Make in India – A great initiative was a program or initiative launched by the Indian Government on 25th September 2014. Prime Minister of India Mr Narendra Modi inaugurated Make in India – A great initiative. Make In India initiative was to attract multinational companies from India and across the world to manufacture their products in India. Make In India initiative was launched specifically targeting the FDI(Foreign Direct Investments). All the capping that was there for FDI on different sectors was removed and 100% FDI was allowed for the 25 sectors that the government was going to work on. There were exceptions made for Space, Defence and News and Media where the FDI was kept to 74%,49% and 26% respectively. Lets take a look at the 25 sectors that Government of India decided to work on.
1.Automobiles 2. Automobile Components 3. Aviation
4.Biotechnology 5. Chemicals 6. Construction
- Defence manufacturing 8. Electrical Machinery 9. Electronic systems
- Food Processing 11. Information Technology and Business Process Management
- Leather 13. Media and Entertainment 14. Mining 15. Oil and Gas
- Pharmaceuticals 17. Ports and Shipping 18. Railways
- Renewable Energy 20. Roads and Highways 21. Space and astronomy
- Textiles and Garments 23. Thermal Power 24. Tourism and Hospitality
The plan was good by the Government of India and Make In India created all the buzz in the market and now lets take a look at the response of the initiative.
Effects of Make In India:
- The main goal of Make In India was to improve the ease of doing business in India.
- In January 2015 Spice group announced an investment of US$ 75.6 million to setup a smartphone manufacturing unit in Uttar Pradesh.
- In February 2015 Chinese firm Huawei made an investment of US$ 170 million to setup a Research and development centre in Bengaluru.
- In may 2015 Hyundai Heavy Industries partnered with Hindustan Shipyard limited to setup Naval ships manufacturing in India.
- Taiwan’s Foxconn signed up a pact with Maharashtra for the development of semi conductors In India.
- In October 2016 when World Bank published its reports India moved up 12 places from 142 to 130 in ranking on the ease of doing business.
- General Electric Transport and Alstom won contracts worth a combined US$ 5.6 billion to supply India’s railways with new locomotives
- In 2015-16 financial year, India achieved the highest FDI inflow of US$ 55.5 billion.
- US chip maker Qualcomm took an initiative of Design in India to mentor 10 Indian companies.
- Schneider Electric is going to help India with Digital India and smart city mission for a period of five years with an investment of around US$ 110 million.
Make In India Achievements:
- World Bank Annually releases a report based on different parameters that ranks countries on Ease of Doing business in the country. India was ranked 116 in 2006 out of 155 countries. In 2015 it was ranked 142 out of 189 countries and after Make In India it was ranked 130 in 2017 out of 190 countries.
- In 2013 Indian was the 9th most valued nation and in 2015 it jumped two places up to be the 7th most valued nation with an increase of 32%, Taking its brand value up to US$ 2.1 billion.
- In 2015-16 India achieved its highest FDI inflow of US$ 55.5 billion.
- Manufacturing value added(MVA) of India was 5.5% in 2014 and it has gone up to 7.6% in 2015 and as a result India jumped three places from 9th to 6th in World’s leading manufacturer.
- Indian economy grew at 7.9% in the first quarter in 2016 compared to 7.3% in last quarter of 2015.
- India was ranked on 15th place on Global Development Retail Index(GRDI) in 2015 and after Make In India it jumped 13 placed to be ranked on 2nd place in 2016.
- In the global Innovation Index India was ranked 81st in 2015 and jumped 15 places to be ranked on 66th place in 2016.
- In the Global Competitiveness Index India was ranked 71st place in 2014 and after Make In India it was ranked 39th in 2016.
Make In India as an initiative has given a great boost to Indian Economy and has placed India on the world map in terms of doing business. The work has not ended here, for a country like India which now has a great leader along with the young resources it always had, India should be aiming for ranking in top 5 in all the world Indexes.