Make in India is an initiative launched by the Government of India to encourage multi-national, as well as national companies to manufacture their products in India. It was launched on 25 September 2014, by Prime Minister Narendra Modi . The program was though and initiated in time when India’s growth rate had fallen to its lowest level in a decade.
After the introduction of the programme, in the year 2015. India emerged, as one of the top destination globally for foreign direct investment (FDI), surpassing the United States of America as well as the People's Republic of China. As per figures India received US$63 billion in FDI In the year 2015.
The major objective behind this initiative is to focus on job creation and skill enhancement in 25 different sectors of the economy. The initiative aims at increasing the GDP and tax revenues in the country, by producing products that meet high quality standards, and minimising the impact on the environment.
Apart from Increasing the GDP and tax revenues program also focuses on Fostering innovation, protecting intellectual property, and enhancing skill development.
The initiative lays emphasis on the holistic development of following twenty-five sectors of the economy:
· Information Technology and Business Process Management
· Media and Entertainment
· Tourism and Hospitality
As per the new Govt. Policy 100% FDI is permitted in all the above sectors, except for space (74%), defence (49%) and news media (26%).
Key highlights of the programme from inception.
The government has said that it has, so far, received Rs 1,10 lakh crore worth of proposals from various companies that are interested in manufacturing electronics in India.
Companies like Xiaomi, Huawei have already set up manufacturing units in India, while iPhone and iPad manufacturer is looking to establish their manufacturing unit soon.
Recently, Lenovo also announced that it has started manufacturing Motorola smartphones in a plant near Chennai.
In a report released by the World Bank, about a state-wise bifurcation based on ease of doing business, Gujarat was ranked as the top state, followed by Andhra Pradesh and Jharkhand.
The investor facilitation cell of Make in India under the programme, Invest India is rated as one of the world’s most effective investment promotion agencies by UNCTAD. The platform handholds investors with sector-specific inputs, location identification, expediting regulatory approvals, facilitating meetings with relevant government and corporate officials and more.
PM Narendra Modi and Japan’s Prime Minister Shinzo Abe had, in 2014, announced a partnership to invest $33.5 billion over the next five years through both private and public investment.
Given the significant growth of India’s pharma industry, Germany-based Uhlmann Pac-Systeme GmbH & Co. KG in May announced its intention to invest 5 million euros to expand in India.
According to the WESP Report 2016, India will become the world’s fastest growing economy by 2016, with a growth rate of 7.3 percent in 2016 and 7.5 percent in 2017. The expected growth rate in 2017 was estimated at 7.2 percent in 2015.
The Make in India initiative has showcased India as a potential manufacturing hub in the eyes of the world. Make in India so far has had over 170 global and Indian manufacturers committing investments worth a total of $90 billion.
