Home   »   Daily Current Affairs   »   Make in India

Eight Years of Make in India

About Make in India Initiative

  • Launch: Make in India was launched on 25th September 2015 with an aim of transforming the country into a leading global manufacturing and investment destination.
  • Ministry: Make in India  is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
  • Approach: The policy approach was to create a conducive environment for investments, develop a modern and efficient infrastructure, and open up new sectors for foreign capital.
  • Objectives: “Make in India” had three stated objectives:
    • To increase the manufacturing sector’s growth rate to 12-14% per annum.
    • To create 100 million additional manufacturing jobs in the economy by 2022.
    • To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (later revised to 2025).

 

Stats IQ: India’s Manufacturing Sector

  • Contribution to GDP: 16-17% of GDP.
  • Employment generation: 6.24 crore in 2019-20 (14% of the labour force).
  • Share in exports: 65% of Indian exports are manufactured goods.
  • Global rankings:
    • India is the fifth largest manufacturer in the world and accounts for roughly three per cent of global manufacturing output.
    • According to Global Manufacturing Risk Index 2021, India has emerged as the second most sought after manufacturing destination across the world.

 

Make in India: Key Initiatives and Measures

  • Attracting foreign investments: To attract foreign investments, Government of India has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
    • FDI inflows in India stood at US $ 45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for eight years. The year 2021-22 recorded the highest ever FDI at $83.6 billion.
  • Production Linked Incentive (PLI) scheme: It was launched in 2020-21 across 14 key manufacturing sectors. It incentivizes domestic production in strategic growth sectors where India has comparative advantage.
  • Ease of doing business:
    • Several reforms and liberalization of guidelines have been undertaken to reduce unnecessary compliance burden and bring down cost.
    • Compliance burden reduced through simplification, decriminalization, and digitization.
    • National Single Window System (NSWS) was launched in 2021 to provide a single digital platform to investors for approvals and clearances.
  • Public Procurement (Preference to Make in India) Order, 2017: The policy aims at encouraging domestic manufacturer’s participation in public procurement activities over entities merely importing to trade or assemble items.
  • PM Gati Shakti– National Master Plan: For multimodal connectivity to manufacturing zones in the country. This will ensure logistical efficiency in business operations through the creation of infrastructure that improves connectivity.
  • The One-District-One-Product (ODOP) initiative: For facilitating promotion and production of the indigenous products from each district of the country and providing a global platform to them.
  • Toy manufacturing: Several strategic interventions have been taken by government to promote domestic toy manufacturing, such as:
    • Increase of Basic Custom Duty from 20% to 60%, implementation of Quality Control Order, and mandatory sample testing of imported toys.
    • Several promotional initiatives like The India Toy Fair 2021, Toycathon 2021, Toy Business League 2022 to encourage innovation and new-age design to suit global requirements.
    • India’s export of toys registered tremendous growth of 636% in April-August 2022 over the same period in 2013.
  • Defence manufacturing:
    • FDI in the defence sector is allowed up to 74% through automatic route (from earlier 49%).
    • Defence Acquisition Procedure (DAP) – 2020: encourages indigenous designing and manufacturing of defence items.
    • Innovations for Defence Excellence (iDEX): Launched in 2018, which aims at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, start-ups, individual innovators, R&D institutes & academia.
    • Defence Production and Export Promotion Policy 2020 (DPEPP): to provide a focused, structured, and significant thrust to defence production capabilities of the country for self-reliance and exports.
Make in India
Make in India

Sharing is caring!

Download your free content now!

Congratulations!

We have received your details!

We'll share General Studies Study Material on your E-mail Id.

Download your free content now!

We have already received your details!

We'll share General Studies Study Material on your E-mail Id.

Incorrect details? Fill the form again here

General Studies PDF

Thank You, Your details have been submitted we will get back to you.

Leave a comment

Your email address will not be published.