Introduction
The clarion call: Make in India revitalises India’s trade and commerce enterprises and entrepreneurs to help the recycling of India’s historical monopoly as a trading economy with the inspiration of being self-sufficient and re-emerging as the lord of modern trade imperialism. Historical evidence proves that India was a trade and commerce-based economy supported by an advanced transport system. India was then, as a whole, ‘small-scale manufacturing industry’, ‘handloom industry’, and ‘art, craft and cottage industry’ underwritten by its trade. Then we had a large quantity of manufacturing surplus and the trade greatly supported growth and prosperity by spreading our goods far and wide. India earned name and fame even in European markets, drew the attention of the European trading companies, and for this reason India was then considered a ‘Golden Bird’ in trade and commerce.
However, with the arrival of the European trading companies and the establishment of ‘British Colonial Empire’, foreign trade had been destroyed. ‘Indian Cottage Industries’ completely declined, pattern of agriculture changed by the forceful replacement of food crops with cash crops—the raw material for most of the ‘Colonial Industries’ and were in great demand even in European industries. This change made an adverse impact on Indian economic structure and resulted in its complete downfall. Moreover, the drainage of Indian wealth and resources encumbered the economy and ultimately removed the economic cornerstone of the country.
India regained its ground after Independence and partition and endeavoured to rebuild and strengthen its economy. Because of the immature industries and for fear of competition with foreign popular and cheap goods, however, India followed socialistic ideology-based policy of ‘Central Plans’ by giving initial importance on ‘Heavy Industries’. However, the initiative failed owing to the want of latest technology and investment.
When the ‘New Economic Policy’––liberal economy came into effect, the current Indian economy was restructured and our required markets were created. With refreshed initiative, India is now endeavouring to improvise and boom its industries relying on the insufficient investment resources and technology. Although Indian economy lags behind other economies in the world for these insufficiencies, yet India is a vast source of skilled human resource largely in service sector, and by its contribution this sector grows rapidly and supports our economy supplying a surplus in the form of ‘Balance of Payment’. But the comparative immaturity and deficiency of industries cannot elevate us from the ground, and because of the narrow outlook of intrinsic entrepreneurship our limited exports also suffer recurrent trade shortfall which gives more adverse ‘Balance of Payment’ and shows current account shortage. So, revenue generation greatly depends on the service sector, the tertiary one, while our primary sector has been overburdened persistently as consequences of marginalised land area, out-of-date agricultural practices, want of irrigation, and unforeseen climate––which, in general, greatly affect our social, economic and political structure.
On the other hand, the problems of growing unemployment rate, hike of market price, poverty, health and hygiene, confusion in between the continuity and restructuring education system, access to natural resources like clear water, energy etc. have postulated a risk in Indian economy. At this crucial juncture, the Modi Government has emerged with a clear vision of broad outlook and great expectation with the objective of combating all these serious challenges and bringing a radical change in India. With the firm conviction of building India for its re-emergence as the manufacturing leader, this government has given emphasis on the pro-industry motive, and is striving to enhance growth by learning lessons from the past. This optimistic vision and confidence has created Prime Minister, Mr. Modi’s ‘Make in India’ campaign and it has waved a hope of growth and development across the country. Undoubtedly, it will revive our industries and increase the rate of manufacturing power though it has to go a long way to reach this great goal.
‘Make In India’ versus ‘Made In India’
In the connotation, ‘Make in India’ ignited by Prime Minister, Mr. Modi, ‘Make’ means that the process of making or developing something should be executed in India in which foreigners can take part, while ‘Made’ in ‘Made in India’ implies that only the production is carried out in India and by India. The present government has tendency on the motto, ‘Make in India’ as to support its manufacturing units, India is greatly in need of infrastructure––the backbone of economy, the key to growth of industrial and manufacturing sector. Including new major initiatives which are designed with a view to facilitating investment, fostering innovation, protecting intellectual property and building highest quality manufacturing infrastructure, the initiative,
‘Make in India’, has been started with the long-term objective of shaping India as a manufacturing hub and bringing overall change in the economy of India. Now success mainly depends on leveraging human faculty because of faster changes in business dynamics, globalisation, stiff market competitiveness and global involvement boosting the growth of domestic manufacturing by international companies. Furthermore, increasing inflow of investments and technology transfer is expected to make the campaign, ‘Make in India’ a great success.
Constituents and Dimensions of ‘Make in India’ ‘
Make in India’––a well-devised strategy of administrative reforms and economic prudence––is the national manoeuvre and spearhead of the Government, which concentrates on turning 1.25 billion populous India into a ‘global manufacturing hub’ with sufficient job opportunities primarily providing a favourable environment to investors––domestic as well as overseas.
