This article is about the Make in India initiative, its benefits, advantages and disadvantages, and the step-by-step process of how companies and individuals can get involved.
Make in India is one of the most ambitious initiatives launched by the Government of India, designed to transform the country into a global manufacturing hub. Launched on September 25, 2014, by Prime Minister Narendra Modi, the initiative aims to attract investment, foster innovation, enhance skill development, and build world-class infrastructure to boost the manufacturing sector.
What is Make in India?
Make in India is a government initiative that aims to encourage both multinational and domestic companies to manufacture their products within India. The initiative seeks to increase the share of manufacturing in India’s GDP from 16% to 25%, creating millions of jobs and positioning India as a global manufacturing powerhouse.
The program covers 25 sectors, including automobiles, textiles, pharmaceuticals, IT, biotechnology, and defence manufacturing, and seeks to create an enabling environment for investment, ease of doing business and fostering innovation.
Key Objectives of Make in India
The key goals of the Make in India initiative include:
- Job Creation: The program aims to create millions of jobs for the country’s burgeoning workforce.
- Attract Foreign Direct Investment (FDI): By offering favourable conditions and incentives, the initiative seeks to attract significant foreign direct investment (FDI).
- Boost Manufacturing: The goal is to make India a global manufacturing hub by increasing the GDP share of the manufacturing sector.
- Enhance Innovation: By promoting research and development (R&D) in various sectors, Make in India aims to foster innovation and technological advancement.
- Infrastructure Development: Build world-class infrastructure and smart cities to support industrial growth and manufacturing.
Benefits of Make in India
The Make in India program has far-reaching benefits for the Indian economy and global investors. Below are the primary benefits:
- Job Creation: One of the most significant advantages of the Make in India initiative is its potential to create millions of jobs. By boosting manufacturing, the program seeks to address unemployment and provide opportunities to India’s young workforce.
- Increased Investment: The initiative has attracted substantial foreign direct investment (FDI), contributing to economic growth. Key sectors like automobiles, electronics, and textiles have seen significant investment, making India an attractive destination for global investors.
- Technological Advancements: The focus on innovation and technology under the Make in India initiative has led to advancements in key sectors such as defence, electronics, and biotechnology. It has also led to collaborations with global technology firms, bringing cutting-edge technology to Indian industries.
- Strengthening Infrastructure: To support industrial growth, Make in India promotes the development of infrastructure, including industrial corridors, smart cities, and transportation networks. This infrastructure improvement is vital for the smooth functioning of industries and for attracting more investors.
- Ease of Doing Business: The initiative has been instrumental in improving India’s global ranking in the Ease of Doing Business Index. By simplifying processes, reducing bureaucratic hurdles, and offering online clearances, Make in India has made it easier for companies to set up and operate in the country.
- Promotion of Indian Brands: The program encourages the growth of Indian brands and manufacturing units, boosting exports and making India a competitive player in the global market.
Sectors Covered Under Make in India
The Make in India initiative focuses on 25 sectors that have the potential to become global manufacturing hubs. Some of these key sectors include:
- Automobiles
- Textiles and Garments
- Aerospace
- Pharmaceuticals
- Information Technology and BPM
- Biotechnology
- Leather
- Food Processing
- Electronic Systems
- Defense Manufacturing
These sectors are given special attention with customized incentives, policies, and infrastructural support.
How to Apply for Make in India
Here’s how businesses and individuals can participate in the Make in India initiative:
Step 1: Understand Sectoral Opportunities
Businesses interested in Make in India should start by understanding which of the 25 identified sectors align with their expertise or business goals. Information on these sectors can be found on the official Make in India portal, makeinindia.com.
Step 2: Explore Investment Policies
Each sector under Make in India has different policies, incentives, and regulations. Businesses should study the specific guidelines for their industry. Policies like 100% FDI in many sectors make it easier for foreign businesses to invest in India.
Step 3: Register Your Business
Businesses must register their company with relevant government authorities, including the Ministry of Corporate Affairs and the Department of Industrial Policy and Promotion (DIPP). This can be done online via the government’s business portals.
Step 4: Apply for Required Approvals
Depending on the sector, businesses may need to apply for licenses and approvals from various government departments. This can include environmental clearances, manufacturing licenses, and sector-specific permits.
Step 5: Collaborate with Local Partners
Foreign companies collaborating with local Indian firms or suppliers can provide advantages like access to established networks, local market knowledge, and supply chains.
Step 6: Utilize Financial Incentives
Take advantage of the various financial incentives offered by the government under the Make in India program. These may include tax exemptions, subsidies, and easier access to credit.
Step 7: Build Infrastructure
For large-scale manufacturing, businesses should focus on setting up state-of-the-art manufacturing units in industrial corridors or special economic zones (SEZs) designated by the government.
Step 8: Innovate and Grow
Innovation is a key aspect of Make in India. Businesses should focus on R&D to develop cutting-edge products and technologies that can compete globally.
Advantages of Make in India
The Make in India initiative offers several advantages to both domestic and international businesses:
- Increased Market Access: By manufacturing in India, businesses gain access to one of the largest consumer markets in the world. India’s vast population offers tremendous opportunities for consumer-oriented industries.
- Incentives and Subsidies: The government provides several financial incentives, including tax rebates and subsidies, making it more profitable for companies to invest in India.
- Technological Growth: By encouraging innovation and R&D, the initiative fosters technological growth across various industries, positioning India as a leader in advanced manufacturing.
- Global Competitiveness: The Make in India program helps Indian industries become globally competitive by improving quality, productivity, and cost-efficiency.
- Improved Infrastructure: The development of industrial corridors, ports, and transportation networks as part of the Make in India initiative is improving the country’s infrastructure, making it easier for companies to operate.
Disadvantages of Make in India
Despite its many advantages, the Make in India initiative has its challenges:
- Slow Implementation: In some sectors, the implementation of the initiative has been slower than expected due to bureaucratic hurdles and delays in infrastructure development.
- Skill Gap: While the initiative promotes job creation, there is a significant skill gap in India’s workforce that needs to be addressed. Training programs are essential to equip the workforce with the skills needed for advanced manufacturing.
- Environmental Concerns: The rapid industrialization promoted by Make in India can have negative environmental impacts, such as pollution and deforestation, which must be managed with sustainable practices.
The Make in India initiative is a game-changer for the Indian economy, aiming to position India as a global leader in manufacturing and innovation. By offering incentives, simplifying regulations, and improving infrastructure, the program has successfully attracted significant investment and created employment opportunities.
Whether you’re a foreign investor or a domestic manufacturer, Make in India offers a wealth of opportunities for growth and expansion. To learn more about government initiatives and how they’re shaping different sectors, check out our article on the Pradhan Mantri Awas Yojana, where we explore how India is tackling the housing shortage and improving the lives of millions of citizens.
