September 25, 2014, marks the revolutionary day in the history of the Indian market when our honorable Prime Minister Shri Narendra Damodardas Modi gave a green flag to the Make In India initiative just after months his party came into power in the Indian legislature. The main underlying objective beneath this initiative is to attract foreign investments across the globe which escalates India’s manufacturing sector to the level best by providing high skilled workforce along with cheap and affordable one-time investments in the infrastructure sectors.
The Make in India initiative took forward by India’s Prime Minister is much more than just an inspiring slogan, rather the campaign intended to boost the domestic manufacturing sector and attract foreign investors to invest in the Indian Economy and to develop India as a hub for the manufacturing, design, and innovation. It commends various overhaul in the outdated policies as per the need of the hour. By 2013, India’s growth rate came down to the lowest possible level in the past decade. Many questions were raised whether the world’s largest democracy was at risk due to its economics or it still held a substantial position. India was also kept under the category of Fragile Five, which meant the markets and emerging economies that highly depend on unreliable foreign investment trade to finance their internal growth and at the same time minimizing the use of in-house economic sectors production. To ensure proper flow of an initiative successfully, you need to set your target audience hence reaching out to a vast local and global target via social media and constantly keeping them updated about opportunities, reforms related to the initiative.
With an intention of reviving manufacturing businesses and highly emphasizing on the key sectors in India amidst the growing concern is that most entrepreneurs and other business people are moving out of the country on account of the low rank in ease of doing business ratings issued by The World Bank, so the Make in India initiative also aims at identifying select domestic companies having leadership in innovation and new technology for turning them into global champions. The focus remains on promoting green and advanced manufacturing and helping these companies to become an important part of the global value chain.
The manufacturing sector of India currently contributes just over 15% to the national GDP. The aim of the campaign is to grow this to a 25% contribution as seen with other developing nations in Asia. In this process, the government expects to generate jobs, attract many Foreign Direct Investments (FDI), and transform India into a manufacturing hub preferred around the globe. They tend to bolster manufacturing in India in quite a lot of ways like, the introduction of new and improved infrastructure through industrial corridors, industrial clusters and smart cities, and even providing cheap and skilled labor force.
The government has taken various measures for the success of this project like the Foreign Direct Investment policy has been liberalized. There were many changes proposed in various laws to overcome ministerial hurdles like the labor Reforms where The Department of Industrial Policy and Promotion (DIPP) had listed 20 labor laws and regulations that need to be changed, The Central Electricity Regulatory Commission had suggested de-nationalization of the coal sector and The Ministry of Environment and Forest has advised the courts for implementing laws that put forward a national green regulator.
This lucrative initiative not only showcases the 25 target sectors but also puts focus on the opportunities, low laying policies with ease of doing business for the foreign investors. A fresh equity of Rs 240,000 crore for the capitalization of the banks by 2018 was outlined by then Finance Minister Arun Jaitley that is meant solemnly for this initiative. This made India secure a top global position in the list of Doing Business by the World Bank as India was ranked 142nd among 190 nations when Prime Minister Narendra Modi took in-charge of the PMO in 2014. Four years of reform pushed up India’s rank to 100th in the World Bank’s “Doing Business” 2018 report whereas India now currently stands at the 63rd position on the list.
Prime Minister’s economic doctrine will work only if India is sincerely wedded to a strong self-help philosophy to become a global leader in manufacturing. Unfortunately, the spirit seems to be lacking among most principal stakeholders, industry, bureaucracy, and legislators. To ensure that Make in India becomes a reality, there is an urgent need to imbibe the spirit of Indian-ness and a sense of nationalism among our people that put the nation’s macro vision before personal micro objectives. For becoming a manufacturing nation, India has to quickly move beyond just oratory and create new and clear strategies with a favorable policy environment for manufacturing to take off.
The strong clarion call given by the Hon'ble PM recently about becoming Atmanirbhar (self-reliant) has been very well received by the different sectors and mostly implemented by the businesses including MSMEs to enable the resurgence of the Indian economy. Also, by this, the government has successfully built a new mindset for them to partner industry instead of working as a regulator in the economic growth of the country.