The aspiration statement of the official website, www.makeinindia.gov.in, promises to accomplish the determined goal giving background to India’s manufacturing sector––in January 2010 accounted for fourth-fifth of the total production and grew just 3.3 per cent–– by increasing the growth rate of manufacturing sector from 12–14 per cent annually over the medium term, the share of manufacturing in Gross Domestic Product (GDP) from 16 per cent to 25 per cent and emphasising in creating 100 million extra jobs by 2022 only in the manufacturing sector.
Targets to Achieve:
i. Target of an increase in manufacturing sector growth to 12–14% per annum over the medium term.
ii. An increase in the share of manufacturing in the country’s Gross Domestic Product from 16 to 25% by 2022.
iii. To create 100 million additional jobs by 2022 in manufacturing sector.
iv. Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
v. An increase in domestic value addition and technological depth in manufacturing.
vi. Enhancing the global competitiveness of the Indian manufacturing sector.
vii. Ensuring sustainability of growth, particularly with regard to environment.
‘Make in India’: Foundation
Aiming at boosting entrepreneurship in manufacturing as well as other sources in India, the ‘Make in India’ campaign is based on four columns:
1. New Methods: The campaign identifies ‘ease of doing business’ as the principal determinant to encourage entrepreneurship and has already undertaken some stratagems in order to ease business environment.
2. New Infrastructure: The government’s objective is to build industrial corridors and smart cities, create highest standard infrastructure with ultra-modern technology and uninterrupted communication. Creative, Innovative and research works are supported through a quick registration system and upgraded infrastructure for IPR registration. The requirement of industry-oriented skills will be marked and initiatives to develop human faculty will be taken up accordingly.
3. New Zones: India is open to Foreign Direct Investment (FDI) largely in defence production, insurance, medical apparatus, construction and railway infrastructure.
4. New Attitude: The government will work as a facilitator instead of a regulator in co-operation with industry for sake of economic development of the developing country.
Objectives
i. The dogma of ‘Make in India’ lies on the backdrop of achieving an iconic identity and global leadership for India by revitalising its manufacturing sector and giving it a first track in global competitiveness.
ii. It aims at identifying substandard infrastructure and traditional labour, improving them in parlance of ultra-modern pattern and training labour as per the industrial job-oriented human faculty in the latest trend in order to foster ‘micro, small and medium size enterprises’ and ‘self-help groups’ that can earn name and fame in the world of manufacturing by proving entrepreneurship and producing cost-effective and highest quality products.
iii. The initiative looks for extensive growth seeking everyone’s active participation, for instance, Pradhan Mantri Jan Dhan Yojana (PMJDY).
iv. It determines on developing next generation infrastructure to prove food security, healthy, clean, peaceful as well as sustainable environment to live in.
Strategies in a Nutshell
1. Invest India body: The investor assistance body founded by the government will play role of the first reference point in order to guide foreign investors on all cases regarding regulatory and policy issues and to facilitate them to gain regulatory clearances. The body will also assist foreign investors from the very beginning to the end of their stay India in the purpose of investing and executing of their project. The information and facts necessary for the potential investors for each sector have been provided in brochures.
2. Consolidated services and faster security clearances: The central government is consolidating all central government services in an e-Biz single window online portal and advising the states to introduce self-certification. It has also directed the ministries of home affairs to provide all security clearances for investment proposals within three months.
3. Committed portal for business queries: A committed body has been organised to meet the queries from business organisations through a newly developed web portal [http://www.makeinindia.com]. The final support team of the body would meet important queries within 72 hours. The portal also boasts of a comprehensive list of FAQs and answers.
4. Interactions with the users/visitors: A proactive outlook will be set up to trace visitors for their geographical situation, interest and real time user behaviour. Sequent visits will be modified for the visitor on the basis of the collected information, and registered visitors on the website or standard queries will be followed up with information and newsletter in relation the queries.
5. Easing policies and laws: A large number of defence items have been ode licensed, while industrial licences have been validated three years more.
Abatement of Penury, Employment and Skill Development
Now India has a population of over 1.25 billion and is not self-sufficient in utilising its resources for most of the concerned population because the majority belong to Below Poverty Line (BPL) and is living an uncertain and wretched life. ‘Make in India’ initiative promises to bring a radical change in every sphere of manufacturing industry resulting in the increase of job opportunities for the quality human faculty in diverse sectors and opening many scopes, without any limitations, for entrepreneurs and business enterprises. This growth will gradually uplift bulk of common people from BPL to middle class by helping them to grow and develop both socially and financially, making them aware of the necessity of education and vocational training to develop skills, and afford to purchase costlier things essential in their daily life. On the basis of the increase of this transformation, Indian markets will converse into a favourable market for the world.
