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Report on make in India

Make in India is a major national programme of the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country. The primary objective of this initiative is to attract investments from across the globe and strengthen India’s manufacturing sector.

It is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India. The Make in India programme is very important for the economic growth of India as it aims at utilising the existing Indian talent base, creating additional employment opportunities and empowering secondary and tertiary sector. The programme also aims at improving India’s rank on the Ease of Doing Business index by eliminating the unnecessary laws and regulations, making bureaucratic processes easier, making the government more transparent, responsive and accountable.

I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any countryGra of the world, but manufacture here. We have skill, talent, discipline and the desire to do something. We want to give the world an opportunity that come make in India, Prime Minister of India, Mr Narendra Modi said while introducing the programme in his maiden Independence Day speech from the ramparts of the Red Fort on August 15, 2014. The initiative was formally introduced on September 25, 2014 by Mr Modi at Vigyan Bhawan, New Delhi, in the presence of business giants from India.

The focus of Make in India programme is on 25 sectors. These include: automobiles, automobile components, aviation, biotechnology, chemicals, construction, defence manufacturing electrical machinery, electronic systems, food processing, IT & BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textile and garments, thermal power, tourism and hospitality and wellness.

The most important question that we have discussed in the report is Why Make In India Is Important?
We can briefly state that due to the Make In India incentive our country stopped relaying on other countries for their demand and the term of self reliance started to develop in the Indian market. Every sector started to develop their production in such a way that they could arrange all the desired resources and produce all the products with in the country.

Due to which Indian economy started generating employment which gave a firm amount of employment within the country and every section of society now started to have a good amount of disposal income to spent.. Which gave a boost to the Indian economy as now Indian economy started to get a good amount of cash in hand to circulate so as a result of this procedure in economy of india started improving.

Make in India had three stated objectives:
  1. to increase the manufacturing sector's growth rate to 12-14% per annum
  2. to create 100 million additional manufacturing jobs in the economy by 2022;
  3. to ensure that the manufacturing sector's contribution to GDP is increased to 25% by 2022 (later revised to 2025)

Automobile sector
General Motors announced an investment of US$1 billion to manufacture automobiles in Maharashtra.

In April 2017, Kia announced that the company would invest over $1.1 billion to build a car manufacturing plant in Anantapur, Andhra Pradesh. The facility is the company's first manufacturing plant in India. Kia stated that it would hire 3,000 employees for the plant, and it would produce 300,000 cars annually. Construction of the plant began in mid-2017 and is expected to be completed by March 2019.

The first vehicles are scheduled to roll off production lines in mid-2019. Kia president Han-Woo Park announced that the first model produced at the plant would be an SUV(sport utility vehicle) specifically designed for the Indian market. But not in West Bengal because of the aftermath of the Singur protest. Nano project is the dream project of Ratan Tata and the Left Front Government(1977-2011). The moto of the government was to provide jobs for skilled and unskilled workers and also give an economic boost in West Bengal. Later the company decided to build this project at Sanand in Gujarat. Park also added that Kia would invest over $2 billion and create 10,000 jobs in India by 2021.

In March 2016, B.K Modi group announced that it is going to set up an electric bus manufacturing plant near Moradabad, Uttar Pradesh. The investment is through a technological tie-up with BYD.

In July 2017, SAIC Motor announced that it is going to invest ₹2,000 crore ($300 million) to build a car manufacturing plant in Halol, Gujarat.

In mid-2017, European automobile major PSA announced that in a partnership with CK Birla Group, it is going to build a car manufacturing plant in Tamil Nadu at the cost of ₹7,000 crore ($1.03 billion).

Elon Musk has recently reiterated his intent to join Make In India with all electric car manufacturer Tesla commencing partial operations by 2019 and full operations by 2020.

Hitachi announced an auto-component plant in Chennai by 2016 with an increase in their India employees count from 10,000 to 13,000.

The sales of automobile in india is increasing from an increasing rate after the announcement of make in india incentive by the government so we can say that it is one of the positive aspect of the make in india incentive.

Different international companies are also started to setup there production unit in India.

Due to which the production and output of automobiles in the country has seen a rapid growth.

Production units are increased subsequently the opportunity of employment is also increased after the setup of major industries.

