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A strong manufacturing sector is critical for an economy like India, especially considering the huge employable workforce in the country and the need for self-sufficiency in a number of sectors to bring down the trade deficit. Manufacturing is urgently needed to provide livelihood opportunities to a huge chunk of the population outside of agriculture. The manufacturing sector supplies quality products across the supply chain, thereby fueling the growth and productivity of other sectors in the process.

Shri Narendra Modi, Hon'ble Prime Minister of India, launched the visionary Make in India programme in September 2014. The programme is aimed at transforming India into a global hub for manufacturing, research & innovation and an integral part of the global supply chain. The programme aimed at building confidence in India's strengths and potential as a manufacturing hub across internal and external stakeholders. It has led to a major rehaul of processes and policies to enhance ease of doing business in India. Indeed, this is the single largest manufacturing initiative by any country in the recent past.

Some of the initiatives undertaken under Make in India are as follows:.

1. Twenty five sectors have been selected under Make in India; a framework was developed to share a large amount of technical information on these sectors. Domestic and international audiences are constantly updated with latest information on opportunities, reform measures, etc.
2. FDI has been liberalised in some key sectors including Defence Manufacturing, Food Processing, Telecommunications, Agriculture, Pharmaceuticals, Civil Aviation, Space, Private Security Agencies, Railways, Insurance and Pensions and Medical Devices.
3. Several reforms undertaken to enhance ease of doing business and enhance FDI
4. Industrial corridors and smart cities are being built at a fast pace.
5. Intellectual Property Rights (IPRs) registrations are being accelerated and measures are being taken to cater to the training needs of the skilled workforce.

The manufacturing sector is expected to reach US$ 1 trillion by 2025 and contribute about 25% to India's GDP. Under the Make in India programme, indigenous manufacturing is expected to increase by 12-14% per annum over the medium term. As per the World Bank, manufacturing contributed about 16% to the country's GDP in 2016. This is on the higher side when compared with the global average of about 15% in 2015.

Manufacturing is expected to create 100 million additional jobs by 2025, considering how India is now one of the most attractive destinations for investments in this sector. Most leading companies including those of defence equipment, mobile phones and automobile brands have established or are looking to set up their manufacturing base in the country, which will have a positive impact on job creation.

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Source: DIPP

Impact:

Since its launch, Make in India has played a major role when it comes to improving ease of doing business in India. The various initiatives being undertaken have made a hugely positive impact on investor confidence. Some of the major achievements are as follows:

• Total FDI between April 2014 and March 2017 amounted to around 33% of cumulative FDI into India since April 2000. In 2015-16, FDI inflow crossed US$ 50 billion for the first time in any fiscal, and further in 2016-17, FDI reached a record figure of US$ 60 billion. Cumulative FDI inflows from April 2000 to March 2018 had reached US$ 546.45 billion (including equity inflows, invested earnings and other capital). In 2017, India retained its position as the world's most attractive destination for greenfield FDI.
• Measures to improve business confidence have led to progressive improvements in India's rank in the World Bank's ease of doing business rankings from 142 in 2014 to 100 in 2017.
• Five industrial corridors and 21 new nodal industrial cities are being developed to boost industrial growth.
• The Insolvency and Bankruptcy Code 2016 has consolidated all rules and laws pertaining to insolvency into one legislation, thereby bringing India's bankruptcy code in step with global best practices.
• The Government of India introduced a holistic National Intellectual Property Rights (IPR) policy in May 2016 in order to spur creativity and innovation in the Indian economy. During April - October 2017, 45,449 patents and 15,627 copyrights were filed in India, out of which 9,847 patents and 3,541 copyrights were granted.

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Source: www.doingbusiness.org

References:

• http://dipp.nic.in/sites/default/files/FDI_FactSheet_29June2018.pdf
• http://www.makeinindia.com/home
• http://pib.nic.in/newsite/PrintRelease.aspx?relid=174892
• http://mofapp.nic.in:8080/economicsurvey/pdf/120-150_Chapter_08_Economic_Survey_2017-18.pdf

Last updated: September, 2018