Make In India Scheme {"भारत में बनाओ" योजना}

Updated on Aug 17, 2020

Overview

The Government of India launched Make in India on 25th September 2014. Make in India aims to push and encourage the companies to manufacture everything in India and to motivate them by investing in manufacturing. The goal of this scheme was to create an environment for investments, to develop modern infrastructure, and to open new sectors for foreign capital. With an aim "to transform Indian into a global manufacturing platform", the initiative targets 25 areas of the Economy for the creation of jobs and skill enhancement.

The logo of Make in India is a Lion. The Lion represents strength, national pride, and manufacturing.

Objectives

  • The main aim of Make in India is to get an increase in the manufacturing sector's growth rate to 12-14% per annum.
  • Another objective of Make in India is to create 100 million more manufacturing jobs, by the year 2022, in the Economy.
  • Make in India aims to make sure that the manufacturing sector contributes 25% to GDP by the year 2025.
  • Another objective of Make in India is to create a skillset among the urban poor and also the rural migrants, to nourish inclusive growth.
  • In the manufacturing sector, Make in India aims at getting a rise in the domestic value addition and the technical depth.
  • Make in India also aims at having an environmentally-sustainable growth.

Need for the Scheme

  • India left behind the United States and China, with US$60.1 billion FDI, in the year 2015, after it gave commitments of investment worth ₹16.40 lakh crore and investment inquiries worth of ₹1.5 lakh crore (US$21 billion) from September 2014 to February 2016. 
  • The permission of 100% Foreign Direct Investment (FDI), is given in all the 100 sectors, except for the space industry, defence industry, and media of India, according to the current policy. 
  • The States of India also launched their initiatives in line with Make In India, namely, "Make In Odisha", "Tamil Nadu Global Investors Meet", "Vibrant Gujarat", "Happening Haryana" and "Magnetic Maharashtra".
  • According to The World Bank's 2019 "Doing Business Report", India has jumped off 23 positions, from the rank of 100 in 2017, to now be placed at 63rd, among 190 countries.
  • The service sector had led India's growth for the past two decades. With this, India's IT and BPO flourished tremendously. Still, with the share of the services sector in the Indian Economy being 57% in the year 2013, India Only contributed to 28% in the area of employment, which led to the need of a push to the manufacturing sector, to create and boost the rate of work.
  • Indian Economy's share of manufacturing is only 15% and seeing the poor condition of production in India. An overall trade deficit in terms of goods, the Government saw a need for Make In India. The only ⅕th of India's trade deficit goods get covered by the trade surplus. The Government is hoping to encourage businesses, both Indian and foreign, to invest in manufacturing in India, which will help this sector and also generate employment in both skilled and unskilled levels.
  • Another reason for targeting the manufacturing sector is because according to several studies, there is no other sector that seems to have an enormous multiplier effect on the economic growth of a country. Growth in the manufacturing industry creates more job opportunities which further create jobs, investments, and innovation, leading to high standards of living in the Economy.

Initiatives

  • For Foreign Direct Investment (FDI), sectors of railways, insurance, defence and medical devices have been opened up, for the very first time.
  • The maximum limit in Foreign Direct Investment is now 49% in the defence sector.
  • A permit of 100% Foreign Direct Investment has been given under the automatic route, in the construction and some specified rail infrastructure projects.
  • Necessary steps have been taking by the Government of India, To improve the rank of the country's 'Ease Of Doing Business'. India has become the highest-ranked in 'Ease of Doing Business' in South Asia Index, By moving up 23 points, to the 77th place.
  • Under Make In India, The Shram Suvidha Portal and eBiz Portal, etc. Have been launched.
  • Other Permits and licenses that are needed to start a business are also given.
  • In the fields of property registration, payment of taxes, getting power connection, resolving insolvency, enforcing contracts, reforms are taking place.
  • With the hope to improve and better the physical infrastructure, mainly through PPP mode of investment, the investment in Ports and airports has also been increased.
  •  The development of freight corridors is taking place as well. The plan of the Government is to launch five industrial corridors that are spread across the length and breadth of India, keeping in mind, the focus on inclusive development which will further systematically flourish industrialization and urbanization. The five corridors are: Delhi-Mumbai Industrial Corridor (DMIC), Amritsar-Kolkata Industrial Corridor (AKIC), Bengaluru-Mumbai Economic Corridor (BMEC), Chennai-Bengaluru Industrial Corridor (CBIC) and Vizag-Chennai Industrial Corridor (VCIC).

