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The Make in India Initiative and Its Progress

The Make in India Initiative and Its Progress

By Anusha Nagvarapu



Make in India is a revolutionary national programme launched by the Government of India on 25th September 2014 with the aim of facilitating investment and fostering innovation. It aims at enhancing skill development and protecting intellectual property, in a manner wherein investments are attracted across the globe so as to cement India’s manufacturing sector and strengthen the same. The Initiative is led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India. In terms of economic growth, the initiative is an extremely important step in terms of progress.  The very notion of utilising what’s our own, instead of looking elsewhere for growth, is an essentially strategic one. Making use of the existing Indian Talent Base so as to create additional employment opportunities is one of its primary aims. In turn, this programme will also eradicate such laws and procedures that are deemed fruitless, and pave the way for easier and more transparent governance.


The focus of Make in India programme lies in 25 sectors including, automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing, electrical machinery, food processing, textiles and garments, ports, leather, media and entertainment, wellness, mining, tourism and hospitality, railways, automobile components, renewable energy, biotechnology, space, thermal power, roads and highways and electronics systems. An important aspect in this regard, is the Investor Facilitation cell on the website, that furnishes all and relevant information required by investors across the various sectors to make essential decisions in that regard. The website, in itself creates a primal focal point on live projects like industrial corridors and policies, in the area of foreign direct investment. The BJP-led NDA government’s campaign in turn, aims to boost domestic manufacturing and focus on attracting  foreign investments in India.  The logo for the campaign in itself, is a lion which symbolises success in all spheres.


As a result, India emerged as the top destination globally in 2015 for foreign direct investment (FDI), surpassing the USA and China, with US$60.1 billion FDI. The ‘Make in India’ initiative has made a considerable difference in the area of Foreign Direct Investment. The inflow has increased from USD160.79 billion in April 2014 and March 2017 representing 33%  of the cumulative FDI in India since April 2000. In the year 2015-16, the FDI inflow surpassed the USD 50 billion threshold, for the first time in one fiscal year. There has been a radical growth in the IT and manufacturing sectors as well, allowing several global as well as foreign investors to up their game by upgrading their business, so as to build products within the country itself. With the assistance of effective campaigns and strategies, the Make in India initiative has allowed for businesses, both on the multinational as well as domestic level to invest in India, and this in turn has made a noteworthy and incremental growth in the country’s GDP.


According to IMF World Economic Outlook (April 2017) and UN World Economic Situation Prospects 2017, India is the fastest growing major economy in the world, and is projected to remain so in 2017 and 2018. FDI policy and procedure have been simplified and liberalized progressively. Key sectors that have been opened up for FDI include Defence Manufacturing, Food Processing, Telecommunications, Agriculture, Pharmaceuticals, Civil Aviation, Space, Private Security Agencies, Railways, Insurance and Pensions and Medical Devices.


In terms of ease of doing business, India escalated 30 places and to the 100th position in the World Bank’s ease of doing business rankings as per World Bank Group’s Doing Business: 2018: Reforming to Create Job’s Report.


In respect of sector specific achievements, several are noteworthy. In the Aerospace and Defence arena, Indigeneous defence products were unveiled; those being Akash Surrface to Air Missile System, the Dhanush Artillery Gun system and Light Combat Aircraft. Exports have significantly increased from INR 1153.35 crore in 2013-14  to INR 2059.18 crore in 2015-16. The Defence Procurement Procedure, 2013 was amended, introducing Buy-Indian IDDM (Indigenously Designed, Developed and Manufactured), and the Defence Offset Policy has been streamlined.

In the area of aviation, FDI increased by 6 times from $93 million in 2011-14 to $519 million in 2014-17, indicating a ginormous advancement. Preference of domestic airlines by passengers increased by 29%; from 148 million in 2012-14 to 191 million in 2014-16. The National Civil Aviation Policy was introduced so as to create an integrated ecosystem, boost tourism and generate more employment. Six Greenfield airport projects were improved, herein.

