The Make in India initiative completes eight years of transformative reforms in 2022, demonstrating progressive growth as the annual Foreign Direct Investment (FDI) doubled to USD 83 billion. This campaign, launched in 2014, aspires to transform India into a prime global investment and manufacturing destination. The initiative extends an open invitation to potential worldwide investors and partners to partake in India’s growth narrative.
Objectives of the Make in India Programme
The Make in India programme has set clear-cut objectives to attract foreign investment and foster new industrialisation. It aims to develop the existing industrial base in India, surpassing that of China. The target is to enhance the growth of the manufacturing sector by 12-14% per annum over the medium term and increase the share of manufacturing sector in India’s Gross Domestic Product from 16% to 25% by 2022. Furthermore, it endeavours to create additional jobs and encourage export-driven growth.
Significant Achievements of the Make in India Initiative
One of the most notable achievements of this initiative is evident in FDI inflows. In 2014-2015, India’s FDI stood at USD 45.15 billion, which has seen a consistent increase over the past eight years, reaching a historical high of USD 83.6 billion in 2021-22. Additionally, India has made strides in reducing the import of toys while significantly increasing toy exports.
Another commendable accomplishment is the successful implementation of the Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors. Launched in 2020-21, the PLI scheme amplifies the Make in India drive.
Complementary Initiatives Supporting Make in India
Various initiatives such as the National Single Window System (NSWS), Gati Shakti, One-District-One-Product (ODOP), and programmes to enhance toy exports while curtailing imports support the Make in India drive. The NSWS is a digital platform that simplifies the process of approvals and clearances for investors. The ODOP leverages local crafts and products by providing global exposure and contributing to regional socio-economic growth.
Challenges Encountered in the Make in India Programme
Despite the successes, Make in India encounters hurdles such as investment from shell companies, low productivity, small industrial units, high power outages, slow transportation, and bureaucratic red tape. A sizable portion of FDI originates from shell companies based in Mauritius, suspected of routing Indian black money. Moreover, the productivity of Indian factory workers is lower compared to their counterparts in other Asian countries.
Infrastructure challenges like frequent power outages, slow transportation speeds, saturated rail network, and underperforming ports hinder the programme’s progress. Finally, cumbersome bureaucratic procedures and corruption deter potential investors.
Moving Forward with Make in India
Despite these challenges, the Make in India initiative continues its stride toward fostering a business environment conducive to investors. Through this initiative, businesses aim to make ‘Made in India’ products synonymous with global quality standards. Thus, the products are not only ‘Made in India’ but also ‘Made for the World.’
Previous UPSC Civil Services Examination Questions
Examining previous year questions can provide insights into the possible range of questions linked to the Make in India initiative. For instance, a 2012 question asked about the government initiatives to promote the manufacturing sector’s growth. The correct answer included all three options: National Investment and Manufacturing Zones, ‘single window clearance,’ and the Technology Acquisition and Development Fund. A 2019 question deliberated on how the ‘Skill India’ programme and labour reforms influence the success of ‘Make in India.’