Make in India: Reference Note
Make in India: Reference Note
Make in India: Reference Note
REFERENCE NOTE
For the use of Members of Parliament NOT FOR PUBLICATION
No. 12/RN/Ref./March/2020
MAKE IN INDIA
Prepared by Smt. Seema Jain, Joint Director and Shri S. Holkhopao Baite, Additional Director
(9868970581) of Lok Sabha Secretariat under the supervision of Smt. Neelam Sethi, Director
(9810767647) and Shri R.C. Tiwari, Joint Secretary.
The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is
not for publication. This Service is not to be quoted as the source of information as it is based on the sources
indicated at the end/in the context.
MAKE IN INDIA
Introduction
The 'Make in India' initiative was launched by the Prime Minister of India, Shri
Narendra Modi in September 2014 as part of a wider set of nation-building initiatives.
It was devised to transform India into a global design and manufacturing hub and was
a timely response to a critical situation. By 2013, the much-hyped emerging markets
bubble had burst, and India’s growth rate had fallen to its lowest level in a decade.
The promise of the BRICS Nations (Brazil, Russia, India, China and South Africa) had
faded, and India was tagged as one of the so-called ‘Fragile Five’. Global investors
debated whether the world’s largest democracy was a risk or an opportunity. India’s
1.2 billion citizens questioned whether India was too big to succeed or too big to fail.
India was on the brink of severe economic failure, desperately in need of a big push.
The Make in India was launched against the backdrop of this crisis. It was a
powerful, galvanising call to action to India’s citizens and business leaders, and an
invitation to potential partners and investors around the world. Much more than
being an inspiring slogan, it represents a comprehensive and unprecedented overhaul
of outdated processes and policies. Most importantly, it represents a complete
change of the government’s mindset – a shift from issuing authority to business
partner, in keeping with Prime Minister's tenet of ‘Minimum Government, Maximum
Governance’.
The Make in India initiative has been built on layers of collaborative effort. The
Department for Promotion of Industry and Internal Trade (DPIIT) initiated this process
and the exercises resulted in a road map for the single largest manufacturing initiative
undertaken by a nation in recent history. They also demonstrated the
transformational power of public-private partnership, and have become a hallmark of
the Make in India initiative. This collaborative model has also been successfully
extended to include India’s global partners, as evidenced by the recent in-depth
interactions between India and the United States of America. In a short space of time,
the obsolete and obstructive frameworks of the past have been dismantled and
replaced with a transparent and user-friendly system. This is helping drive
investment, fostering innovation, developing skills, protecting Intellectual Property
(IP) and building best-in-class manufacturing infrastructure. The most striking
indicator of progress is the unprecedented opening of key sectors – including
railways, defence, insurance and medical devices – to substantially higher levels of
Foreign Direct Investment.
FDI is a major driver of economic growth and a source of non-debt finance for
the economic development of the country. Government has put in place an investor
friendly policy on FDI, under which FDI up to 100% is permitted on the automatic
route in most sectors/ activities. FDI policy provisions have been progressively
liberalized across various sectors in recent years to make India an attractive
investment destination. Some of the sectors include Defence, Construction
Development, Trading, Pharmaceuticals, Power Exchanges, Insurance, Pension,
Other Financial Services, Asset reconstruction Companies, Broadcasting and Civil
Aviation.
FDI policy reforms have contributed to India attracting record FDI inflows in the
last 5 years. Total FDI into India from 2014-15 to 2018-19 has been US $ 286
billion as compared to US $ 189 billion in the 5-year period prior to that (2009-10
to 2013-14). In fact, total FDI in 2018-19 i.e. US $ 64.37 billion (provisional figure)
is the highest ever FDI received for any financial year.
[Source: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1583294]
outdated policies and regulations. This reform is also aligned with parameters of
World Bank's 'Ease of Doing Business' index to improve India's ranking on it. This is
driven by reforms in the areas of Starting a Business, Construction Permits, Getting
Credit, Protecting Minority Investors, Paying Taxes, Trading across Borders,
Enforcing Contracts, and Resolving Insolvency.