Aviation Sector
  • The global revenue for commercial airlines in 2019 was estimated at USD 838 Bn.1
  • India has 91 international carriers out of which 5 are domestically owned. India has air connectivity with 59 countries through 344 routes.2
  • With the industry’s USD 30 Bn contributions to India’s GDP, the domestic aviation market is projected to rank 3rd globally by 2024.3
  • Air traffic has been growing rapidly in the country as compared to the global average. One hundred more airports would be developed by 2024 to support Udaan scheme. It is expected that the air fleet number shall go up from the present 600 to 1200 during this time

Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.
India is the fastest-growing aviation market and as per IATA the Country is expected to cater to 520 mn passengers by 2037.

RCS-UDAN
  • RCS-UDAN was launched to Promote air connectivity to unserved and underserved airports in Tier-II and Tier-III cities to stimulate regional growth and provide affordable air travel to the citizens.
    76 Airports operational till 2014.
    53 airports added to the network in the last 6 years
    Total operational airports today 76 + 53 = 129 in 2020
  • On 14th January 2021, the first flight was flagged off at the newly constructed Hisar airport in Haryana from Chandigarh.25
  • 08 new RCS routes have been operationalized in the month of January 2021.26
  • The first direct flight operations between Nashik (Maharashtra) and Belgaum (Karnataka) started today under the RCS-UDAN (Regional Connectivity Scheme — Ude Desh Ka Aam Nagrik).
  • 34 routes have been operationalized, awarded under round 1, 2 and 3 / Tourism RCS. These 34 RCS routes provide connectivity to 4 unserved (Jharsuguda, Mysore, Kolhapur and Jalgaon) and 4 unserved (Gwalior, Belgaum, Durgapur and Shillong) airports connecting 10 served (Raipur, Bhubaneswar, Kolkata, Bangalore, Mumbai, Hyderabad, Goa, Kochi, Rajahmundry and Vizag) airports under the scheme.
  • 30 new RCS routes have been commenced and operations started from 03 new airports in the month of March 2021.
  • NABH Nirman announced in 2018-19 Union Budget, aims to expand airport capacity by more than five times to handle a billion trips in a year. The expansion is planned to be funded by leveraging the balance sheet of the Airports Authority of India.
  • Secure Application for the Internet (SAI) - Indian Army has developed Secure Application for the Internet (SAI) for a simple and secure messaging application. The application supports an end to end secure voice, text and video calling services for Android platforms over the internet. The application has been vetted by CERT-in empanelled auditor and Army
  • Cyber Group.
  • Initiatives for Maintenance Repair and Overhaul (MRO) services:
    • The tools and tool-kits used by the MRO have been exempted from Customs duty. The exemption shall be based on the list of tools and tool kits certified by the Directorate General of Civil Aviation (DGCA) approved Quality Managers of aircraft maintenance organisations.
    • MROs were required to provide proof of their requirements of parts or orders from their client airlines. The process for the clearance of the parts has been brought in line with that of the tool kits for one-time certification by DGCA approved Quality Managers in MROs.
    • Restriction of one year for utilization of duty-free parts has been extended to three years to enable economies of scale.
    • To allow the import of unserviceable parts by MROs for providing exchange/ advance exchange, the concerned notification has been revised to enable the advance export of serviceable parts.
    • Foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months. For a stay beyond 6 months, DGCA's permission will be required.

  • India to become a hub for MRO Airframe. There is an investment of 2 hanger base/heavy maintenance facility for narrowbodies aircraft tied up at Kochi Airport by private MRO.

Biotechnology Sector
Biotechnology has emerged as an integral part of the Indian bio-economy. The estimated value of biotechnology sector was USD 44.47 billion in 2017 with a recorded growth of 6.8% from 2016. The projected target for the government is to reach the market size value of USD 100 billion by 2025. Currently, Indian biotech industry holds 3% of the global market share and is 3rd largest in Asia-Pacific region. The DBT alongwith BIRAC is playing a crucial role in the implementation and delivery of the flagship programs of the Government of India, such as ‘Makein- India’ and ‘Startup India’. DBT recognizes the necessity for entrepreneurship development among the youth in the country and hence has taken initiatives to build, support and promote Indian biotech ecosystem in healthcare, agriculture and industrial biotechnology.

Make in India (MII)
Make-in-India is a flagship program that was launched on September 25, 2014 by the Government of India. Owing to the fact that the country’s biotechnology industry is in the growth phase where the opportunities are immense, biotechnology was chosen as one of the champion sectors in Make-in-India initiative. Realizing this fact, DBT entrusted the responsibility to BIRAC for establishing Biotechnology Industry Facilitation Cell.

