Make in India

‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. The ‘Make in India’ initiative has the objective of facilitating investment, fostering innovation, building class manufacturing infrastructure, improve ease of doing business and enhance skill development.

• The initiative has set an ambitious target of enhancing the manufacturing output contribution to 25% of GDP by 2025. DIPP (Department of Industrial Policy and Promotion) under Ministry of Commerce and Industry is the nodal agency to implement the initiatives.
• The objectives of Make in India include-
  
  • Promote efficiency and competitiveness in 27 specific domestic sectors
  • Create a conducive environment for investment, modern and efficient infrastructure
  • Open up new sectors for foreign investment in manufacturing sector
  • Forge partnership between the government and manufacturing industry

Sector-wise outcome of Make in India through the years

FDI policies have been simplified and liberalized for key sectors including defence manufacturing, food processing, telecommunications, agriculture, pharmaceuticals etc.

• Simplification and rationalization of existing rules has resulted in improving ease of doing business, which has led to India being placed at 63^rd rank in World Bank’s Ease of Doing Business rankings 2019.

1. Defence Sector

• Defence Procurement Procedure (DPP) has been amended to introduce Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured)
• Streamlining of Defence offset and Industrial licensing policy.
• Promotion of various indigenous defence products like Akash surface to air missile system, Dhanush artillery gun system and Light Combat Aircraft.

2. Civil Aviation Sector

• UDAN scheme has increased the influx of domestic airline passengers by 30% in the last 5 years.
• Proposal of Greenfield airports and revival of unused airports has been cleared and operationalized.
• Release of National Civil Aviation Policy to boost regional air connectivity, promote tourism and generate employment.
• Launch of GAGAN (GPS Aided Geo Augmented Navigation system) which aims to modernize communications, navigation and Air Traffic Management of Indian Airspace.

3. Food Processing Sector

• Mega Food Parks and Cold Chain Projects have been operationalized which has led to increase in food processing capacity in the country
• Creation of Quality Testing Food labs accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL) and Food Safety and Standards Authority of India (FSSAI).

4. Steel Sector

• Commissioning of India’s largest blast furnace, Kalyani at SAIL, Burnpur
• Generating power through green technology commissioned at Rashtriya Ispat Nigam Limited (RINL)
• Threefold increase in Hot metal production capacity of IISCO Steel Plant (ISP), Burnpur
• Modernization and capacity enhancement of Rourkela Steel Plant

5. Biotechnology Sector

• Launch of first indigenously developed and manufactured Rotavirus vaccine, ‘Rotavac’.
• Asia’s largest Andhra Pradesh MedTech Zone (AMTZ) has been setup in Andhra Pradesh which hosts 200 independents manufacturing units.
• Launch of National Bio-Pharma Mission to accelerate biopharmaceutical development in India by setting up new bioincubators and biotech parks
• India’s first cellulosic ethanol technology demonstration plant inaugurated in Kashipur, Uttarakhand
• Current Good Manufacturing Practices (CGMP) Plant inaugurated at Jammu for the manufacture of phyto-pharmaceuticals.

6. MSME Sector

• Mandatory procurement of 25% from MSME sector required by all Central Public Sector Enterprises (CPSEs) under the new Government Procurement Policy.
• Launch of Prime Minister’s Employment Generation Programme (PMEGP), which has led to setting up of 1.5 lakh units.
• Incubation cell ‘Knowledge for Innovation in Trade & Technology for Entrepreneurial Start-ups’ (KITTES) set up at IIFT, Delhi
• MSMEs granted relaxation in the registration and profitability criteria and ‘My MSME’ was launched to submit and track applications for schemes.
• Launch of a digital platform called Trade Receivables Discounting System (TReDS), which aims at addressing the critical financial needs of micro, small and medium enterprises (MSMEs).

7. Pharmaceutical Sector

• setting up of 11 National Institutes of Pharmaceutical Education & Research (NIPERs) approved
• To facilitate online filing of mandatory returns ‘Pharma Data Bank’ has been launched
• Price of coronary stents have been reduced by 85%
• Operationalization of Jan Aushadi Stores to provide quality medicines at affordable prices to the masses.
• Pharma Jan Samadhan and Pharma SahiDaam has been created by National Pharmaceutical Pricing Authority (NPPA) to redress consumer’s grievances relating to pricing and availability of medicines.

8. Media and Entertainment Sector

• National Film Heritage Mission (NFHM) aims to preserve the rich Indian filmic heritage for future generations.
• Print Media Advertisement Policy 2016 aims to promote transparency and accountability in issuance of government advertisements in print media.
• Single window clearances for film shootings for foreign film makers in India
• Approval for Film and Television Institute in Arunachal Pradesh
• Policy guidelines for empanelment of Private FM radio stations

9. Ports and Shipping Sector

• Sagarmala Project promotes port-led direct and indirect development and provides infrastructure to transport goods.
• National Waterways Act 2016, declared 106 additional inland waterways as National Waterways (NWs) in addition to the five existing National Waterways.
• Turn-around time and pre berthing detention has been decreased significantly.
• Seaborne trade in India has grown at twice the global growth rate of 3.3%
• Promotion of Coastal Economic Zones (CEZ) and Special Economic Zones (SEZ) and development of dedicated freight corridors connecting them to ports.

Challenges Faced

• Land Acquisition Laws and rigid labour laws have stalled infrastructural projects, hampering the growth of manufacturing sector in India.
• Growth of human capital with industry relevant training is a big impediment to success of Make in India
• Rising automation in the backdrop of labour surplus market threatens to increase unemployment and hinder growth
• Rising NPAs (Non-Performing Assets) and lack of access to global finance.
• Political stalemate or gridlock in passing critical economic reforms like GST, land acquisition law etc hampers investor sentiment.
• In a federal polity success of an initiative requires consensus among states which is found lacking.
• Complex Taxation Regime and corruption are seen as hurting business sentiments.

Way Forward

• Equip industrial zones with basic needs of modern and high-speed communication technologies, integrated logistics arrangements, regular power supplies, connectivity to transporting areas, ease of availability of raw materials etc.
• Increase awareness of ‘Investor Facilitation Cell’ which provides a one stop portal that provides information regarding investments in various industrial and infrastructure projects.
• Skilling and re-skilling of workforce by upgrading education curricula, revamping vocational training programmes and improving digital skills.
• Diversify energy sources and reduce emissions by manufacturing sector to grow continuously and expand, while simultaneously addressing climate change.
• Long term competitiveness in manufacturing sector would require significant investments in Research and Development and will help create a niche of Indian products in the global market.
• New, transparent, effective and equitable land acquisition law