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.

Objectives

  • 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

Challenges

  • Land Acquisition Laws and rigid labour laws have stalled infrastructural projects, hampering the growth of manufacturing sector in India.
  • Lackof human capital with industry relevant training
  • 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
  • Lack of consensus among states
  • Complex Taxation Regime and corruption are seen as hurting business sentiments.

Possibilities and Prospects

  • 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

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