During the year, the following major activities were undertaken:
  • The Make-in-India Cell ensures wider dissemination of the Government programmes and other information relevant to the establishment and growth of startups,SMEs and companies.
  • After successful completion of Make-in-India 1.0, the facilitation cell at BIRAC under the guidance of DBT has formulated the Make-in-India Action Plan 2.0.
  • The Make-in-India Facilitation Cell at BIRAC is also involved in the various communication and outreach activities for disseminating various initiatives of DBT and BIRAC.
  • A Strategy Meet was organized in July 2018 to discuss the road map for achieving $100 Billion Bioeconomy of India by 2025. DBT & BIRAC have started implementing the recommendations.
  • Creation of Regulatory Facilitation Cell at BIRAC.
  • Product commercialization Unit creation at BIRAC. Secondary Agriculture Entrepreneurial Network (SAEN) was launched in 2018 which is led by scientists from The Punjab State Council &Technology (PSCST) and other partners, such as, National Agri-Food Biotechnology Institution (NABI), Centre for Innovative and Applied Bioprocessing (CIAB) and BIRAC’s BioNEST –Panjab University (BioNEST-PU). The project aims at promoting new enterprises and support existing industry in the secondary agriculture sector.
  • With an aim to promote Make-in-India, BIRAC & Kalam Institute of Health Technology (KIHT) have partnered to facilitate start-ups, entrepreneurs, researchers, academicians, incubation centres & SMEs in the area of testing & standardization of medical devices. The Cell specifically monitors Startup India and Make-in-India action plan mandated activities and prompts the respective scheme coordinators regarding the progress of some of the important initiatives of DBT & BIRAC such as: BioNEST, BIRAC’s Regional Centers, Equity Funding Schemes etc.

Defence Sector
  • We are almost importing our 60% of defence sector from other countries. India is 2nd largest importer of defence products all around the world. Defence minister Rajnath Singh unveiled the defence Acquisition Procedure (DAP) in New Delhi on September 28, 2020, which is aligned with government vision of Atmanirbhar Bharat and giving an impetus to the Make in India initiative. India requires strong defence capabilities to attain its superpower ambition, growing complexity of security challenges in India’s neighbourhood and economic power
  • In pursuit of this India is one of the largest defence equipment importers accounting to more than 14% of global arms imports during 2009-13 , Stockholm International Peace Research Institute (SIPRI).
  • However, with 60-70% import – dependence for weapons, spares and ammunition create vulnerabilities during military crises.
  • We are currently procuring Rs 800-900 billion worth of of capital equipment every year and about Rs 250-300 billion of revenue equipment every year.
  • Out of the total, around 600 billion worth of spares parts, components and sub assemblies are getting imported every year
  • Even if the aim is to manufacture 50-75% of this in India, it is Rs 300- 400 billion opportunity.
  • Reducing Fiscal Deficit:
    India is the second largest arms importer in the world ( after Saudi Arabia). Higher import dependency leads to increase in the fiscal deficit. Despite having the fifth largest defence budget in the world, India procures 60% of its system from foreign markets. India can export its indigenous defence technology and equipment to the neighbouring nations.
  • Security Imperative:
    Indigenisation in defence is critical to national security also. It keeps intact the technological expertise and encourages spin-off technologies and innovation that often stem from it.
  • Employment generation:
    Defence manufacturing will lead to the generations of satellites industries that in turn will pave the way for generation of employment opportunities. As per government estimates, a reduction in 20-25% in defence related imports could directly create an additional 100,000 to 120,000 highly skilled jobs in India.
  • Strategic Capability:
    Self – sufficient and self- reliant defence industry will place India among the top global powers
  • Nationalism and Patriotism can increase with indegenious production of defence equipment that in turn will not only boost the trust and confidence of the Indian forces but will also strengthen a sense of security and sovereignty in them.
  • Government Initiatives:
    The government has taken the following policy initiatives to promote ‘Make in India’ in defence sector:
    Ministry of defence has prepared a Negative list of 101 items for which there would be an embargo on them on the import beyond the timeline indicated against them.
    This negative list comprises of not just simple but also some high technology weapons like artillery guns, assault rifles, corvettes, sonar systems, transport aircrafts, Light combat helicopters, radars any many other items to fulfill the needs of our defencesector.

