The Government of India aims to boost the ‘Make in India’ initiative by addressing the restrictive and discriminatory conditions found in bidding procedures. This move is seen as essential in upholding the Public Procurement (Preference to Make in India) Order, 2017 that was put in place to protect local suppliers and promote production and manufacturing within India.
Understanding the Make in India Program
Launched in 2014, the Make in India program seeks to transform India into a significant global manufacturing and investment destination. The programme, overseen by the Department for Promotion of Industry and Internal Trade (DPIIT), invites investors and partners worldwide to contribute to India’s growth.
Objectives of Make in India
The main objective of the scheme is to draw foreign investments to spur industrialisation, augment the existing industry base, and surpass China’s industrial growth. The scheme targets an increase in manufacturing sector growth to 12-14% annually. Furthermore, it intends to ramp up the manufacturing sector’s contribution to the country’s GDP from 16% to 25% by 2022, create 100 million jobs by 2022, and foster export-led growth.
Four Pillars of Make in India
The Make in India initiative stands on the four pillars: New Processes, New Infrastructure, New Sectors, and New Mindset. These pillars involve easing business operations, revamping infrastructure, identifying potential sectors for growth, and fostering a government-industry partnership, respectively.
Outcomes of the Initiative
As an outcome of the initiative, India experienced an influx in Foreign Direct Investment (FDI). In fact, FDI inflows in India increased from USD 45.15 billion in 2014-2015 to a record-breaking USD 83.6 billion in 2021-22. With continuous economic reforms and ease of doing business, India is projected to attract USD 100 billion in FDI in Financial Year 2022-23.
Production Linked Incentive (PLI) and Other Initiatives
The Production Linked Incentive (PLI) scheme was rolled out in 2020-21 as an additional impetus for Make in India across 14 crucial manufacturing sectors. Besides this, the government also introduced the National Single Window System (NSWS), PM Gati Shakti Programme, and One-District-One-Product (ODOP) scheme.
Semiconductor Ecosystem
Recognising the importance of semiconductors in the global economy, the Government has unveiled a USD 10 billion incentive scheme to establish a semiconductor, display, and design ecosystem within India.
Previous Year Questions on Make in India Initiative
A question in the 2012 UPSC Civil Services Preliminary Examination tested the candidates’ knowledge of the ‘Make in India’ initiative and its associated policies. The question focused on recent policy strategies to promote the manufacturing sector’s growth.
In the Mains examination, a question in 2019 asked candidates to discuss the correlation between the success of ‘Make in India’ and ‘Skill India’ programmes, emphasising the need for radical labour reforms.