Make in India is a campaign launched by the Government of India to boost the manufacturing sector and create jobs for the country's growing population. The idea behind this initiative is to attract foreign investment in the manufacturing sector and promote Indian-made products.
In this comprehensive guide, we will cover all aspects of the Make in India campaign, including Make in India products, the Make in India initiative, and how Bajaj Finserv Business Loan can help you start or expand your manufacturing business.
Understanding the Make in India initiative
- Launched in September 2014, the Make in India initiative set ambitious targets to increase the contribution of manufacturing to India's GDP from 16% to 25%.
- It aimed to create 100 million additional jobs in the manufacturing sector by 2022.
- As of 2022, the initiative has facilitated the approval of over 240,000 investment proposals, attracting over $75 billion in Foreign Direct Investment (FDI).
- Various sectors have witnessed significant growth under the initiative, with the automobile sector growing at an average annual rate of 7.9%, and the electronics sector at 27.3%.
- The initiative has also led to a notable increase in the ease of doing business in India, with the country's ranking in the World Bank's Ease of Doing Business Index improving from 142 in 2014 to 63 in 2020.
- Make in India has spurred innovation and entrepreneurship, with initiatives such as Startup India and Skill India complementing its objectives.
- It has contributed to India's emergence as one of the world's fastest-growing economies, with GDP growth averaging around 7% annually in recent years.
Make in India products
Under the Make in India campaign, the goal is to capitalise on the country's strengths and promote manufacturing in sectors where India has a comparative advantage.
Products manufactured under the Make in India initiative include mobile phones, automobiles, textiles, defence equipment, electronics, and more. These products are made in India with state-of-the-art technology, high-quality raw materials, and expert artisanship, making them desirable for Indian consumers as well as international buyers.
Benefits of Make in India
The Make in India campaign offers several benefits for businesses and the country as a whole. Some of these benefits include:
- Reduction in imports and increased export opportunities
- Promotion of Indian-made products
- Job creation and employment opportunities
- Strengthening of the manufacturing sector and the overall economy
- Increased foreign investment and financial support for manufacturing
Make in India – Schemes
Under the Make in India initiative, several schemes have been implemented to support and promote manufacturing growth across various sectors. These schemes aim to enhance competitiveness, attract investment, and foster innovation. Here are some key schemes:
- Production Linked Incentive (PLI) Scheme: Introduced to boost domestic manufacturing in sectors such as electronics, pharmaceuticals, and automobiles by providing financial incentives based on incremental production.
- National Manufacturing Competitiveness Programme (NMCP): Aims to enhance the competitiveness of manufacturing industries through various interventions such as technology upgradation, skill development, and access to finance.
- Skill India Programme: Focuses on enhancing the skillsets of the workforce to meet the evolving demands of the manufacturing sector and promote entrepreneurship.
- Startup India: Designed to nurture and support startups, fostering innovation and entrepreneurship in various manufacturing-related fields.
- Invest India: A national investment promotion and facilitation agency that assists investors in setting up and doing business in India, providing information, guidance, and handholding support.
- Digital India: Aims to transform India into a digitally empowered society and knowledge economy, facilitating the adoption of digital technologies in manufacturing processes and operations.
- Smart Cities Mission: Seeks to develop 100 smart cities across India with modern infrastructure and amenities, fostering sustainable urban development and attracting investment in manufacturing and related industries.
- Ease of doing business reforms: Various reforms have been implemented to simplify regulatory processes, reduce bureaucratic hurdles, and improve the overall business environment to encourage investment and facilitate manufacturing growth.
Make in India – Objectives
The Make in India initiative was launched with several key objectives aimed at transforming India into a global manufacturing hub and boosting economic growth. Here are the main objectives:
- Foster a conducive environment for investment, innovation, and entrepreneurship in manufacturing.
- Increase the share of manufacturing in India's GDP to 25% and create 100 million additional jobs by 2022.
- Streamline regulatory processes and improve the ease of doing business to attract both domestic and foreign investment.
