Basics

15 May 2024 13:34
It represents a comprehensive and unprecedented overhaul of outdated processes and policies.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, launched in 2014, represents a

departure from India's previous policy of self-sufficiency in the
1970s. Unlike the old approach, Make in India does not evoke
memories of the licence raj, self-sufficiency, or import-
substituting industrialization. It is significantly different,
• The Make in India initiative is a flagship program launched by

the Indian government in 2014 to boost domestic
manufacturing and transform India into a global manufacturing
hub.
• The campaign was launched to facilitate investment, foster
innovation, enhance skill development, protect intellectual
property & build best in class manufacturing infrastructure.
• Objectives:
• Increase the growth rate of the manufacturing sector to 12-14%
per annum.
• Create 100 million additional manufacturing jobs by 2022
(revised to 2025).
• Increase the manufacturing sector's contribution to GDP to
25% by 2025.
• Strategies:
• Streamlining Business Processes: Reducing bureaucratic
hurdles and simplifying regulations to make it easier for
companies to do business in India.
• Developing Infrastructure: Upgrading ports, roads, railways,
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• Developing Infrastructure: Upgrading ports, roads, railways,
and power generation to provide reliable and efficient
infrastructure for industries.
• Skilling the Workforce: Investing in skill development
programs to create a pool of skilled labour for the
manufacturing sector.
• Incentivizing Investments: Offering tax breaks, subsidies, and
other incentives to attract foreign and domestic investment in
manufacturing.
• Focusing on Key Sectors: Targeting specific sectors for
development, such as automobiles, aerospace, defence,
electronics, and pharmaceuticals.
Make for India.

• Made in India refers to a product that is assembled or
produced in India, even if the parts were manufactured abroad.
• It is basically a branding strategy to promote manufacturers
born out of Indian factors of production — land, labour, capital,
entrepreneurship, technology, etc.
• Make for India involves production for consumption in India
itself and focuses on manufacturing for the domestic market
What was the Rationale behind the Introduction of MII?

• MII was launched in 2014 as a sequel to earlier initiatives
designed to create a robust and competitive manufacturing
sector such as (NIP 2011, Liberalisation of Economy etc.).
• The Indian manufacturing sector’s growth was constrained by
factors such as inadequate physical infrastructure, a complex
and (corrupt) regulatory environment, and inadequate
availability of skilled manpower.
• MII was launched to raise the contribution of manufacturing in
• MII was launched to raise the contribution of manufacturing in
GDP from the stagnant 15% since the beginning of the 1980s to
at least 25% and to create 100 million additional jobs.
• In addition to the dynamic objectives of National Manufacturing

Policy (NMP) 2011, it was aimed “to transform India into a
global design and manufacturing export hub”. In other words,
MII for the world.
• In addition to the dynamic objectives of National Manufacturing

Policy (NMP) 2011, it was aimed “to transform India into a
global design and manufacturing export hub”. In other words,
MII for the world.
What are the Success and Failures of MII?

• Successes:
• India improved its ranking in the World Bank’s Ease of Doing
Business Index, from 142nd in 2014 to 63rd in 2020.
• India opened up various sectors to private and foreign
investment, such as defence, railways, civil aviation, etc.
• India witnessed growth in some sectors, such as automobiles,
electronics, renewable energy, textiles, etc.
• India became a leader in mobile phone manufacturing, with
over 200 units producing more than 225 million handsets in
2017-18.
Failures:
• India failed to create an international niche market for its
products and services.
• India did not achieve its targets of increasing the
manufacturing sector’s share in GDP to 25% by 2025, creating
•
manufacturing sector’s share in GDP to 25% by 2025, creating
100 million additional jobs, and boosting manufacturing growth
to 12-14% per annum.
• India faced challenges such as policy paralysis, lack of
competitive advantage, investment crunch, trade
protectionism, infrastructure bottlenecks, labour issues, etc.
Why did MII Fail to Achieve its Objectives?

• As a part of MII, the production-linked incentive (PLI)
scheme was introduced with a purpose to attract investments
in key sectors and cutting-edge technology; ensure efficiency
and bring economies of size and scale in the manufacturing
sector and make Indian companies and manufacturers globally
competitive.
• The additional goals are like the icing on the cake, but the
primary goal of creating jobs for our abundant workforce,
particularly women, has not been accomplished.
• This can only be achieved through labour-intensive
manufacturing. China’s example suggests the influence of
scale in manufacturing for more and more jobs.
So, What needs to be done for Job Creation?

• A well articulated National Industrial Policy over and above
PLI is needed for sectors such as toys, readymade garments
and footwear, etc.
• PLI is good for high-end manufacturing, but industrial policy is
the best bet for mass job creation.
• Industrial policy in a labour abundant country with average
educational achievements and skills is necessary to shape
productive job creation for the abundant factor.

How can National Industrial Policy help in Job Creation?
• Providing incentives and support for the existing and new
industries to expand their production, exports, and innovation.
This can increase the demand for labour and skills in the
industrial sector and generate more employment
opportunities.
• Developing infrastructure and connectivity, such as roads,
ports, power, and digital networks, that can facilitate the
movement of goods, services, and people. This can improve
the efficiency and competitiveness of the industries and create
more jobs in the construction and maintenance sectors.
• Enhancing the skills and capabilities of the workforce, through
education, training, and lifelong learning programs, that can
match the needs and demands of the industries. This can
improve the productivity and quality of the labour force and
create more jobs in the knowledge-based and high-value
sectors.
• Promoting entrepreneurship and innovation, through policies
and programs that encourage the creation and growth of
startups, small and medium enterprises, and social
enterprises. This can foster a culture of innovation and
creativity and create more jobs in the emerging and dynamic
sectors.
• Aligning the industrial policy with the social and environmental
goals, such as poverty reduction, gender equality, and climate
change mitigation. This can ensure that industrial development
is inclusive, sustainable, and responsible and creates more
jobs in the green and social sectors.
Conclusion
A National Industrial Policy is necessary to facilitate the
creation of productive employment opportunities for India’s
abundant labour force. However, the government has put the
new industrial policy (NIP ’23), which has been in the making
for over two years, on hold
for over two years, on hold
industrial policies, including the National Industrial Policy (NIP), should prioritize labor-intensive
sectors to promote mass job creation
From <https://www.civilsdaily.com/story/make-in-india-challenges-prospects/>
• It emphasizes the need for MII to continue focusing on excelling in

labor-intensive manufacturing for the overall betterment of India’s
economic landscape.
From <https://www.civilsdaily.com/story/make-in-india-challenges-prospects/>

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15 May 2024 13:34

It represents a comprehensive and unprecedented overhaul of outdated processes and policies.

The Make in India initiative, launched in 2014, represents a

• The Make in India initiative is a flagship program launched by

Make for India.

What was the Rationale behind the Introduction of MII?

• In addition to the dynamic objectives of National Manufacturing

• In addition to the dynamic objectives of National Manufacturing

What are the Success and Failures of MII?

Why did MII Fail to Achieve its Objectives?

So, What needs to be done for Job Creation?

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• It emphasizes the need for MII to continue focusing on excelling in

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