    In order to promote self-reliance in defence sector the government has announced several measures under Atmanirbhar abhyaan

Oil And Gas Sector

  • The Oil and Gas industry in India is set for a sea change with recent developmental ambitions of the Government of India – 175 GW of installed capacity of renewable energy by 2022, the aim to achieve 100 smart cities mission, 10% reduction of oil and gas import dependence by 2022 and provision of clan cooking fuels
  • India is the third-largest consumer of fuel in the world but will soon reach the top as the per capita consumption in the country is on the rise.
  • India is currently using only 6% of the world’s primary energy and the per capita consumption of energy is still one-third of the global average.
  • The total domestic LPG consumer is 28.90 cr in the country. Apart from LPG, 70.75 lakh domestic consumers are also using Piped Natural Gas (PNG).
  • Natural Gas production during March 2021 was 2683.90 MMSCM which is 11.11% higher when compared with March 2020.
  • Production of Petroleum Products during November 2020 was 21425.49 TMT which is 1.79% higher than the target for the month
  • As on 31st March 2019:
  • Crude Oil Processed during January 2021 was 21809.0 TMT which is 0.6% higher.
  • Estimated reserves of natural gas in India stood at 1380.63 bn cubic meters
  • Estimated reserves of coal in India stood at 326.49 bn tonnes
  • The estimated conventional hydrocarbon resources in 26 sedimentary basins stood at 41.87 bn tonnes (oil and oil equivalent of gas), an enormous increase of about 49% in comparison to the earlier estimate of 28.08 bn tonnes.
  • India is the second-largest refiner in Asia after China. It is emerging as a refinery hub with refining capacity exceeding demand. 3 The country’s refinery capacity has increased to 247.57 MTPA.
  • The demand for energy is expected to grow at a Compound annual growth rate (CAGR) of 4.2% from 2017-2040.
  • India has now emerged as the key centre for global energy demand and is expected to become the world’s largest energy consumer soon. The total consumption of energy resources in 2019-20(P) has increased as compared to 2018-19 for Natural Gas (5.51%) and Electricity from Hydro, Nuclear and other renewable sources from utilities (6.74)

Reason To Invest

  • The growing economy and population growth are the main drivers for oil & gas demand, increasing every year.
  • India is one of the fastest-growing energy consumers. It is the third-largest consumer in the world after China and USA.
  • In 2018, the Government of India launched the Bid Round-I under Open Acreage Licensing Policy (OALP) for bidding through International Competitive Bidding (ICB) process. About 55 Blocks having an acreage area of 59,282 sq km were awarded in Bid Round-I.
  • National Data Repository (NDR) was setup on 28 June 2017, at Directorate General of Hydrocarbons (DGH), to make the entire Exploration and Production (E&P) data available. This is mainly for commercial exploration, research and development and academic purposes
  • National Gas Grid: India targets to have a gas-based economy and increase the share of natural gas in the primary energy mix of the country from 6.2% to 15%. The Government has approved a capital grant of INR 5,176 crore under Pradhan Mantri Urja Ganga to provide clean energy in the eastern part of the country.
  • Pradhan Mantri Ujjwala Yojana (PMUY): PMUY launched in FY 2016-17 to provide LPG connections to 50 mn women from the Below Poverty Line (BPL) families.
  • Under PMUY scheme, 5.90 crore LPG connections have been released as on 31st December 2018 bringing cleaner energy and better health across the nation.
  • OMCs have delivered 1413.38 lakh refills to PMUY beneficiaries under this Scheme as on 30.11.2020 and more than 7.5 Cr PMUY beneficiaries have availed free cylinders under the scheme.
  • Supportive Government Regime:
    ease of doing business moved to industry-specific policy HELP (Hydrocarbon Exploration & Licensing Policy). The Policy has provisions for a single License for exploration and production of conventional as well as nonconventional Hydrocarbon resources, pricing and marketing freedom and reduced rate of royalty for offshore blocks among other benefits.
  • India is a net exporter of petroleum products since FY 2001-02 and also the largest exporter of petroleum products in Asia since August 2009.
  • Two world-class gas hydrate reservoirs have been discovered under National Gas Hydrate Project-2 (NGHP-2). This has opened new avenues for alternative resources.
  • Investment opportunities are in the upstream sector, gas pipeline, city gas distribution (CGD) network, LNG terminal, development of underground coal gasification, coal to liquids, petrochemical and refinery.