Schemes under Make-in-India Initiative

Skill India

Under Skill India, the aim is to skill 10 million people in India in several sectors. To achieve the goals of Make in India, it becomes essential to have a skilled human resource in the country as India has only 2% population that is considered as formally skilled workforce.

Start-up India

Start-up India aims to create and build an ecosystem that nourishes the growth of start-ups, gets sustainable economic growth, and creates large-scale employment.

Digital India

The motive of Digital India is to turn India into a knowledge-based and digitally strong economy.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

PMJDY aims to Have access to financial services such as banking savings and deposit accounts, remittances, credit, insurance, pension in a very affordable way. 

Smart Cities

Smart Cities have been launched with the motive to change and transform 100 cities of India and turn them into smart cities.

Atal Mission For Rejuvenation And Urban Transformation (AMRUT)

This mission's motive is to build basic public amenities and create 500 cities of the country more inclusive and turn them to a livable place.

Swachh Bharat Abhiyan

Swachh Bharat Abhiyan aims to have a cleaner India, and it promotes basic hygiene and sanitation.

Sagarmala

Sagarmala aims to develop ports and to promote port-led development in India.

International Solar Alliance (ISA)

121 countries are a part of ISA, and most of them are sunshine countries. This initiative aims to promote research and development in solar technologies and formulation of policies.

Accelerating Growth Of New India's Innovation (AGNII)

This initiative took birth to give innovation ecosystem a little push in India, by connecting the people and helping them in commercializing innovations.

Progress

  • The process of the tax process and system is for Businesses has become convenient and more comfortable after the introduction of Goods and Service Tax (GST).
  • Processes such as taxation, company incorporation, etc. Have been made online because of an increase in Digitization in the country.
  • In terms of the global standards, the bankruptcy code of India has become on par, because of the new insolvency code "Insolvency and Bankruptcy Code 2016", which has combined all the rules and laws related to insolvency into a single legislation.
  • As of May 2019, 356 mn new bank accounts got opened because of plans of budgetary incorporation, such as the PMJDY.
  • India's EoDB has gotten help through FBI liberalization.
  • Government of India Set up BharatNet,–world's largest rural broadband project, to improve digital networks in the rural areas of India.

Sectors of the Economy 

  • Automobiles    
  • Automobile components
  • Aviation
  • Biotechnology
  • Chemicals
  • Construction    
  • Defence manufacturing    
  • Defence exports    
  • Electronic systems     
  •   Electrical machinery
  • Exports
  • Information technology and business process management
  • Leather
  • Media and entertainment
  • Mining
  • Oil and gas
  • Pharmaceuticals
  • Ports & shipping
  • Railways    
  • Rapid Transit    
  • Renewable energy    
  • Roads and highways    
  • Space and astronomy    
  • Thermal power    
  •  Textiles and garments
  • Tourism
  • Wellness and Healthcare

Advantages

  • Generation Of Employment Opportunities
  • Expansion of economic growth leading to an increase in GDP
  • Inflows of FDI will strengthen the rupee.
  • Foreign Investors will lead to the growth of small manufacturers.
  • Investment of several other countries in India will flourish in India with the latest technologies in several fields.
  • The Rank of India has upped in the EoDB index.
  • There will be a development of so many underdeveloped areas of the country.

Challenges

  • The growth in the manufacturing sector will hurt the agriculture of the country, as 60% of the land of India is cultivable.
  • Rapid industrialization may lead to depletion of natural resources.
  • The small scale entrepreneurs and local farmers will have a lot of difficulty in coping up with the competition from international players, because of large scale Foreign Direct Investment.
  • The initiative can become a cause of more pollution and an unhealthy environment.
  • India requires a robust infrastructure to achieve the goals of Make In India.

Official Website

Go to the Online Website to learn in detail.

Frequently Asked Questions

Q. What is the primary objective Of Make in India?

The main objective of Make in India is to get an increase in the manufacturing sector of the country.

Q. Who launched Make in India?

Make in India is an initiative launched by the Government Of India.

Q. Does Swachh Bharat Abhiyan come under Make in India Initiative?

Yes, Swachh Bharat Abhiyan comes under the Make In India Initiative.

Q. What is the logo of Make in India?

The logo of Make in India is a Lion. The Lion represents strength, national pride, and manufacturing.

Q. What is the Target increase of Growth Rate of the manufacturing sector of Make in India?

The target is to get an increase in the manufacturing sector's growth rate to 12-14% per annum.


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WRITTEN BYVarsha Verma

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