As per World Bank’s Ease of Doing Business Report 2020 India ranks
63rd among 190 countries improving by 14 ranks from its rank of 77 in
2019. India has improved its rank in 7 out of 10 indicators and has
moved closer to international best practices. The 2020 edition of the
Report acknowledges India as one of the top 10 improvers, third time
in a row, with an improvement of 67 ranks in 3 years. It is also the
highest jump by any large country since 2011.
Intellectual Property Rights Policy was launched in May 2016. Its aim is to spur
creativity and stimulate innovation and ensure effective IPR protection in India.
The Patent (Second Amendment) Rules, 2019 published to reduce fees for
small entity/MSMEs for processing of patent applications under various sections
of the Patents Act, 1970 will incentivise MSMEs to file for more patents.
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3. Industrial Corridors
Industrial Corridors:
Delhi-Mumbai Industrial Corridor (DMIC)
Chennai-Bengaluru Industrial Corridor (CBIC)
Bengaluru-Mumbai Economic Corridor (BMEC)
Amritsar Kolkata Industrial Corridor (AKIC)
Vizag-Chennai Industrial Corridor (VCIC).
The Indian economy is likely to emerge as one of the leading economies in the
world, with an envisioned GDP of USD five trillion economy by 2024. Our vision is
to ensure that at least a contribution worth USD two trillion come from MSME
sector. To accomplish this, M/o MSME has taken many steps during the year for
technology advancement, skill development and job creation for empowerment of
MSMEs.
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Key initiatives
Apprenticeship Act modified: Employers to engage 10% of total workforce
as apprentices
328 Pradhan Mantri Kaushal Kendras (PMKK) set up (till December 22,
2017)
Number of ITIs increased: from 10,750 in May 2014 to 13,912 in December
2017
Five new Regional Vocational Training Institutes (RVTI) for women in skill
development established
11 lakh people trained under the Pradhan Mantri Kaushal VikasYojna
(PMKVY) and under Recognition of Prior Learning (RPL) 3.7 lakh people
have been accessed and certified in 2017.
Some key achievements across focused sectors under Make in India are as
below :
Sl. No. Sector Progress
10. IT and BPM Total FDI equity inflow in Computer software and
hardware sector saw a major growth from 2.3 Billion to
5.9 Billion
The IT-BPM industry is the largest private sector
employer – delivering around 4 mn jobs. The
industry accounts for more than 45% share in total
services export from India.
India in 2018-19 witnessed 1,70,000 net new hires in
the industry - a total of 6,00,000 digitally skilled human
resources.
India is the 2nd largest start-up ecosystem in the world
with 18,000+ start-ups recognized by the government
till May 2019.
The industry has more than 17,000 firms; 8 of which
1000+ are large firms with over 50 delivery locations in
India.
13. Media and FDI grew 1.8 times in Information & Broadcasting –
Entertainment from USD 1.9 billion (2010- 14) to 3.4 billion (2014-
18)
Print Media Advertisement Policy 2016, to promote
transparency and accountability
Policy Guidelines for empanelment of Private FM
radio stations
National Film Heritage Mission (NFHM) launched at
INR 597.41 crore
Single window clearances for
film shootings for foreign film makers in India
Film and Television Institute approved in Arunachal
Pradesh.
INR 1,000 Million allocated for community radio
stations.
14. Mining FDI grew 4.43 times in Mining sector- from USD 293
million (2010-14) to USD 1297 million (2014-18)
under new FDI policy, 100% FDI under automatic
route for sale of coal, for coal mining activities
including associated processing infrastructure.