KEY ACHIEVEMENTS
  • India is the fourth-largest refiner in the world with a total refining capacity of 247.57 MMTPA
  • The target of providing LPG connections to 5 crore women belonging to the Below Poverty Line (BPL) under the Pradhan Mantri Ujjwala Yojana was achieved 8 months ahead of the schedule.
  • A total of 32 blocks covering approximately 59,000 sq. km area have been awarded under OALP bid Rounds II and III during the year 2019. Under bid round IV of OLAP, 7 Blocks with an area of approximately 18500 sq. km have been awarded.
  • 26.79 cr LPG customers are availing subsidy under PAHAL Scheme and nearly 9 lakh customers have joined this scheme in the month of September, 2020. As on 30.09.2020, more than 1.08 cr customers have given up LPG subsidy under the Give it Up initiative.
  • The 2655 km Jagdishpur – Haldia&Bokaro – Dhamra Pipeline Project (JHBDPL) is being executed by GAIL at an investment of INR 12,940 crore, which includes 40% capital grant (i.e. INR 5,176 crore). JHBDPL will cater to the energy requirements of five states, namely Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.
  • Under the City Gas Distribution Bidding, 86 Geographical Areas (GAs) in the 9th round and 50 GAs in the 10th round have been authorized.
  • Under Pradhan Mantri Garib Kalyan Package (PMGKP), as part of the Economic response to COVID-19, free of cost LPG cylinders are being provided to PMUY beneficiaries for upto three free LPG refills till 31.12.2020.
  • In the month of December 2020 more than 4.64 lakh, new LPG connections were issued and the total number of connections released in the current financial year is nearly 63.58 lakhs as on 1.12.2020.
  • The Crude oil production during December 2020 was 2555.66 TMT.
  • Hon’ble PM dedicated Gasoline Desulphurization (GDS) Unit under CPCL-fuel Quality up-gradation project to the nation to boos the use of Gas.

Railway Sector

Key Achievements
  • The Indian railways have set up the country’s first Waste to Energy plant in Bhubaneswar. Based on its patented technology called POLYCRACK, the plant has a capacity of 500 Kgs waste per day. The technology is the world’s first patented heterogeneous catalytic process. The waste is processed and reformed within 24 hours without emitting any hazardous pollutants into the atmosphere.
  • Indian Railways has created a new world benchmark by successfully running 1st Double Stack Container Train in high rise Over Head Equipment (OHE) electrified sections, having a contact wire height of 7.57 metre. This achievement will also boost the Green India mission.
  • Indian Railways has operationalised its First 12000 HP locomotive. For the first time in the world, a high horsepower locomotive has been operationalised on a broad gauge track.
  • The locomotive has been produced under the Make in India initiative, and India has become the 6th country to join the elite club of producing high horsepower locomotive indigenously.
  • The semi-high speed (160 kmph) self-propelled Train 18 has been manufactured in India, boosting the Government's Make in India’ initiative.
  • The ‘Sugamya Bharat Abhiyan’ is an initiative for the differently-abled and children. Under the scheme, 652 escalators & 481 lifts have been installed, as of March 2019. 2
  • Chittaranjan Locomotive Works produced as many as 250 electric locomotives (WAG-9 HC, 33071) in 188 working days, as against 190 days last year.
  • By December 2023, the entire rail network will be fully electrified and by 2030, the entire rail network will run on renewable energy.


FDI Policy

  • The FDI Policy permits 100% FDI in railways infrastructure sector. FDI is permitted in the construction, operation and maintenance of the railway transport sector:
    1. Suburban corridor projects through PPP model
    2. High-speed train projects
    3. Dedicated freight lines
    4. Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities
    5. Railway electrification
    6. Signaling systems
    7. Freight terminals
    8. Passenger terminals
    9. Infrastructure in industrial park pertaining to railways line/sidings including electrified railways lines and connectivity to the main railway’s line
    10. Mass Rapid Transport Systems
  • The cumulative FDI equity inflow in the Railway related components industry is USD 1,217.56 mn during the period April 2000 to December 2020.

Foreign Investors

  1. Alstom Transport Holdings B.V. (Netherlands)
  2. Bombardier (Singapore)
  3. Ansaldo STS (Australia)
  4. GE Capital International (Mauritius)
  5. Inversiones EN Concesiones (Spain)

FDI
FDI in India has followed a positive trend since the launch of Make in India. FDI inflow from April 2014 to March 2019 ($286 Bn) is 46.94% (approx.) of the overall FDI received in the country since April 2000 ($592.08 Bn). For the 1st time, India crossed the $60 Bn mark in FY 2017 - 18 with $55.55 Bn in FDI, due to the investment friendly policies and opening of FDI allowance in various sectors.

