What is Make in India, Meaning, Programme, Benefit, Challenge

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The ‘Make in India’ programme was launched by Prime Minister Narendra Modi on 25th September, 2014. The ‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. The initiative not only target manufacturing sector alone, but also aims at promoting entrepreneurship in the country. India was the 9th largest recipient of Foreign Direct Investment (FDI) in 2019 according to World Investment Report 2020 by UNCTAD (United Nations Conference on Trade and Development).

Make in India seeks to encourage foreign investment that brings latest technology, expand knowledge base and inculcate research and development in the country. The government needs to motivate people to contribute their share to the Make in India’ campaign. It is only with the collaborative efforts of the people and government that India can secure the title of a global manufacturing hub.

In line with the programme, The Ministry of Commerce and Industry has announced on 23rd June, 2020 that the Government e-Marketplace (GeM) portal has made it mandatory for seller to submit the country of origin while registering any new product on the online procurement portal. This will complement the Atmanirbhar Bharat programme, that has been started to push for locally made products.

Background of the Programme

The Make in India’ programme was a result of initiatives of the Department for Promotion of Industry and Internal Trade (DPIIT) and is a collaborative effort of different departments and ministries. This was followed by national level workshops on sector specific industries in December, 2014.

These workshops brought Government ministries and industry leaders together in order to draw an action plan that aimed at raising the contribution of manufacturing sector to 25% of the GDP by 2020. The resultant plan was presented , Union Ministers, industry leaders and associations.

to the Prime Minister The Public Private Partnership is the hallmark of the ‘Make in India’ campaign. In line with the Make in India, individual states launched their own local initiatives, such as ‘Make in Odisha’, Tamil Nadu Global investors meet’, Vibrant Gujarat, ‘Happening Haryana’ , ‘Magnetic Maharashtra’, ‘Momentum Jharkhand Global Investor Summit.

Aims and Objectives of the Programme

The ‘Make in India’ idea is not new. Factory production has a long history in the country. This initiative, however, set an ambititious goal of making India a global manufacturing hub. The three major objectives were:

(a) To increase the manufacturing sector’s growth rate to 12-14% per annum.

(b) To create 100 million additional manufacturing jobs in the economy by 2022.

(c) To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (revised to 2025) from the current 16%.

The initiative is aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset. The initiative was simultaneously launched in all state capitals and in several Indian Embassies. It is a part of a wider set of nation building initiatives and aims to attract the top investors across the world to invest in India. Make in India’ programme further aimed to reduce the level of unemployment faced by the youth of the country.

The aim of launching this campaign in India is to make India a world level manufacturing powerhouse which will definitely help in solving some of the biggest issue of Indian economy. Other aim of ‘Make in India’ programme is to do away with red-tapism i.e. delayed regulatory and procedural clearances.

The government plans to give time-bound clearances to the projects through a single online portal. This will create a conducive environment for the business. Besides, the government is taking into consideration the skill mapping and manpower demand for specific sectors. This will ensure that right kind of training is given to people across the sectors in order to boost their employability.

The 25 Key Sectors Identified under Make in India

The 25 key sectors identified under the “Make in India’ initiative include automobile, automobile components, aviation, biotechnology, chemicals, construction defence manufacturing, electrical machinery, electronic systems, food processing, IT and BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals , ports and shipping, railways, renewable energy, roads and highways, space, textiles and garments, thermal power, tourism and hospitality, wellness. National Skill Development Authority (NSDA) is working on creating a Labour Market Information System. This will be helpful for the industry to source its manpower requirement for the Make in India campaign.

Make in India at Key International Events

The initiative has been highlighted at key international events. The Make in India was the key message on Brand India at the annual meeting of the World Economic Forum at Davos (2015). The India Pavilion set up by the India Brand Equity Foundation (IBEF) was inspired by Make in India programme. Make in India was also the theme for India’s participation as partner country at Hannover Messe in Germany.

Benefits of Make in India Campaign

campaign aims to eliminate the hurdles and difficulties which have become with the country’s business environment. The validity of the industrial license under the programme will be extended beyond 3 years. The FDI caps will be raised in a controlled manner. Recently, Indian government has opened up % FDI for telecom sector, for single brand retail. Exports done by manufacturing units help in lowering the trade deficit.

The government also intends to develop industrial corridors and smart cities, world class infrastructure with state of the art technology and high-speed . Better infrastructure will give a major push to the ‘Make in India’ nitiative. Industry experts and analysts have given a thumbs up to the ‘Make in India’ campaign. According to financial analysts, India’s Foreign Direct Investment ) has increased by 40% since the announcement of the programme. Companie Like FOXCONN (manufacturer of i-Phones) etc., have all opened their manufacturing units in India. Fiat, Airbus and Hitachi are some other companies that have actively showed interest in the ‘Make in India’ initiative.

Challenges to the Make in India Initiative

There are a number of challenges that the government needs to overcome in order to make this programme a success in real term. India needs to be ready to ackle elements that adversely affect the competitiveness of manufacturing sector. Special tax concessions need to be given to the organisations and countries which are ready to set their establishments within the country. Although this will reduce he government’s income earned through taxes, it will contribute a great deal in procuring foreign investment and technology to boost the campaign.

1 number of technology based companies have not shown enthusiasm for the ampaign launch and hence preferred to continue to getting their components nanufactured by China. Make in India campaign is at the loggerheads with the jake in China deal . It is major rival to India when it comes to the outsourcing, nanufacturing and services business.

Many economists and experts states that India rather needs to focus on Make for India since export-led growth strategy will not work for India as it did for Asian economies, including China. Therefore, the government should rather focus on creating an environment where all sort of enterprises can flourish and it is able to compete with rest of the world. This would encourage foreign producers to come and take advantage of our environment to create jobs in India. Red tapism, corruption, poor infrastructure are another major areas of concern.

The initiative has set out too ambitions growth rates for the manufacturing sector (12-14%). Historically, India has not acheived it and a quantum jump will be needed to achieve this goal.

Future Course of Action

The major manufacturing economies of the world have reached the top positions by making factor costs more advantageous if the product were made in their countries rather than made elsewhere.

Government need to focus on futuristic segments such as robotics, genomics, chemical feedstock etc. Making in a country must provide a ‘competitive advantage’ to the manufacturer. For promoting Make in India and reducing import dependency, it is essential that developers in transmission, thermal, hydro, distribution and renewable sectors need to join the National campaign of ‘Atmanirbhar Bharať and wholeheartedly adopt the ‘Make in India’ policy of Government Policy requirements and regulations at the Central, State and Local level need to be government’s top priority.


In conclusion, the ‘Make in India’ campaign acknowledges that no other sector does more to generate broad-scale economic growth and ultimately higher standard of living than manufacturing. The Make in India programme has the potential to transform India into a manufacturing hub by creating conducive environment for ease of doing business, skill development, innovation and investment. Make in India is not a brand nor it is a slogan but it is a new national movement as it covers the whole spectrum of our government, society and business. As highlighted by our Prime Minister from rampants of Red Fort that skill, talent, discipline and determination of new India can help usher a ‘New Industrial Revolution’.

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