What is Make in India?
Make in India is a slogan that was used by our Prime Minister, Mr. Narendra Modi, on 25th September 2014 at Vigyan Bhawan Convention Center in New Delhi in the context of international marketing. The slogan was coined to encourage investment and manufacturing in India by attracting business from every corner of the world.
With this initiative, the government of India wants to create jobs, enforcement in the secondary and tertiary sector, to boost the economy of the nation, making India an independent country and give global recognition to the Indian economy.
This campaign intent to enforce the inflow of foreign direct investment in the country and also to improve services of loss making Government firm by making them partially privatized.
Objectives of Make in India
- To make India a renowned manufacturing hub.
- Inviting various companies from around the world and encourages them to set up their factories and expand their facilities in India.
- To use the talents and skills of Indian manpower for creating zero defect products.
- Creating jobs, especially for the young generation.
- Development of the Indian Economy.
- Getting global recognition.
The mission of Make in India is “Manufacture in India and sell the products worldwide.”
Why Make in India?
The primary reason for launching the Make in India scheme is to have a low inflation regime in the country, even when policies are predictable and consistent.
Also, the investors of Make in India will look for policy stability to trade, duties that are both import and export, and taxation.
Steps to make ‘Make In India’ successful
- Many programs will be launched specially for people from rural areas, also for the poor ones living in the cities for developing their skills.
- Under this campaign, twenty five key sectors have been selected, like telecommunication, automobile, tourism, etc.
- Providing high quality training to the individuals who are between 15-35 years of age. The training is provided in key areas like welding, nursing, masonries, painting, etc.
- After the training, a skill certificate shall be provided.
- Over 1000 training centers would be opened all over India for the next two years of commencement of this campaign.
Top corporate companies who attended Make in India Campaign:
- TATA Group
- Reliance Industries
Make in India initiative
The following are the major initiatives of make in India scheme:
- Invest India Cell: This cell is set up by the government and is also known as investor facilitation cell. It is the first reference point that guides foreign investors about the regulations and policies in India. This cell also assists them in procuring regulatory clearance.
- Consolidated Services and Quick Security Clearances: There is an e-Biz single window online portal in which all central government series are integrated. For states, they are instructed to provide self certificates to security clearance. Within three months, the Home Minister will provide all security clearances to investment proposals.
- Separate Portal Business Queries: An independent portal- http://www.makeinindia.com is created, which will answer all the queries from business entities. Answers of specific questions will be provided within 72 hours from the back end support team.
- Simplifying Various Policies and Laws: Under Make In India project, the time of various industrial license has been extended to three years. Not only this, but a vast number of defense items have also been de-licensed.
- Interacting With Users and Visitors: An initiative has been taken to track the visitors with reference to their geographical locations, interests, and studying their real-time behavior. Those visitors who are registered on the website or those who raised any queries will be provided with relevant information, guidelines, and newsletter.
- The Companies (Amendment) Act, 2015: According to the provisions of the Companies Act, 2013, the companies were required to have a minimum paid up share capital and a common seal. But the new act of 2015 has removed these requirements. Not only this, many other provisions of the act no. 18 of 2013 that are somehow related to Make In India campaign were also simplified. Other regulatory requirements were also simplified.
- Creation of Investor Facilitation Cell: An Investor facilitation cell has been created in ‘Invest India.’ The functions of this cell are to guide, assist, and handhold investors during the life cycle of the business.
- Setting Up the Department of Industrial Policy and Promotion: These departments have set up Japan Plus and Korea Plus. They are special management teams that facilitate fast track investment from Japan and Korea.
- Protection of Minority Investors: Under the campaign of Make in India, the minority shareholder like the shareholders of privately held companies have been given provided additional safeguards.
Hurdles in implementation
The following hurdles impede the growth and hamper the implementation of Make in India campaign:
- Land Acquisition: According to the participants of this campaign, the cost of acquisition of property is very high, and the process of acquiring the property is complex. A straightforward and robust land acquisition policy is required along with attractive R&R packages that will push the investment in infrastructure and manufacturing.
