Make in India - Govt Scheme

Make in India is a government of India initiative established in 2014 by Prime Minister Narendra Modi with the goal of boosting domestic manufacturing and attracting foreign investment. This article discusses the Make in India Scheme's aims, programmes and efforts, 25 priority sectors, benefits, problems, and development in depth.

The administration seeks to boost economic development by reviving the country's sagging industrial sector. By boosting the country's 'Ease of Doing Business' ranking, the GOI also hopes to entice foreign enterprises to invest and produce in the nation. The long-term goal is to transform India into a global manufacturing powerhouse while simultaneously increasing job possibilities in the nation.

Make in India Notes – UPSC:-Download PDF Here

The highlights of this scheme are mentioned in the table below:

Name of the scheme	Make in India
Date of launching	25th September 2014
Launched by	PM Narendra Modi
Government Ministry	Ministry of Commerce and Industry
Make in India website	http://www.makeinindia.com/home/

Make in India Logo

The Make in India logo is a lion. It is a lion’s silhouette filled with cogs. This symbolizes manufacturing, national pride, and strength.

Make in India Logo

Make In India – Focus on 25 Sectors

The Make in India website also provides a list of the 25 target industries, as well as all necessary information on these industries and related government programmes, such as FDI rules, intellectual property rights, and so on. The following are the primary sectors (27 in all) covered by this campaign:

Manufacturing Sectors:

1. Aerospace and Defence
2. Automotive and Auto Components
3. Pharmaceuticals and Medical Devices
4. Bio-Technology
5. Capital Goods
6. Textile and Apparels
7. Chemicals and Petro chemicals
8. Electronics System Design and Manufacturing (ESDM)
9. Leather & Footwear
10. Food Processing
11. Gems and Jewellery
12. Shipping
13. Railways
14. Construction
15. New and Renewable Energy

Services Sectors:

16. Information Technology & Information Technology enabled Services (IT &ITeS)
17. Tourism and Hospitality Services
18. Medical Value Travel
19. Transport and Logistics Services
20. Accounting and Finance Services
21. Audio Visual Services
22. Legal Services
23. Communication Services
24. Construction and Related Engineering Services
25. Environmental Services
26. Financial Services
27. Education Services

Why Make in India?

There are multiple reasons why the government has chosen to focus on manufacturing. The key ones are discussed below:

• India's growth over the past two decades appears to have been driven by the service sector. This approach has paid off in the short term, and the IT and BPO sectors in India have taken a huge leap forward and India is often referred to as the 'back office of the world'. However, although the share of the service sector in the Indian economy increased to 57% in 2013, it contributed only 28% of the employment share. Therefore, the manufacturing sector needs to be strengthened to promote employment. Indeed, the service sector currently has low absorption potential given the level of the national demographic dividend.
• Another reason for starting the campaign was the poor manufacturing conditions in India. The share of manufacturing industry in the Indian economy as a whole is only around 15%. It is less than our neighbors in East Asia. There is an overall trade deficit for goods. The services trade surplus barely covers one-fifth of India's goods trade deficit. The service sector alone cannot hope to meet this trade deficit. The government hopes to encourage Indian and foreign companies to invest in the manufacturing sector in India, which will help the sector and also create jobs at both skilled and unskilled levels.
• The emphasis on manufacturing is that no other sector seems to have such a large exponential impact on a country's economic growth, according to various studies. The manufacturing sector has stronger backward linkages and therefore the growth in demand in the manufacturing sector also stimulates growth in other sectors. This creates more jobs, investment and innovation, and often leads to a higher standard of living in an economy.

Make in India – Initiatives

1. For the first time, the railroad, insurance, defense and medical equipment sectors opened up to more foreign direct investment (FDI).
2. The maximum limit for FDI in the defense sector under the automatic channel has increased from 49% to 74%. This increase in FDI was announced by the Minister of Finance Nirmala Sitaraman on May 16, 2020.
3. Within the framework of specific railway infrastructure and construction projects, 100 I under the automatic track have received the authorization.
4. There is an investor support organization that supports investors from the time they arrive in India until they leave the country. This was established in 2014 to provide services to investors at all stages such as pre-investment, execution and also post-delivery services.
5. The government has taken steps to improve India's Ease of Doing Business rating. India rose 23 points in the Ease of Doing Business Index to 77th place in 2019, making it the top-ranked South Asian country in the index.
6. Shram Suvidha Gate, eBiz portal, etc. was launched. The eBiz portal provides one-stop access to 11 start-up related government services in India.
7. Other licenses and permits required to start a business have also been relaxed. Reforms are underway in areas such as property registration, tax payment, electrical connections, contract enforcement and default resolution.
8. Other reforms include licensing process, term authorization for foreign investor applications, automation of registration process with the State Insurance Corporation for Employees and the Insurance Fund. Worker support, adopting Country best practices for licensing, reducing the amount of documentation for exports, and ensuring compliance through peer review, self-certification, etc.
9. The government hopes to improve physical infrastructure mainly through PPP investment. Ports and airports have seen an increase in investment. Dedicated freight corridors are also being developed

The government is planning to build five industrial corridors. They've started. These corridors run the length and width of India, with a strategic focus on inclusive development that will help India's industrialization and urbanisation go more smoothly. The corridors are as follows:

1. Delhi-Mumbai Industrial Corridor (DMIC)
2. Amritsar-Kolkata Industrial Corridor (AKIC)
3. Bengaluru-Mumbai Economic Corridor (BMEC)
4. Chennai-Bengaluru Industrial Corridor (CBIC)
5. Vizag-Chennai Industrial Corridor (VCIC)

Make in India – Schemes

Several schemes were launched to support the Make in India programme. These schemes are discussed below:

Skill India

This project intends to train 10 million people in India each year in a variety of fields. In order for Make in India to become a reality, the huge human resource pool available must be upskilled. This is significant because India's officially skilled workforce accounts for barely 2% of the population.

