Launched by the government in 2014, the Make in India initiative aims to transform the country into a global design and manufacturing hub. It came as a timely response to the economic instability caused by the BRIC bubble burst. Investors around the world debated over the risks that India will have to face following the emerging markets bubble burst, and citizens assumed that the country was on the edge of a severe economic crisis. But the Make in India initiative launched against the backdrop of this economic uncertainty proved to be a medium to facilitate investment, attracting several stakeholders and partners. Make in India was made open to citizens and global investors for participation in the nation’s economic overhaul, and as expected, the program was supported by thousands of companies from all around the globe. It’s is not just a campaign to boost the domestic manufacturing industry, but is also a move targeted at the revamp of outdated policies and procedures.
The Make in India Strategy
Every strong national movement is backed by a great strategic plan that inspires people to step forward and participate. Such a campaign was essential for Make in India as well. However, this campaign had the key challenge of making investors understand the growth potential of India. The branding approach for Make in India was different from the existing methods of advertising, where statistical and visionary messages would meet the entire purpose of the campaign. To build the confidence of investors–both in India and abroad–a vast amount of detailed technical information was to be prepared, and the same had to be dispersed through the social media platforms for creating a global outreach. The Department of Industrial Policy & Promotion (DIPP) associated with a group of branding agencies to build the necessary infrastructure including help desk and a user-friendly website that will consolidate the entire set of information into a simple menu format. The team also developed 25 sector brochures which listed out all facts and figures and sector specific contact information; the brochures were made available in both print and digital format.
The sole concept of Make in India is based on participatory planning and achievement of the goals so created. So to give shape to the framework, DIPP sought participation from all union ministries, secretaries to the government, state governments, industry leaders, etc. Subsequently, a national level workshop was organized where stakeholders devised an action plan which would raise the contribution of manufacturing sector towards the overall GDP by 25%. Not to mention, these activities formed the greatest manufacturing initiative undertaken by the country in the recent past. Also, it clearly demonstrated the transformational capabilities of the public private partnership model.
Achieving the plan
Within a short period, the traditional frameworks were replaced with transparent and reliable systems that attracted investments, caressed innovation, and supported a state-of-the-art manufacturing infrastructure. The most notable progress in terms of direct foreign investment was witnessed in the railways, defense, and medical sector. A Make in India workshop was organized on 29th December, 2014 to prepare a 3 years action plan targeting 25 sectors. The ministry also collaborated with the World Bank group to identify the key areas of improvement, underscoring their business methodology. In addition to that, a 2 days workshop was conducted to bring up India’s ranking in terms of Ease of Doing Business, which at present is 130. An Investor Facilitation Cell (IFC) has also been set up as a part of the Make in India initiative, to assist potential investors in seeking regulatory clearances and to provide them with after-care support. Indian embassies around the world were tasked with the responsibility of disseminating information on the potential of investments in specific sectors. And with effect from October 2014, a special management team known as ‘Japan Plus’ was formed to deal with the investment proposals from Japan. A similar team named ‘Korea Plus’ was operationalized in June 2016 to offer an all-inclusive support to Korean companies desiring to enter the Indian market. The Centre also eased regulatory policies and opened up the sectors such as defense, railways, and space for investments. To take the initiate to the next level, six industrial corridors have also been set up across the country.
Sectors focused by Make in India
The government has identified 25 prime sectors that will initially be focused upon by the Make in India campaign. The likelihood of foreign direct investment in these sectors is considerably high and it will also create more employment opportunities in the country. With democratic conditions and superior manufacturing facilities going hand in hand, global companies would find Indian markets as risk-free destination to invest in. Given below are the 25 sectors in which are open to investments at present:
- Food processing
- IT and BPM
- Automobile components
- Renewable energy
- Roads and highways
- Media and Entertainment
- Textile industry
- Thermal power
- Chemical industry
- Oil and gas
- Tourism & Hospitality
- Defense manufacturing
- Electrical machinery
- Electronic systems
Key pointers about Make in India campaign
- The easy availability of labour and natural resources makes India a preferred manufacturing destination. With Asia emerging as an outsourcing hub of the world, India is expected to make a strong foothold in the manufacturing space.
- As per a study conducted on Make in India movement, India still needs to amend its labour laws to get the desired outcomes out of the Make in India campaign.
- Make in India follows the same principles of the Make in China campaign and both the flagship projects are locking horns with each other. China is a chief competitor of India when it comes to outsourcing and services business.
- Corruption and the administrative approaches of the previous governments were the two major problems that the country had to deal with. This has developed a negative sentiment among the global investors. However, the present government has vowed to remove all roadblocks in India’s path towards development.
- The Make in India campaign has received more than Rs.2,000 crore investment proposals since launch.