The Make in India initiative was introduced by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. Devised to change India into a global design and manufacturing hub, Make in India was a timely response to a tough situation: by 2013, the much-hyped upcoming markets bubble had burst, and India’s growth rate had fallen to its lowest level in a 10 year. The promise of the BRICS Nations (Brazil, Russia, India, China, and South Africa) had dissolved, and India was named as one of the so-called ‘Fragile Five’. Global investors argued whether the world’s largest democracy was a risk or an opportunity. India’s 1.2 billion citizens questioned whether India was too big to succeed or too big to fail. India was on the edge of severe economic failure.
The initiative mainly promises the investors – both domestic and overseas – a conducive environment to turn 125 crore population strong-India a manufacturing hub and something that will also create job opportunities.
That’s in effect a dive into a serious business but it is also punctuated with two inherent elements in any innovation – new avenues or tapping of opportunities and facing the challenges to keep the right balance. The political leadership is globally expected to be populist; but ‘Make in India’ scheme is actually seen as a judicious mix of economic prudence, administrative reforms and thus catering to the call of people’s mandate – an aspiring India.
- The target of a growth in manufacturing sector growth to 12-14% per annum over the medium term.
- A growing in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
- To offer 100 million additional jobs by 2022 in the manufacturing sector.
- Granting of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
- A growth in domestic value addition and technological depth in manufacturing.
- Enriching the global competitiveness of the Indian manufacturing sector.
- promising sustainability of growth, particularly with regard to the environment.
The country is recognised to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by as early as 2020. Indian manufacturing sector has positive elements like “favourable demographic dividends” for the next 20-30 years. The sustained availability of a quality workforce is another benefit. The cost of manpower is relatively less as compared to other countries.
- India has already established its presence as one of the fastest growing economies of the world.
- India is expected to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by 2020.
- Glowing demographic dividends for the next 2-3 decades.
- The rate of manpower is relatively low as compared to other countries.
- Responsible business houses working with credibility and professionalism.
- Strong consumerism in the local market.
- Strong technical and engineering capabilities backed by top-level scientific and technical institutes.
- Well-regulated and stable financial markets open for foreign investors.
- A technology acquirement and development fund have been proposed for the acquisition of appropriate technologies, the creation of a patent pool and the development of domestic manufacturing of equipment used for controlling pollution and reducing energy consumption.
- This fund will also work as an autonomous patent pool and licensing agency. It will purchase intellectual property rights from patent holders