- Tax on Tax: The problem of tax on tax or multiple taxations was encountered before the enactment of Goods and Service Tax. The implementation of Goods and Service Tax has removed the issue of double taxation.
- Companies Act, 2013: The provisions of the Companies Act, 2013, were very rigid and created complexities in the formation of companies. These difficulties were removed by amending the Companies Act, 2015, but still, there are certain provisions that come in front of the smooth implementation of Make in India.
- Poor Governance: Formulating a scheme is never enough; implementation of the same with effecting governance is also required. Poor governance will impede the growth of the economy. Good governance is the need for the growth of the manufacturing sector and the proper implementation of Make in India.
Advantages of Make in India
- Creation of Job Opportunities: The primary purpose of Make in India is to create and provide a job for all, especially for the younger generation of the country. Jobs are created in sectors such as telecommunication, pharmaceuticals, tourism, etc. The younger generation of the country will be encouraged young entrepreneurs to use their innovative ideas for the development of the nation.
- Improvement in Areas: When a factory or an industry is set up in an area, it attracts labor, markets, and other people. With this, the financial status of the families which are living nearby to these areas will also improve. The area, its neighbouring places and the people living in these places will develop all together.
- Push to GDP: GDP means Gross Domestic Product. The value of its GDP calculates the development of a country. By the campaign of Make in India, the industries will develop in India, and this will create the flow of income. Sectors like exportation, architecture, textiles, communication, etc. will develop, and this, in turn, will make the economy of India stronger.
- Increasing the Value of Rupees: Make in India will be attracting more Foreign Direct Investment and which will result in increasing the value of Indian Rupee against the American Dollar. This will also reduce the effect of the hegemony of Dollar over Indian Rupee.
- A Shift From International Brand to Native Brands: Indians are attracted to international brands and do not pay attention to the indigenous brands, and this brings loss to indigenous producers. With Make in India, the indigenous products will get its recognition in the country, and these producers will start making profits.
- Technological Advancements: Make in India allows Indians to use the latest technology. This campaign encourages Indians to make new technology. Attention is also given to improving the skills of labor in the country.
- Simplifying Business: Make in India is an open invitation to manufacturers present in every corner of the world. For inviting as many manufacturers as possible, the government has removed many restrictions.
- Innovative Ideas From Young Generation: The young generation of India never gets an environment within the boundaries of the country to develop their skills and implement their innovative ideas in the country, and therefore they leave India for getting better opportunities. Make in India will provide the needed environment in the country itself and will take innovative ideas from the talented young generation of the country.
- Development of Rural India: When a factory is set up, it not only attracts labor but also attract development in that particular region. When a factory is set up in rural areas, then such areas are blessed with schools, healthcare facilities, markets, etc.
Disadvantages of Make in India
- Exclusion of Agriculture: India is an agrarian country with 61 percent of the total land under cultivation. But, Make in India encourages industrial development and excludes agriculture from it.
- Exploitation of Resources: Resources are limited in nature, while the demands of human beings have no end. Make in India focuses on developing manufacturing industries that consume many natural resources. This will endanger the survival of the population soon.
- Loss to Small Entrepreneurs: Make in India welcomes other countries in India, and when these countries set up its manufacturing unit in India, they attract the local people toward them, and this brings loss to small entrepreneurs who are already struggling to set up their position.
- Loss of Cultivable Land: The campaign focus on setting up of manufacturing unit in India. These manufacturing units can be set up at any place, and sometimes it also settles on those lands which are used for cultivation. Therefore, Make in India will destroy the worth of cultivable land.
- Loss to Other Sectors: The Indian economy has three sectors, named the Primary sector, Industrial or Secondary sector, and Service sector, but Make in India is emphasising on Secondary sector leaving all sectors behind. As the economy cannot develop by developing one sector only, complete attention on the manufacturing sector will not bring economic development to the country.
- Pollution: According to the data available, the Pollution Index of India is 76.50, and this level will surely increase after Make in India Campaign.