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MAKE
IN INDIA By- Prakhar Singhal 11th C Business Studies MAKE IN INDIA SCHEME
The Make in India initiative was launched by Prime Minister in
September 2014 as part of a wider set of nation-building initiatives. Make in India was to create and encourage companies to develop, manufacture and assemble products made in India. It’s aimed was to transform India into a global design and manufacturing export hub. By 2013, the much-hyped emerging markets bubble had burst, and India’s growth rate had fallen to its lowest level in a decade. So this scheme was a response for this critical situation. Functions/Objectives of Make In India It stated some objectives such as: 1. Boost Manufacturing Sector: Increase the manufacturing sector's growth rate to 12-14% per annum to enhance the sector’s share in the economy. 2. Job Creation: Generate employment opportunities by creating 100 million additional manufacturing jobs in the economy by 2022. 3. Increase Manufacturing GDP Contribution: Increase the share of manufacturing in the country's Gross Domestic Product (GDP) from the current 16-17% to 25% by 2025. 4. Attract Foreign Direct Investment (FDI): Promote India as a top investment destination and attract foreign companies to invest in manufacturing in India. After the launch, India gave investment commitments worth ₹16.40 lakh crore and investment inquiries worth of ₹1.5 lakh crore between September 2014 to February 2016. The Make in India initiative focuses on 27 key industries under the manufacturing and services sector including automotive, electronics system design manufacturing, pharmaceuticals, roads, food processing and Advantages and disadvantages of Make In India Scheme ADVANTAGES DISADVANTAGES • Creating new job opportunities. Negligence of Agriculture: With the introduction of • Increasing GDP via accelerating industrial sectors, the agriculture in India will be economic growth. neglected somewhat. Depletion of Natural Resources: projects consume • The rupee will rise as FDI inflows the natural resources such as water, land etc. on a large increase. scale. • Small manufacturers will benefit, Loss for Small Entrepreneurs: If no foreign investment mainly if foreign investors invest is not done in to them. in them. Interest in International Brands: the brand value of Indian merchandise will definitely increase, then the • When countries invest in India, Indian upper class will get addicted to the foreign label. they bring with them cutting-edge Pollution: This scheme might be economically but it will technology in a variety of have an inverse effect ecologically. industries. Bad Relations with China: it is possible for the • Setting up manufacturing centers situation to become worse among the two economically and companies in rural areas can growing countries because India has the advantage of also help these communities young and skilled workforce over China which will expectedly take make in India to new heights in the near thrive. Make In India Scheme Make in India is a major national programme of the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country. There are some companies which comes under this Make In India concept: • Adani Group: Involved in sectors such as infrastructure energy (Adani Power), ports, and logistics. • Maruti Suzuki: India's largest automobile manufacturer, known for producing cars in collaboration with Suzuki of Japan. • Tata Group: A diversified conglomerate with significant interests in automobiles (Tata Motors), steel (Tata Steel), IT services (TCS), and more. • Mahindra Group: Known for automobiles (Mahindra & Mahindra), IT services (Tech Mahindra), aerospace, and agribusiness. • Infosys: A multinational corporation providing business consulting, information technology, and outsourcing services. • Maruti Suzuki: India's largest automobile manufacturer, known for producing cars in collaboration with Suzuki of Japan. Case study- Flipkart Issues and underlying issues: 1. Operational Challenges: Flipkart faced difficulties during its Big Billion Sale due to site traffic management and supply chain issues, which resulted in customer dissatisfaction. 2. Customer Satisfaction: While Flipkart initially focused on customer satisfaction through prompt issue resolution and innovative payment options, its reputation suffered after the Big Billion Sale due to execution failures. 3. Trust and Reputation: The incident during the Big Billion Sale jeopardized Flipkart's goodwill, necessitating damage control measures such as apologies and explanations to regain customer trust. 4. Capacity Planning: Flipkart failed to anticipate and manage the surge in demand effectively during the Big Billion Sale, leading to technical glitches and inventory shortages. 5. Execution and Logistics: Despite having robust backend systems, including warehouse and inventory management, operational execution during peak periods proved inadequate. 6. Innovate in Payment and Delivery Options: Expand payment options beyond cash-on-delivery and credit cards to include digital wallets, UPI, and other emerging payment methods to cater to diverse customer preferences. Introduce faster delivery options and improve shipment tracking capabilities to enhance transparency and reliability in the delivery process. 7. Establish a proactive crisis management plan to quickly address any issues like website crashes during high-demand periods. Communicate transparently with customers during Case Study- Flipkart Solutions: 1. Strengthen Capacity Planning and Logistics: Detailed Demand Forecasting Implement advanced analytics to forecast demand accurately based on historical data and market trends. 2. Scalable Infrastructure: Invest in scalable IT infrastructure to handle peak loads and prevent website crashes. Enhanced Inventory Management Improve coordination with suppliers and enhance inventory visibility to mitigate stockouts. 3. Enhance Customer Experience: Continuous Improvement in Service Focus on service excellence beyond discounts, ensuring timely delivery and quick resolution of customer issues. Personalized Offers and Communication Leverage customer data to tailor promotions and offers, enhancing the "surprise and delight" factor while ensuring clear and transparent communication. 4. Rebuild Trust and Reputation: Proactive Communication: Develop a crisis communication plan to address potential issues in real-time, keeping customers informed and reassured during high-demand events. Customer Feedback Mechanism: Implement robust feedback mechanisms to gather insights and address pain points proactively. 5. Implementation Plan: Technology and Infrastructure Upgrades o Allocate budget for IT upgrades, conduct feasibility studies, and implement scalable solutions. Enhanced Customer Service Initiatives o Continuous improvement with immediate action on feedback. Train customer service teams, integrate feedback loops into operations, and refine service protocols. By addressing these critical issues through strategic investments in infrastructure, demand forecasting, customer communication, operational efficiency, and proactive public relations, Flipkart can continue to enhance its market position and maintain customer trust. These solutions not only address the immediate challenges but also lay a