The Automobile industry in India witnessed a growth of 25.54% during 2017-18 to 2018-19. FDI equity inflows increased substantially to $2.09 Bn during 2017-18.1 The first 6 months of 2018-19 have seen FDI inflows of $1.598 Bn as against $2.09 Bn in the whole of 2017-18.

In the Textile industry, the Compound Annual Growth Rate (CAGR) of 5.02% was recorded in FDI equity inflows during April 2014 – March 2019. The total FDI in the industry until March 2019 is $3.12 Bn

FDI entry Routes
FDI under sectors is permitted either through Automatic route or Government route.
Under the Automatic route, the non-resident or Indian company does not require any approval from GoI.
Whereas, under the Government route, approval form the GoI is required prior to investment. Proposals for foreign investment under the Government route are considered by the respective Administrative Ministry/Department.

List Of Prohibited Sectotr

  • Lottery Business including Government/ Private lottery, online lotteries etc
  • Chit Funds
  • Trading in Transferable Development Rights (TDR)
  • Manufacturing of Cigars, cheroots, cigarillos, and cigarettes (tobacco or tobacco substitutes)
  • Gambling and betting including casinos
  • Nidhi Company
  • **Real Estate Business or Construction of Farm Houses
  • Sectors not open to private sector investments – atomic energy, railway operations (other than permitted activities mentioned under the consolidated FDI Policy)
  • Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities
  • Real estate business shall not include the development of town shops, construction of residential/ commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations, 2014.

Make In India In Generating Income

Make in India is an initiative launched by the Government of India to encourage multinational, as well as national companies to manufacture their products in India. This programme was launched in 2014 on 25th of September by the PM at the Vigyan Bhawan in New Delhi. India emerged, after initiation of the programme in 2015 as the top destination globally for foreign direct investment, surpassing the United States of America as well as the People's Republic of China.

Make in India is a campaign launched by the PM, Narendra Modi, which facilitates all the big business investors worldwide who want to do business in India. It is a big step taken by the government of India to reduce the level of unemployment faced by the youths of the country. The aim of launching this campaign in India is to make India a world level manufacturing powerhouse which will definitely help in solving the biggest issue of Indian economy.

This initiative was launched with new deals for foreign investors successfully in New Delhi with the top industrialists of India including Mukesh Ambani (Reliance Industries chairman), Azim Premji (Wipro chairman), etc. The objective of this campaign is to grow this to a 25% contribution as seen with other developing nations of Asia.

In this course of action, the government expects to create more jobs, attract much foreign direct investment, and transform India into a manufacturing hub preferred around the globe. After the initiation of the program, India would emerge as the top destination globally for foreign direct investment and a global manufacturing hub. Make in India program not only includes attracting foreign companies or investors to set up their business in India, but also encouraging domestic companies to increase the production within the country.

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.

Advantages Of Make In India
Let’s have a look on the biggest advantages of Make in India.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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
  9. 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.
  10. 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.
  11. 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.

Effect of make in India on local market

  • There is boost in local market after launching of Make in India. It had a huge effect on local markets, street vendors, local craftsman, weavers. India is an indigenous country and this scheme focuses on bringing up the rich cultural heritage thet India has.

    The PM street Vendor’s Atma Nirbhbhar Nidhi (SVANidhi) scheme was launched in June 2020 as a Micro-credit facility which aims to empower street vendors to recover losses incurred as a result of the COVID-19 pandemic.
  • It has been established under the aegis of the Ministry of Housing and Urban Affairs (MoHUA)
  • Key Objectives of the PM SVANidhi Scheme are:
    1. Facilitating working capital loans up to INR 10,000
    2. Incentivising regular repayment of loans by offering an interest subsidy of 7% per annum. This subsidy will be credited back on a quarterly basis.
    3. Rewarding digital transactions with monthly cash back offers.
Disadvantages Of Make In India
Now let’s have a look the biggest disadvantages of Make in India. Mukt Shabd Journal Volume IX, Issue IX, SEPTEMBER/2020 ISSN NO : 2347-3150 Page No : 28
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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. Mukt Shabd Journal Volume IX, Issue IX, SEPTEMBER/2020 ISSN NO : 2347-3150 Page No : 29
  9. 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.

Make In India: Impact On Indian Economy

The main focus of Make in India Campaign is mainly on 25 sectors. The supreme objectives of Make in India are as follow:
These sectors are 1. Automobiles 2. Food processing 3. Renewable energy 4. Automobile components 5. IT and BPM 6. Roads and highways 7. Aviation 8. Leather 9. Space 10. Biotechnology 11. Media,Entertainment 12. Textiles and garments 13. Chemicals 14. Mining 15. Thermal power 16. Construction 17. Oil and gas 18. Tourism, Hospitality 19. Defense manufacturing 20. Pharmaceuticals 21. Wellness 22. Electrical machinery 23. Ports 24. Electronic system 25. Railways. Almost every sector is capital-intensive and demands a lot of skill.

