What PM Modi’s “Make in India” initiative is about?
The first reference of Make in India was made by the Prime Minister of India Narendra Modi in his maiden speech from the ramparts of the Red Ford in New Delhi from where he appealed all the people world-over, “Come, make in India”, “Come, manufacture in India” and just after 40 days of it, he launched it on 25th September 2014. As a comprehensive set of nation-building initiatives, the “Make in India” programme has been devised to transform India into a global manufacturing hub.
What was the need of Make in India?
In the year 2013, India recorded its lowest growth rate in a decade, the beam of BRICS nations had dimmed, and India was tagged with the so-called “Fragile Five”. It became a subject of debate among the Global investors that whether the investment to the world’s largest democracy was a risk or opportunity. To conclude, India was on the brink of severe economic failure.
Objectives of Make in India
Its primary purpose is to encourage national as well as multi-national companies to manufacture in India. Another main goal is to focus on skill enhancement and job creation in 25 sectors of the economy. The initiative also aims to achieve a high level of standards and minimum impact on the environment.
The following targets have been cited as the achievable objectives in the Make in India programme:
- To increase the share of manufacturing sector in the country’s GDP from 16% to 25% by 2022.
- Creation of 100 million additional jobs in manufacturing sector by 2022.
- To create appropriate skills among urban poor and rural migrants for inclusive growth.
- To enhance the global competitiveness of the Indian manufacturing sector.
What is the plan?
The make in India programme incorporates a comprehensive plan to attract the national and multinational investors by formulating some attractive policies like – ease of doing business, enhancing the limits of FDI, safeguarding the intellectual property rights, labour reforms, land reforms, creation of economic zones like Delhi-Mumbai Industrial Corridor (DMIC) and many more.
The main focus of the Make in India programme is in the following 25 sectors of the economy:
- Automobile components
- Defence manufacturing
- Electronic system
- Electrical Machinery
- Food Processing
- Information Technology and Business Process Management
- Media and Entertainment
- Oil and Gas
- Ports and Shipping
- Renewable Energy
- Roads and Highways
- Space and Astronomy
- Textiles and Garments
- Tourism and Hospitality
- Thermal Power
Except for News Media (26%), Defence (49%) and Space (74%), in all the other sectors 100% FDI is permitted.
In a nut-shell, Make in India programme is a litmus test for the economic upheaval of the country. It also envisages the ethics of manufacturing as the PM Modi visions in his slogan – “Zero Defect, Zero Effect” which signifies that the mechanism of production wherein products have no defects, and the process of manufacturing has zero adverse ecological and environmental effects.