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15. Oil and Gas Crude oil strategic storage of 5.33 Million Metric
Tonne (MMT) commissioned at Visakhapatnam,
Mangalore and Padur
IOCL refinery with a capacity of 15 Million Metric
Tonnes per annum (MMTPA) commissioned at
Paradip, Odisha
726 MW gas based thermal power project of ONGC
Tripura Power Company (OTPC) commissioned at
Palatana, Tripura
Hydrocarbon and Exploration Licensing Policy
(HELP) notified
INDMAX (lndaneMaximisation) technology
developed to maximize light distillates from refinery
residue
INR 100 crore “ONGC Startup fund” announced
17. Ports FDI grew 5 times in Sea Transport – from USD 0.5
billion (2011-14) to USD 2.5 billion (2014-17)
Highest ever capacity addition of 100.37 million
tonnesin FY 2016-17
Total turnaround time reduced by 14% and operating
margin of the major ports increased by 13%
56 new projects worth INR 9,490.15 crore awarded in
2016-17, capacity addition of
103.52 Million 12ones per annum (MTPA)
Sagarmala Project: 173 projects at an investment of
INR 4 lakh crore initiated; Six new mega ports and 26
port-rail connectivity projects identified
37National Waterways identified for development
21. Space India is the first nation in the world to reach Mars
successfully in the 1st attempt. The spacecraft was
called Mangalyaan
launch of defence imaging satellite “Microsat R” for
DRDO
Earth observation satellites like the Emisat, an
electronic intelligence satellite for DRDO, Cartosat-3,
radar imaging satellites RISAT-2B, and RISAT-2BR1
Country‟s second moon mission- Chandrayaan-
22. Textiles and FDI grew 2.5 times – from USD 0.5 billion (2010-14)
Garments to USD 1.5 billion (2014-18)
8 Apparel and garment manufacturing centresset up
North Eastern Region
Integrated Textile Office Complex set up at the Indian
Institute of Handloom Technology (IIHT) in Varanasi
India Handloom Brand launched
Special Textile Package of INR 6000 crore approved,
to attract investment of USD 11 billion and create one
crore jobs
200 new production units have come up in existing
textile parks in the last two years generating jobs for
11,000 persons
9.5 lakh people trained
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24. Tourism and Swadesh Darshan launched -13 theme tourist circuits
Hospitality identified, 5 pan- India mega circuits identified, 56
projects worth INR 4823.91 crore underway
PRASAD launched – 25 cities identified, 18 projects
worth INR 488.45 crore underway
12 Institutes of Hospitality Management has been
sanctioned for North East, 4 institutes operationalized;
Indian Culinary Institute setup at Tirupati
Medical tourism has been included in the Incredible India
campaigns
Make in India initiative has made significant achievements and has been
reviewed now, focusing on 27 sectors - 15 manufacturing sectors and 12 champion
service sectors under Make in India 2.0 programme. The Department for Promotion
1
Source; Annual Report 2019-20
Department for Promotion of Industry and Internal Trade
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2
RAJYA SABHA UNSTARRED QUESTION NO. 58 dated 18.07.2018.
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Conclusion
Manufacturing has emerged as one of the high growth sectors in India. The
Make in India campaign helps to place India on the world map as a manufacturing
hub and give global recognition to the Indian economy. The large investment in
manufacturing will bring in more capacity creation in the country. The tax reliefs
given to start ups and MSME‟s will boost sustainable employment and the quality of
startups in the design led manufacturing sector. Make in India mission is one such
long term initiative which will realize the dream of transforming India into
manufacturing hub. Make in India campaign also focuses on producing products with
zero defects and zero effects on environment.
REFERENCES
1. http://www.makeinindia.com
2. http://www.questjournals.org/jrbm/papers/vol5-issue2/A520106.pdf
3. https://pib.gov.in/Pressreleaseshare.aspx?PRID=1583294
4. https://pib.gov.in/PressReleseDetailm.aspx?PRID=1596654
5. https://cleartax.in/s/make-in-india
6. Rajya Sabha Unstarred Q. No. 1631 dated 01.08.2018.