So, with the more and more investment in these sectors, the main focus will be on increasing employment and the use of advanced technology. It’s Creates a policy framework to ease foreign investment, ease of business and management of intellectual property. This helps industries to establish their manufacturing bases in India.. Exports from such industries help in contributing to our foreign exchange reserve.

Most importantly, such an initiative helps bring critical knowledge about manufacturing and production into the Indian population. This initiative, by Mr Modi is literally inviting the rich and semi-rich countries to step in India and invest their money for the future of India. It’s like inviting the countries to set up their companies in India and manufacture in the territory of our country. Now, this initiative has a great impact on the economy of our Mukt Shabd Journal Volume IX, Issue IX, SEPTEMBER/2020 ISSN NO : 2347-3150 Page No : 30 country. Obviously, if the big companies will setup their branches here, it will directly affect the GDP of India.

The main thing is that the focus is on the manufacturing sector, and the population of India is majorly middle-class or lower middle-class. So, the products manufactured by the foreign companies will be entirely for the upper section of the society. Hence, it is possible that the goals and aspirations of Make in India may not find much success. Make in India initiative is an honest attempt to revive the fortunes of Industry / Manufacturing sector. Revival of Industry sector is key role to revival of Indian economy.

Digital India will help to maintain contribution of Service sector but manufacturing / industry sector has to grow at much faster pace to out-pace service sector. It is not an easy task. Government should target to increase contribution of Industry / manufacturing from existing 16% to 35% in next 5 years. Make in India will help to achieve this goal but it comes with its own set of challenges. Manufacturing is capital and resources intensive sector which will require conductive environment for business. Labour issues will be major hurdle which the govt. is trying to handle through labour reforms.

Besides this, a major push is required to upgrade infrastructure of country. Govt. has also set up 10,000 Cr start up fund to encourage entrepreneurship. Basically objective is to create ecosystem of small industries in periphery of manufacturing hub similar to Maruti model. Government will provide all the approvals under Make in India initiate in a time bound manner through single online portal. However, as that quote goes „„„Never judge a book by its cover. So, today, we are not going to judge the Make in India initiative by its policies and schemes, but future results.

Research and Development.
To give a boost to innovation and continuously launch new services and products, multinational companies spend billions on research and development (R&D), which also helps in enhancing the quality of their existing products. After all, it’s the huge investments in R&D that lead to the next generation of technology. India offers talent and low costs, as a result of which many of these companies have (or are planning to) set up an R&D centre in India. The local industry, however, can do better on this front.

With its vast market, India is the land of unlimited opportunities for businesses. This, coupled with a proactive government, cost efficiencies, technical competencies, and a low-cost workforce for companies setting up their R&D centres here, is boosting investments and employment opportunities. Government incentives and initiatives such as Make in India, Start-up India, NPE 2019, FAME, etc, along with other enabling policies are helping global firms to set up their R&D centres in India.

India has become a key contributor in the global R&D sector, and demand for competitive technology will only increase the investments from big companies. Technology transitions such as the rollout of 5G/LTE networks and IoT will also accelerate the adoption of electronic products. This will further augment investments in production, distribution and R&D in the forthcoming years.

In India, investments in R&D have been mainly driven by the Central government, with the private sector and state governments found to be lagging in this area. This is in contrast to the advanced countries, where the private sector is the dominant and driving force behind R&D spending.

Government research is being driven by central public sector enterprises (CPSEs), primarily in the power and petroleum sectors. Ratan Watal, member secretary to the Prime Minister’s Economic Advisory Council (PMEAC), says that the growth in R&D expenditure should be commensurate with the growth in GDP.

The government is encouraging investments in R&D in various ways. This includes a tax-friendly Special Economic Zone policy for the next 20 years; incentives for R&D investments in technology, talent development and reskilling; encouraging funding for technology startups; easing the taxation regime for the digital economy; and promoting ease of doing business.
The tax benefits offered by the Centre include incentives on capital expenditures incurred by companies carrying out scientific research.