Startup India

The main idea behind this program is to build an ecosystem that fosters the growth of startups, fosters sustainable economic growth and creates jobs on a large scale.

Digital India

India will be transformed into a knowledge-based and digitally enabled economy as a result of this initiative. Click on the link to learn more about Digital India.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

The envisaged mission is finance to ensure access to financial services, namely savings accounts and bank deposits, remittances, credit, insurance, pensions in a physical legal manner. Click on the linked article to read more about Pradhan Mantri Jan Dhan Yojana (PMJDY).

Smart Cities

This project strives to revitalise and transform Indian cities. Through many sub-initiatives, the objective is to build 100 smart cities in India.

AMRUT

AMRUT is Atal's urban rejuvenation and transformation mission. It aims to build basic public facilities and make 500 Indian cities more livable and inclusive.

Swachh Bharat Abhiyan

This is a project to make India cleaner and more sanitary by promoting basic sanitation and hygiene. Click on the linked article for additional information about the Swachh Bharat Mission.

Sagarmala

This program aims to develop ports and promote domestic port development. Read more about the Sagarmala project in the linked article.

International Solar Alliance (ISA)

The ISA is a group of 121 nations, the majority of which are sun-drenched and sit entirely or partially between the Tropics of Cancer and Capricorn. This is an effort by India aiming at boosting solar technology research and development as well as developing regulations in this area.

AGNII

AGNII or Accelerating the Growth of Innovation in India is newly launched to boost the innovation ecosystem in the country by connecting people and helping to commercialize innovations.

Make in India – Objectives

There are several targets aimed by the Make in India mission. They are:

1. Raise in manufacturing sector growth to 12-14% per year.
2. Create 100 million additional jobs in the manufacturing sector by 2022.
3. Increase in the manufacturing sector’s share in the GDP to 25% by 2022.
4. Creating required skill sets among the urban poor and the rural migrants to foster inclusive growth.
5. A rise in the domestic value addition and technological depth in the manufacturing sector.
6. Having an environmentally-sustainable growth.
7. Augmenting the global competitiveness of the Indian manufacturing sector.

Make in India – Progress

There have been several milestones attributed to the Make in India scheme. Some of the prominent ones are listed below:

• The introduction of goods and taxes on services (GST) mitigates tax procedures for businesses. The GST was faithful to the manufacturer of Indian campaigns.
• The digestivation of the country has gained momentum. Taxes, established and other processes relieved overall online processes and improve efficiency. This was placed the classification of India in the EODB index.
• The new plank cord has integrated bankruptcy and the 2016 bankruptcy cord into one law and regulation. It is that India's bankruptcy regulations are taken equal to global standards.
• In May 2019, we were created by 3,56 million new bank accounts in financial inclusions such as PMJDY.
• The IED liberalization system has helped the index EODB industry. The big entrant IED creates jobs, revenues and investments. The
• infrastructure and connectivity received major outbreaks, such as plans such as Bharatmala and Sagarmala.
• Bharatnet - This is the telecom infrastructure provider with GOI and improves the digital network in the rural area of the country. This is probably the largest rural broadband project.
• India won fourth in the world, using power in the world and ranked around the world in the world using solar power. Overall, India won the 5th of the world where a new renewable energy capacity has been established.
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Make in India – Advantages

The Make in India campaign has had several positive developments for the country. Below are some more benefits that have been derived from this mission.

• Creating new job opportunities.
• Expanding economic growth to increase GDP.
• The rupee would rise as foreign direct investment (FDI) inflows increase.
• Small manufacturers will benefit, especially if foreign investors invest in them.
• When nations invest in India, they bring with them cutting-edge technology in a variety of industries.
• India has risen in the EoDB ranking as a result of the many activities undertaken under the Mission.
• The development of rural regions will be aided by the establishment of manufacturing centres and companies.

Make in India – Challenges

• Although the campaign was successful for a number of quarters, there was also a lot of criticism. The country also faces many challenges to achieve the lofty goals that the establishment has set. Some of the reviews are presented below.
• India owns about 60% of the arable land. Boosting production is expected to negatively affect agriculture. It can even cause permanent disturbance of arable land.
• It is also believed that rapid industrialization (even with a “green movement”) can lead to the depletion of natural resources.
• One of the failures of soliciting FDI on a large scale is that local farmers and small businesses may not face competition from international businesses.
• The countryside, with all its emphasis on production, can cause pollution and side effects on the environment.
• The national physical infrastructure has many serious shortcomings. For the campaign to be successful, it is necessary to develop the existing infrastructure in the country and reduce problems such as corruption to a minimum. Here, India can learn from China, which has significantly improved its share of global production from 2.6% in the 1990s to 24.9% in 2013. China has rapidly opened up. extensive physical infrastructure such as railways, roads, electricity, airports, etc.