On 25th September 2024, “Make in India”, the flagship programme of the Government of India (GoI), completed a decade (10 years) of empowering India to become a global manufacturing hub. It has played a crucial role in boosting domestic manufacturing, fostering innovation, enhancing skill development, and facilitating foreign investment.
- Prime Minister (PM) Narendra Modi launched the “Make in India” initiative on 25th September, 2014 at Vigyan Bhawan in New Delhi, Delhi.
- It is being implemented by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry (MoC&I).
Note: Under Make in India 2.0, it focuses on 27 sectors including, 15 sectors under the manufacturing sectors, which is coordinated by DPIIT, MoCI and 12 sectors under the service sector, which is coordinated by Department of Commerce, MoC&I.
Key Progress under Make in India initiative:
FDI Reforms:
Foreign Direct Investment (FDI) Reforms have played a pivotal role in promoting India’s industrial growth. Since 2014, India’s FDI inflow has increased exponentially by 119%, from USD 304 billion (2004-14) to USD 667.4 billion (2014-24). This investment inflow spans across 31 states and 57 sectors, promoting growth across diverse industries.
- Currently, most sectors, except some strategically important sectors, are open for 100% FDI under the automatic route.
- FDI equity inflows into the manufacturing sector have increased by 69% over the last decade (2014-24), from USD 97.7 billion (2004-14) to USD 165.1 billion (2014-24).
PLI Scheme:
The Production Linked Incentive (PLI) scheme was launched in 2020 across 14 key manufacturing sectors, with budget allocation of Rs 1.97 lakh crores. The scheme aims to create 60 lakh new jobs and an additional production of 30 lakh crore during the next 5 years.
- Since 2020, the PLI schemes have resulted in Rs 1.32 lakh crore (USD 16 billion) in investments and given a significant boost in the manufacturing sector of Rs 10.90 lakh crore (USD 130 billion) as of June 2024.
- So far, more than 8.5 lakh jobs have been created directly or indirectly due to this initiative.
Exports & Employment:
India’s merchandise exports have breached the mark of USD 437 billion in Financial Year 2023-24 (FY24). Exports have increased, with an additional Rs 4 lakh crore generated due to the PLI schemes and also employment in the manufacturing sector increased from 57 million (in 2022-23) to 64.4 million (in 2017-18).
Ease of Doing Business:
Over the last decade, India has made significant improvement in the ease of doing business, which is evident from the fact that India has improved its ranking from 142nd (in 2014) to 63rd (in 2019) in the World Bank’s Doing Business Report.
- Moreover, more than 42,000 compliances have been reduced and 3,800 provisions decriminalized.
- Also, the Government of India (GoI) has introduced certain key reforms such as the Insolvency and Bankruptcy Code (IBC), 2016; the Goods and Services Tax Act, 2017 and the Jan Vishwas (Amendment of Provisions) Act, 2023. Such reforms have been instrumental in making India a global business hub.
Key Initiatives:
Semiconductor Ecosystem Development:
In 2021, the Union Cabinet chaired by PM Narendra Modi had approved the Semicon India Program, with the budget outlay of Rs 76,000 crore.
- This initiative aims to provide a boost to semiconductor and display manufacturing by facilitating capital support and fostering technological collaborations.
NSWS:
The National Single Window System (NSWS) was launched in September 2021 as a single digital platform for approvals and clearances. The platform has simplified investor experience by integrating clearances from 32 ministries/ departments and 29 states/ Union Territories (UTs) facilitating rapid approvals.
PM GatiShakti:
PM GatiShakti National Master Plan (NMP), a strategic initiative of Government of India (GoI) launched on 13th October, 2021, aimed at achieving Aatmanirbhar Bharat and a USD 5 trillion economy by 2025 through the creation of multimodal and last-mile connectivity infrastructure.
- The scheme aims to promote holistic planning and coordination among 36 Ministries/Departments, integrating progress, and synchronizing project implementation.
- The scheme is a transformative approach driven by 7 sectors, for economic growth and sustainable development: Railways, Roads, Ports, Waterways, Airports, Mass Transport, and Logistics Infrastructure.
