self reliant and effective power system and is trying to make power reach all the households. A total of 88.5 GW has to be added till 2017 and 93 GW to be added by 2022. This is a huge opportunity and could not be fulfilled with bringing in foreign direct investment.
In house, the Indian manufacturers are now different from what they were in the past and are now becoming more and more competitive in context of manufacturing, product designs and testing facilities. We can see further a large pool of advancements in technologies and in human resources.
On the other hand, India foresees itself as a direct exporter of electrical machinery to its neighboring countries and thus there is a huge gap that has to be filled in terms of infrastructure and research and development.
Reasons to invest in Renewable Energy sector
India ranks fifth in terms of power generation portfolio across the world and it has a power generation capacity of around 245 GW.
Indian, as a country is growing in terms of increasing prosperity, economic growth and growing pace of urbanization. All this is in turn causing a gap between how much power is being produced and how much is going to be required. Thus, there is a huge opportunity in terms of renewable energy sector.
One of the major sources of renewable energy currently being used in India is Hydro-Electricity, however, the costs associated with establishment is high for the government to set up more centers of energy production.
Wind and solar energy in India are still untapped and the entire domain is a void, which needs to be filled with adequate foreign investment. The country has unlimited growth potential in the form of solar photovoltaic industry.
Reasons to invest in Food processing sector
One of the most sustainable and growing sector in any country in times to come is Food Processing. If someone has to ponder over what could be the number one crisis of the world in future, it could be nothing else than food crisis. And in India, with such a huge population with limited resources, the problem is going to be worse.
On a positive side, India has a rich agricultural resource and is the top ranker for certain raw food production like papayas, okra, ginger, chickpea, mangoes, bananas, buffalo meat, goat milk and whole buffalo. On the other hand, India ranks second in product of raw green pea, cow milk, wheat, lentils, tomatoes, tea, cauliflower, gourds, pumpkin, dry onion, ground nut, garlic, potatoes, rice and sugarcane.
With such a diversified and abundant resource base, the country only requires adequate technological infrastructure to become one of the major centers of food processing and thus cater to the world’s food crisis.
Likewise, there are a number of other sectors/industries which are going to be a favorite choice for the investors from abroad and Make in India would only benefit in overall development of the infrastructural strength of the country.
Foreign Direct Investment is something which is not new to India. It draws its origin in India after the liberalization started in year 1991 and since then the country has seen a lot of significant development. Make in India is a step ahead and more focused campaign which would take India from the self sustained economy to an exporting nation.