Some of these incentives (Source: India-briefing.com) are given below:
  • A concessional tax rate of 10 per cent (plus applicable surcharge and tax) on income earned from royalty on patents developed and registered in India.
  • A deduction of 150 per cent for manufacturing companies on in-house R&D expenditure for calculating tax (till March 2020, after which it will be phased down to 100 per cent). This includes expenditure on scientific research related to the production of articles and products, on the filing of patent applications and on obtaining approvals from regulatory authorities.
  • Custom duty exemption to the in-house unit of industries for the consumables and equipment needed for R&D.
  • A concession in GST for research institutions.

Conclusion

To erode unemployment from India free and bringing development this policy is the urgent need. We can reduce poverty to a great level by solving the unemployment issue for youths. The country’s economy will surely achieve great heights after the success of Make in India campaign. This, in turn, might solve several social issues in the country.

In the last six years, the government has significantly improved the business climate in the country. Make in India project has become a platform for national development, the campaign has made its presence felt across the globe. The ‘zero defect zero effect’ phrase that came with Make in India campaign has shown many positive impacts on the Micro, Small and Medium Enterprises (MSMEs) of India. As a result, several companies are now manufacturing goods with ‘zero defects’ and ensuring that it has ‘zero effect’ on the environment. Between September 2014 to February 2016 India received investment commitments worth US$250 billion and investment inquiries worth US$23 billion.

On a concluding note, it can be safely stated that make in India is an opportunity for everyone. It is a prospect, which if given time will flourish like a spring flower and would provide with the expected fruit.

This India globalization method will bring a need for B2B marketing for each business to create global leads. The Global B4B Marketing is the best way Mukt Shabd Journal Volume IX, Issue IX, SEPTEMBER/2020 ISSN NO : 2347-3150 Page No:
31 of creating new markets and growing your brand. All you require is consistency, passion and a good strategy. Our Prime Minister Make in India campaign appears to be an imaginative marketing campaign.

Make in India theme and also accept that this is an opportunity before us and we must cash it. This project will help us to stand globally with strong economy along with our Indian brand through Make in India. It Creates job opportunities and looks for overall development of India. But like every coin has two sides Make in India is not in the favor of agriculture development.

The government of India has taken number of steps to further encourage investment and further improve business climate. Make in India mission is one such long term initiative which will realize the dream of transforming India into manufacturing Hub. Start-ups in the core manufacturing sectors are poised to play a crucial role in the success of Make in India. Start-ups in the fields of telecom, defense manufacturing, automobile, Internet of Things, financial technology modules and mobile internet have immense potential to succeed in the scheme of Make in India Make in India scheme also focuses on producing products with zero defects and zero effects on environment.

Preference:
Modi Government announced Make in India incentive in the year 2014 its had been around 6 years after the announcement so as a citizen of the country its my full right to know everything about the government’s initiative so it gave me the motivation to write this report and to study the initiative with my full efforts.

Acknowledgment
I would like to express special thanks of gratitude to Dr. Ekta Sawhney as well as our Dean Dr. Kiran Gardner who gave us the golden opportunity to do this wonderful project Make in India which also help me in doing a lot of research and I came to know about so many new things I am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me a lot in finalising this project within the limited time frame.
Thanking You,

References:
  • Taneja, S. (2018, jan 25). A Glimpes of Make India. The week, pp. 23-98
  • Dasannacharya, B. (2016). Make in India. Current Science, 110(4), 477-479. Retrieved April 24, 2021, from http://www.jstor.org/stable/24907892
  • Rajan, R. (2015). Make in India, Largely for India. Indian Journal of Industrial Relations, 50(3), 361-372. Retrieved April 24, 2021, from http://www.jstor.org/stable/24549100
  • Wyatt, A. (2015). India in 2014: Decisive National Elections. Asian Survey, 55(1), 33-47. doi:10.1525/as.2015.55.1.33
  • Rao, A. (2016). Make in India – some suggestions. Current Science, 110(1), 9-9. Retrieved April 24, 2021, from http://www.jstor.org/stable/24906592
  • Rao, A. (2016). Box-cut clarity, mathematicians and Make-in India. Current Science, 111(5), 777-778. Retrieved April 24, 2021, from http://www.jstor.org/stable/24908562
  • Stanley, L. (2018). INDIA. In Emerging Market Economies and Financial Globalization: Argentina, Brazil, China, India and South Korea (pp. 163-184). London, UK; New York, NY, USA: Anthem Press. doi:10.2307/j.ctt216683k.13
  • Written By: Aayushi Bhatti Sambhav Purohit BA.LLB  Batch 2020-2025e

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