National Logistics Policy:
The National Logistics Policy (NLP) was launched on 17th September, 2022 and was introduced to compliment the PM Gatishakti NMP by focusing on improving the soft infrastructure of the logistics sector in India. It aims to promote economic growth and competitiveness through an integrated, efficient and sustainable logistics network by leveraging advancing technology, enhanced processes, and skilled manpower.
- The key targets of the scheme include reducing logistics costs, improving India’s Logistics Performance Index ranking to among the top 25 countries by 2030, and developing a data-driven decision support system.
Industrial Corridors & Infrastructure:
Under the National Industrial Corridor Development Programme (NICDP), 11 industrial corridors have seen the approval of 12 new projects with an estimated investment of Rs 28,602 crore. These corridors enhance India’s competitiveness by providing world-class infrastructure.
ODOP initiative:
The One-District-One-Product (ODOP) aims to facilitate the promotion and production of indigenous products from every district in India. So far, the initiative has fostered local economic development, with Unity Malls being set up in 27 states across the country, to provide platforms for these unique products.
Startup India initiative:
It was launched on 16th January, 2016, has introduced various programs aimed at supporting entrepreneurs, building a robust start ecosystem. As of 25th September 2024, India emerged as the 3rd largest ecosystem in the world with over 1.48 lakh DPIIT recognised startups, which have created more than 15.5 lakh direct jobs.
Key Achievements under Make in India:
i.Vande Bharat trains, India’s 1st indigenous semi-high speed trains, introduced under ‘Make in India’ initiative. At present, there are 102 Vande Bharat train services (51 trains) are operational across Indian Railways.
ii.India has achieved major milestones in defence production, for instance, the launch of Indian Naval Ship (INS) Vikrant, India’s 1st domestically made aircraft carrier. In FY24, India’s defence production increased to Rs 1.27 lakh crore, with exports reaching more than 90 countries.
iii.The electronics sector in India has witnessed rapid growth, reaching USD 155 billion in FY23. Production has increased from USD 48 billion (in FY17) to USD 101(in FY23), attributed mainly by mobile phones, which now account 43% of total electronics production in India.
- India is the 2nd largest manufacturer of mobile phones in the world and has significantly reduced its dependence on smartphone imports as now 99% of smartphones are manufacturing domestically.
iv.India registered merchandise exports worth USD 437.06 billion in FY24, which reflects India’s emerging role in global trade.
v.The textile industry has generated 14.5 crore job opportunities across the country.
MoC&I Introduced BRAP 2024 to Strengthen Make in India Initiative
On 30th September 2024, the MoC&I introduced the 7th Business Reforms Action Plan (BRAP 2024) to further strengthen the Make in India initiative.
- It aims to establish a seamless business regulatory framework across the country, enhancing the Ease of Doing Business (EoDB).
- The new initiative will be led by the DPIIT under the MoC&I and will introduce next-generation reforms to address the evolving needs of both businesses and citizens.
About BRAP 2024:
i.It is alignment with key GoI initiatives such as Reducing Compliance Burden (RCB) and Decriminalisation and also merging elements from the World Bank’s B-READY program.
ii.It will introduce an innovative assessment methodology that uses evidence and feed-back based approaches to create a more comprehensive and dynamic regulatory environment.
- It aims to reduce approval time, integrate online service delivery, and initiatives like NSWS and PM Gati Shakti to make the regulatory environment more transparent, efficient, and dynamic.
iii.It will cover various critical sectors like: labor, environment, taxes, land administration, utility permits, inspection and construction,Information and Communications Technology (ICT) adoption and process reengineering through the Time and Document Study (TDS) to ensure robust and more efficient government-to-business service delivery.
Background:
i.It was initially launched in 2014-15 and since then, 6 editions of BRAP have successfully reshaped the business landscape of India, exhibiting the spirit of competitive federalism.
ii.It has emphasized on transparent service delivery, which ensures that both businesses and citizens have access to clear information on procedures, fees and timelines.
About Ministry of Commerce and Industry (MoC&I):
Union Minister- Piyush Goyal (Constituency- Mumbai North, Maharashtra)
Minister of State (MoS)- Jitin Prasada (Constituency- Pilibhit, Uttar Pradesh, UP)