- Enhance infrastructure development to support manufacturing activities and facilitate efficient logistics.
- Promote sustainable manufacturing practices and ensure inclusive growth across all sectors and regions.
- Encourage skill development initiatives to build a competitive workforce capable of meeting industry demands.
- Facilitate technology transfer and adoption to enhance productivity and competitiveness in manufacturing industries.
- Strengthen partnerships between the government, industry, and academia to drive innovation and research in manufacturing.
Make in India – Progress
The Make in India initiative has made significant progress since its launch, driving positive changes in India's manufacturing landscape. Here are some key indicators of its progress:
- Increased foreign direct investment (FDI) inflows in key sectors such as automotive, electronics, and defence, signalling growing investor confidence.
- Expansion of manufacturing facilities and establishment of new production units by both domestic and international companies, contributing to job creation and economic growth.
- Improvement in India's ranking in global competitiveness indices, reflecting enhanced business environment and investor-friendly policies.
- Adoption of advanced technologies and manufacturing practices to improve efficiency and productivity in various industries.
- Strengthening of infrastructure and logistics networks to support manufacturing activities and facilitate seamless movement of goods.
- Collaboration between government, industry, and academia to drive innovation, research, and skill development in manufacturing.
- Diversification of manufacturing base with increased focus on sectors such as renewable energy, biotechnology, and advanced materials, promoting sustainable growth.
- Continued efforts to address challenges such as bureaucratic red tape, infrastructure bottlenecks, and skill shortages to further accelerate manufacturing growth and competitiveness.
Make in India – Challenges
Despite its progress, the Make in India initiative faces several challenges that hinder its full potential. Here are some key challenges:
- Complex regulatory environment and bureaucratic hurdles that increase compliance costs and deter investment.
- Inadequate infrastructure, including power shortages, poor transportation networks, and limited access to finance, constraining manufacturing operations.
- Skill shortages and mismatches, particularly in technical and managerial roles, affecting productivity and innovation in the manufacturing sector.
- Competition from other manufacturing hubs with lower production costs and more developed infrastructure.
- Lack of effective enforcement of intellectual property rights, discouraging innovation and technology transfer.
- Environmental concerns and sustainability issues arising from rapid industrialisation and resource depletion.
- Uncertainty in policies and regulations, leading to investment delays and reluctance among investors.
- Geopolitical tensions and global economic uncertainties affecting trade and investment flows, impacting manufacturing growth and expansion.
Make in India – Latest updates
Here are some of the latest updates regarding the Make in India initiative:
- Introduction of new sector-specific policies and incentives to attract investment and promote domestic manufacturing, particularly in areas such as electric vehicles, renewable energy, and medical devices.
- Expansion of the Production Linked Incentive (PLI) Scheme to include additional sectors and increase the scope of incentives for eligible manufacturers.
- Launch of strategic initiatives such as the National Infrastructure Pipeline (NIP) and the National Logistics Policy to improve infrastructure and streamline logistics, supporting manufacturing activities.
- Emphasis on promoting local manufacturing and reducing import dependence through initiatives like the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission).
- Focus on enhancing ease of doing business through digitalisation, online approvals, and regulatory reforms to facilitate investment and business operations in India.
- Strengthening of international partnerships and collaborations to attract technology transfer, investment, and market access opportunities for Indian manufacturers.
- Continued efforts to address challenges such as regulatory complexity, infrastructure gaps, and skill shortages through policy reforms and targeted interventions.
- Integration of sustainability and environmental considerations into manufacturing policies and practices to promote green growth and responsible manufacturing.
Bajaj Finserv Business Loan
Starting a manufacturing business can be daunting, but a Bajaj Finserv Business Loan helps you fund your entrepreneurial dream with ease. Bajaj Finserv Business Loan offers attractive interest rates, flexible repayment options, minimal documentation, and faster disbursal. With a business loan of up to Rs. 80 lakh, you can purchase state-of-the-art machinery, hire skilled professionals, and expand your manufacturing operations.
