On February 23, 2022, Make in India tweeted that the world wants ‘Made in India.’ Exports of electronic goods increased by 88% from April-21 to January-22to the same period in 2013-14. The government’s policies are helping to enhance home production of high-quality, internationally competitive goods.
This article will discuss the objectives of making in India, its advantages; while also exploring the make in India sectors to analyze the policy impact on the manufacturing industry.
What is Make in India?
Prime Minister Narendra Modi announced the ‘Make in India’ program in September 2014. Make in India entails a complete revamp of out-of-date procedures and policies to create fresh new infrastructure. The Department for Promotion of Industry and Internal Trade (DPIIT) implements the Government initiative by collaborating with several highly specialized entities.
Foreign Direct Investment (FDI) has been allowed into various areas, including defense production, railroads, space, single-brand retail, etc. The loosening of regulatory rules makes it easier to run a business.
It comprises an unwavering support desk and a mobile-first website with a streamlined menu and information labyrinth. Under the World Bank’s ‘doing business’ philosophy, the ministry has collaborated with the World Bank Group to identify areas for improvement.
In India, project industries include automobiles, automobile components, aviation, biotechnology, chemicals, construction, defense manufacturing, etc.
Objectives of Make in India
Make in India’s key objectives are as follows:
- To make India a worldwide design and manufacturing center
- To launch innovative measures to attract foreign direct investment
- For India to rank higher in the World Bank’s Ease of Doing Business Index
- To relax rules and regulations in the corporate bureaucracy
- To create job opportunities and encourage innovation within the country
Four Pillars of Make in India
The Make in India project intends to promote India as a major investment destination. The project aims to create an investment-friendly climate, construct modern and efficient infrastructure, open up new industries for foreign investment, and forge government-industry cooperation.
The Make in India campaign has four pillars:
The government plans to build industrial corridors and smart cities to offer infrastructure based on cutting-edge technology, contemporary high-speed connectivity, and integrated logistics.
‘Make in India’ aims to change how the government engages with the private sector. Instead of being a regulator, the approach will be to become a facilitator.
According to Make in India, an essential aspect of promoting entrepreneurship is ‘ease of doing business and aims to de-license and de-regulate the industry throughout the corporate life cycle.
‘Make in India’ has designated 25 manufacturing, infrastructure, and service industries, with extensive information supplied via an interactive web platform and professionally created pamphlets. Defense production, construction, and railway infrastructure have seen significant FDI inflows.
Advantages of Make in India
- Economic growth will be inevitable due to product manufacturing in India, which will boost the trade sector and increase GDP, as the flow of income will be enormous with the establishment of new factories and various speculative investments in the Indian commercial industries.
- India invites the whole world to manufacture its products in India, which breaks barriers, and aspiring businesses worldwide now plan to invest in India without fear.
- India has always been short on inventive and new ideas due to a shortage of young workers. With the Make in India program, not only will the youthful people be given jobs, but their young and fresh ideas will also elevate the industrial sector to new heights.
- With the advent of Make in India, not only will the capital remain in India, but the country will also have access to foreign exchange.
Benefits of Make in India for Small Scale Industries (SSI)
The advantages of working in India’s small-scale enterprises are numerous, and SSI businesses also aid in the reduction of the country’s unemployment rate. Because small-scale industry generates most employment in India, SSI Businesses aid in job creation.
- National Small Industries Corporation Ltd. (NSIC) offers subsidized exhibition space to SSI Units at various domestic exhibitions to display their products and services, and establish a market for them.
- The Government of India provides a subsidy in which the cost of attaining ISO certifications such as ISO 9000 and ISO 14001 are inexpensive for SSI Units.
- The subsidy granted is 75% of the one-time registration price and 75% of the yearly recurring fee for the first three years of the cost of barcoding items.
- It often involves priority sector financing, a loan of a large amount at lower bank interest rates, and some relief and relaxation to SSI Units in the event of a repayment delay. A collateral-free loan facility is also available for small-scale companies, among other things.
- SSI Units enjoy tax exemptions from specific direct and indirect taxes.
- SSI Units are exempt from paying sales taxes and have first dibs on manufactured items in most states.
- The CGTMSE Scheme enables SSI businesses to acquire business loans without collateral.
- The federal and state governments occasionally offer subsidies on power, taxes, and access to state-run industrial estates to SSI units.
Which are the Make In India Sectors?
Importance of Manufacturing Industries in India
Manufacturing units produce large quantities of output, after converting essential raw resources into more valued products. Manufacturing aids in transforming raw resources into finished products on a large scale, which helps in profit generation because finished goods are more expensive than raw materials.
The growth of a country’s manufacturing industry measures its economic strength, and India’s development is dependent on rapidly expanding and diversifying its industrial sector.
Impact of Make in India on Manufacturing Industries
During 2012 and 2019, India’s manufacturing sector’s gross value added (GVA) increased at a pace of 4.29%. The gross value added at the base point during the first quarter of 2019-2020 was ₹ 6,97,824 crores under the “Make in India” program.
The “Make in India” campaign drew worldwide attention to the Indian economy. The Indian government has also encouraged more investment and enhanced the business climate. Various types of assets and tax advantages granted to start-ups and MSMEs will promote long-term employment and improve the manufacturing sector’s quality. Make in India also focuses on making items with “zero defect and zero impact,” which assists in conserving the environment while also improving the quality of Indian products.
Piruz Khambatta, the Chairman of Rasna, is the Make in India brand ambassador.
The slogan of Make in India is “Zero Defect Zero Effect.”
The government should prioritize upskilling current employees and boosting students’ technological skills.