Indigenisation of Goods
‘Make in India’ encourages business organisations and entrepreneurs by the idea of indigenising manufacturing of goods, which will soon make India self-sufficient and help to emerge as a global exporter, and simultaneously creates bulk of scopes to foreign investors and manufacturers of setting up business hubs in major 25 sectors to produce goods in order to supply the growing Indian markets. The ideology of ‘Make in India’ is to paying equal importance to all buyers which inspires cost effective manufacturing. On the other hand, the foundation of business hubs will grow in parallel with the market demand and India will soon turn into a huge market of diverse products. The production of more affordable goods will raise the market demand as well as profit which will help earning foreign exchange, and at the same time, minimise India’s trade deficit and raise the figures of Balance of Payment. Moreover, India has great potential and is in urgent need of highly qualified personalities in respective spheres, for instance, to make successful executions of ambitious missions–– Mars Mission.
Welcoming the West
By ‘Make in India’ policy, India is out of red carpet with series of measures, acceptable rules, easier norms and conditions, open to foreign investors and manufacturers for the sake of reaching the target of the aspiring India. At the peak season of globalisation, the West as well as the other countries of the world advanced in ultramodern technology and huge investment looks at the Asian Markets with the aim of making investment and profit. At this crucial juncture, India––a large democracy and diverse demography––with its huge market has appeared as the suitable destination to those investors, and in the meantime many have already set up their business hubs. Therefore, ‘Make in India’ is on the right track to lead India its goal.
Foreign Direct Investment and First Develop India
The long-term significant initiative, ‘Make in India’, attracts foreign investors and entrepreneurs through Foreign Direct Investment (FDI) by providing a tremendous opportunity—First to Develop India (FDI), with lots of projects and schemes— beautifying Indian cities, towns, special economic zones and manufacturing areas.
Under this initiative, India has started many schemes such as Swatchh Bharat Abhiyan, Namami Gange (Ganga Action Plan) focusing on the resurgence and rehabilitation of rivers. The ideas of ‘smart city’ and ‘heritage city’ improve the standard of township as well as urban areas, and also build affordable houses, fosters India’s once neglected civilisation, culture and tradition through sustainable development.
No Defect and No Effect
No Defect: Goods must be manufactured in a careful considerate manner without defect as the slightest defect has an adverse impact of goods in the market. Therefore, manufacturing world class goods should replace with the highest quality ones with a vaster view to prove the trust and authenticity of products that bear the dream of 1.25 billion Indians.
No Effect: The use of raw materials, energy, water, fuel, land, etc. in industrial units to manufacture the desired amount of goods often interacts with environment and affects it especially in cases of climate change; but by proportionate planning and using advanced technology, alternative energy sources, new and renewable, green and clean energy resources emission of carbon can be reduced to a considerable rate, all as a whole, will help sustainable manufacturing with surplus.
Requirement of Restructuring
The government of India has already taken measures to restructure the social and political standards of India, which are a must to make the mission of ‘Make in India’ a grand success. The assurance of the honest, foreseeable and growth-oriented governance is encouraging the foreign investors, and which results in the influx of foreign investment in India. By restructuring tax at entry level, the government has opened two ways—automatic and through government—before the foreign investors to invest and carry out business activities easily in India. Through Digital India—a best-in-class physical and online infrastructure—the government has concentrated on skill development inviting private players to actively take in all its schemes and campaigns of ‘Make in India’ mission executed by Public Private Partnership (PPP) and also has provided a platform of responsibility, transparency and honest and easy access to all its activities. In the true sense, the government assures its efficacy by Digital India, and in near future, it will empower e-corporate governance accountability and responsibility.
Some Slogans of ‘Make in India’
• From agriculture to automobiles
• From hardware to software
• From televisions to movies
• From satellites to submarine
• From friendship to partnership
• From paper clips to power plants
• From Bridges to biotechnology
• From roads to cities
• From profit to progress
• Whatever you want to make:
Make in India Major Sectors
1. Auto Components
2. Biotechnology
3. Automobiles
4. Aviation
5. Chemicals
6. Construction
7. Defence Manufacturing
8. IT and BPM
9. Electrical Machinery
10. Electronic System Design and Manufacturing
11. Food Processing
12. Leather
13. Pharmaceuticals
14. Media & Entertainment
15. Mining
16. Oil & Gas
17. Renewable Energy
18. Ports
19. Railways
20. Roads and Highways
21. Space
22. Textiles
23. Thermal Power
24. Tourism & Hospitality
25. Wellness
Conclusion
The success of ‘Make in India’ largely depends on the equal and direct participation of states through the federal structure of the nation, as the states have three-tier government with decentralised units like Panchayati Raj. So, ‘Make in India’ mission invites and encourages all its states to work hand in hand and cooperate actively in the hub-and-spoke schemes with a view to further this to the larger audience through the respective industries.