When it comes to basic metals and cements, FDI has grown 5.9 times in the mining sector from $213 million in 2011-14 to $1261 million in 2014-17. Kalyani commissioned India’s largest blast furnace at SAIL, Burnpur. There has been modernisation of IISCO Steel plant. A three fold increase in the hot metal production capacity.

In the field of biotechnology, several advancements have been made. The first indigenous vaccine named ‘Rotavac’ was launched. India’s first cellulosic ethanol technology plant was developed through indigenous technology. Asia’s largest MedTech Zone was set up in Andhra Pradesh.

In the Capital Goods and Automative field, Foreign Direct Investment increased exponentially by 1.7 times from $3.98 billion in 2011-14 to $6.86 billion (2014-17).  In the field of food processing, 7 Mega Food Parks have been established, thereby creating over 36000 job opportunities during 2014-17. Quality testing food labs have been created. 27 labs have been accredited by the National Accreditation Board for testing and calibration laboratories. 20 laboratories were notified by the Food Safety and Standard Authority of India. (FSSAI).  When it comes to New and Renewable Energy, the effects of the Make in India initiative can be felt. The highest ever wind power capacity addition of 3,300 MW in 2015-16 was observed, which can be considered significant progress in this field. A 140% increase in solar power capacity addition during 2014-16 was seen, when compared to that in 2012-13. A Geographic Information System known as Wind Atlas was launched in 2015, which is a huge step forward as well. What is even more commendable in this regard, is that the Renewable Energy sector has been re-classified as ‘white category’ sector.


Electricity generation is in no way behind in this regard. It’s grown by 5.8% to 1,241.79 Million Units (MUs) in 2016-17. It is noteworthy in this regard that in 2016-17 the lowest ever energy deficit was observed at 0.7%. Another important and extremely relevant advancement is that of electricity supply in villages which currently stands at 99.3% of them which are supplied with electric power.


When considering the Railways, one must keep in mind the first semi high speed train ‘Gatimaan Express’ which has been launched. It has a top speed of 160 km/hr and is the first of its kind. A hearty sum of INR 97,636 crore has been sanctioned for the Mumbai-Ahmedabad high speed rail project.


A lot of emphasis has also been given to skill development under this initiative. Over 17.93 lakh people have been trained under Prandhan Mantri Kaushal Vikas Yojana (PMKVY). The Apprenticeship Act has been modified, which allows employers to engage 10% of the total workforce as apprentices. 33 Pradhan Mantri Kaushal Kendras (PMKK) have also been set up, and five new regional vocational training institutes  (RVTI)  for women for the purpose of skill development.


In the field of tourism, the e-Visa scheme is noteworthy in this regard. It has been extended to 161 countries and a 2.5 time increase in e-Visa arrivals has been seen in the years 2015-16. The Swadhesh Darshan has been launched and over 13 theme tourist circuits have been identified. Over 12 institutes of Hospitatlity Management has been sanctioned for North East, and 1.85 lakh people are being trained under the ‘Hunar se Rozgar Tak’ Scheme.



It is essential, in this context to mention India’s rival, China in terms of outsourcing, manufacturing and service business. It was important for India to up its game given the predominantly ailing infrastructure that existed prior to the initiative, and the lack of focus on the manufacturing status which didn’t allow it to reach the elite level that it needed to. Mentioned above are the many advancements in the various sectors of India , and are a clear cut indication that this was a much needed initiative that will bring India to a new and competitive level. The Modi Government in this regard has aimed to remove the obstacles that hinder growth in this regard, and make India the hub in terms of foreign and domestic investment. Given the rapid advancement, and with the right procedures in play, this initiative can prove to be just the nifty tool that will allow India to become the superpower that Modi envisions. It is progressive and developmental steps like these that sets India apart and allows for it to be seen as a ‘class apart.’

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