MAKE IN INDIA
Launched on:
- The Make in India initiative was launched by Prime Minister in September 2014as part of a wider set of nation-building initiatives.
- Devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation.
- Make in Indiais an initiative by the Government of India to make and encourage companies to develop, manufacture and assemble products made in India and incentivize dedicated investments into manufacturing.
Objectives :
- to increase the manufacturing sector’s growth rate to 12-14% per annum;
- to create 100 million additional manufacturing jobs in the economy by 2022;
- to ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (later revised to 2025).
Focused sectors :
- Automobiles
- Automobile components
- Aviation
- Biotechnology
- Chemicals
- Construction
- Defence manufacturing
- Defence exports
- Electronic systems
- Electrical machinery
- Food processing
- 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
Pillars of the initiatives:
New Processes:
- ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship.
- A number of initiatives have already been undertaken to ease business environment.
- The aim is to de-license and de-regulate the industry during the entire life cycle of a business.
New Infrastructure:
- Availability of modern and facilitating infrastructure is a very important requirement for the growth of industry.
- Government intends to develop industrial corridors and smart cities to provide infrastructure based on state-of-the-art technology with modern high-speed communication and integrated logistic arrangements.
- Existing infrastructure to be strengthened through upgradation of infrastructure in industrial clusters.
- Innovation and research activities are supported through fast paced registration system and accordingly infrastructure of Intellectual Property Rights registration set-up has been upgraded.
- The requirement of skills for industry are to be identified and accordingly development of workforce to be taken up.
New Sectors:
- ‘Make in India’ has identified 25 sectors in manufacturing, infrastructure and service activities and detailed information is being shared through interactive web-portal and professionally developed brochures.
- FDI has been opened up in Defence Production, Construction and Railway infrastructure in a big way.
New Mindset:
- Industry is accustomed to see Government as a regulator. ‘Make in India’ intends to change this by bringing a paradigm shift in how Government interacts with industry.
- The Government will partner industry in economic development of the country.
- The approach will be that of a facilitator and not regulator.
- The Make in India program has been built on layers of collaborative effort. There has been from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners.
- A National Workshop on sector specific industries in December 2014 brought Secretaries to the Government of India and industry leaders together to debate and formulate an action plan for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP in the coming years.
Benefits of Make in India:
- Boost India’s Economic Growth: The make in India campaign will lead to an increase in exports and manufacturing. An increase in exports will improve the economy and India will be transformed into a global hub of manufacturing through global investment using the current technology. Manufacturing will also boost India’s economic growth and GPD.
- More Job Opportunities: It will lead to the creation of many job opportunities. Around ten million people are expected to get jobs. An increase in investment will bring employment opportunities for the skilled labor force and this will form a job market.
- Attract More Foreign Direct Investment (FDI): It will welcome more FDI. Since the government had promised to improve the ease of running businesses in India, it is going to attract many FDI. At the moment it has already received an amount of INR 20 K million from a proposal that was made on October 2014.
- Investment in India: Through Make in India Project more companies are looking to set up factories, a unit known as “Invest India” is in the process of being put to place. This unit will be under the department of commerce and will be available any time to make it easy to carry out regulatory clearance within the shortest time possible ensuring that businesses are run in India easily.
- Improvement in Areas: When a factory or an industry is set up in an area, it attracts labour, markets, and other people. With this, the financial status of the families which are living Mukt Shabd Journal Volume IX, Issue IX, SEPTEMBER/2020 ISSN NO : 2347-3150 Page No : 27 nearby to these areas will also improve. The area, its neighbouring places and the people living in these places will develop all together.
- Increasing the Value of Rupees: Make in India will be attracting more Foreign Direct Investment and which will result in increasing the value of Indian Rupee against the American Dollar. This will also reduce the effect of the hegemony of Dollar over Indian Rupee.
- A Shift from International Brand to Native Brands: Indians are attracted to international brands and do not pay attention to the indigenous brands, and this brings loss to indigenous producers. With Make in India, the indigenous products will get its recognition in the country, and these producers will start making profits.
- Technological Advancements: Make in India allows Indians to use the latest technology. This campaign encourages Indians to make new technology. Attention is also given to improving the skills of labour in the country.
- Simplifying Business: Make in India is an open invitation to manufacturers present in every corner of the world. For inviting as many manufacturers as possible, the government has removed many restrictions.
- Innovative Ideas from Young Generation: The young generation of India never gets an environment within the boundaries of the country to develop their skills and implement their innovative ideas in the country, and therefore they leave India for getting better opportunities. Make in India will provide the needed environment in the country itself and will take innovative ideas from the talented young generation of the country.
- Development of Rural India: When a factory is set up, it not only attracts labour but also attract development in that particular region. When a factory is set up in rural areas, then such areas are blessed with schools, healthcare facilities, markets, etc.
Disadvantages :
- Exclusion of Agriculture: India is an agrarian country with 61 percent of the total land under cultivation. But, Make in India encourages industrial development and excludes agriculture from it.
- Exploitation of Resources: Resources are limited in nature, while the demands of human beings have no end. Make in India focuses on developing manufacturing industries that consume many natural resources. This will endanger the survival of the population soon.
- Loss to Small Entrepreneurs: Make in India welcomes other countries in India, and when these countries set up its manufacturing unit in India, they attract the local people toward them, and this brings loss to small entrepreneurs who are already struggling to set up their position.
- Loss of Cultivable Land: The campaign focus on setting up of manufacturing unit in India. These manufacturing units can be set up at any place, and sometimes it also settles on those lands which are used for cultivation. Therefore, Make in India will destroy the worth of cultivable land.
- Loss to Other Sectors: The Indian economy has three sectors, named the Primary sector, Industrial or Secondary sector, and Service sector, but Make in India is emphasising on Secondary sector leaving all sectors behind. As the economy cannot develop by developing one sector only, complete attention on the manufacturing sector will not bring economic development to the country.
- Pollution: According to the data available, the Pollution Index of India is 76.50, and this level will surely increase after Make in India Campaign.
- Loss for Small Entrepreneurs: The make in India campaign, welcomes foreign countries to manufacture in India with open arms, this automatically eases up the various restrictions over trade with foreign countries, inviting attention of the international commercial companies. However, these companies will not only seduce the Indian population but also would dominate the small local entrepreneurs and force them out of business.
- Manufacturing based Economy: Indian economy is one of the largest economies in the world. It constitutes of three sectors i.e. agriculture, industry and services. Now the Indian economy majors up from the service sector which contributed up to 57% of the GDP. But with the introduction of the make in India campaign the economy is likely to rely completely on the manufacturing and exporting while the import industry will remain static. This eventually will be a huge loss for the other economic sectors and would automatically reduce the advancement of make in India.
- Bad Relations with China: The Indo-China relation is already a problematic cause for the country, with the initiation of the make in India crusade; India stands as one of the most promising rivals for China. This automatically has worsen the India’s long term feud with China, gradually with the success of Make in India, it is possible for the situation to become worse among the two economically growing countries because India has the advantage of young and skilled work force over China which will expectedly take make in India to new heights in the near future
Subscribe
0 Comments
