The Make in India scheme, launched by Prime Minister Narendra Modi in September 2014, aims to transform India into a global manufacturing hub. It focuses on promoting investment, fostering innovation, enhancing skill development, protecting intellectual property, and building best-in-class manufacturing infrastructure. This article will help you understand about what is Make in India Scheme.
The initiative targets 25 key sectors, including automobiles, pharmaceuticals, textiles, and electronics, to drive industrial growth and job creation. By simplifying regulations and providing incentives, make in India seeks to attract both domestic and international businesses to invest in India. The program also emphasizes sustainable growth and the development of smart cities to improve the quality of life for citizens.
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What is Make in India scheme?
The Make in India initiative is a major national program launched by the Government of India in September 2014. The aim is to transform India into a global manufacturing hub by encouraging both multinational and domestic companies to manufacture their products within the country.
This comprehensive plan focuses on job creation, skill development, fostering innovation, and enhancing the overall infrastructure to support manufacturing. Also, numerous startup were registered under this scheme.
What are the key sectors targeted in Make in India?
The Make in India campaign initially identified 25 key sectors with high growth potential. These sectors are crucial for driving economic growth and job creation.
The key sectors targeted in the Make in India program are as follows:
| Key Sectors | Description |
|---|---|
| Automobiles | Manufacturing and assembling of vehicles and auto components. |
| Aviation | Development of aircraft, aerospace technology, and aviation infrastructure. |
| Biotechnology | Research and production of biotechnology products, including healthcare and agriculture. |
| Chemicals | Production and innovation in the chemicals and petrochemicals industry. |
| Construction | Development of infrastructure, buildings, and real estate. |
| Defense Manufacturing | Production of defense equipment and technologies. |
| Electrical Machinery | Manufacturing of electrical equipment and machinery. |
| Electronic Systems | Development and manufacturing of electronic products and systems. |
| Food Processing | Processing and packaging of food products. |
| IT and BPM | Information technology services and Business Process Management. |
| Leather | Manufacturing and export of leather goods. |
| Media and Entertainment | Production and distribution of entertainment and media content. |
| Mining | Exploration and mining of minerals and natural resources. |
| Oil and Gas | Exploration, extraction, and refining of oil and gas. |
| Pharmaceuticals | Research, development, and production of pharmaceutical products. |
| Ports and Shipping | Development of port infrastructure and shipping services. |
| Railways | Development and modernization of railway infrastructure and services. |
| Renewable Energy | Development and deployment of renewable energy sources. |
| Roads and Highways | Construction and maintenance of road infrastructure. |
| Space | Development of space technology and exploration missions. |
| Textiles and Garments | Manufacturing and export of textiles and garments. |
| Thermal Power | Generation and distribution of thermal power. |
| Tourism and Hospitality | Development of tourism infrastructure and services. |
| Wellness | Promotion and development of wellness and healthcare services. |
Which are the programs launched under Make in India?
To support the Make in India initiative, a variety of schemes aimed at fostering manufacturing, innovation, and skill development across multiple sectors. Here’s a detailed look at the key schemes under the Make in India initiative:
| Scheme | Objective | Key Features |
|---|---|---|
| National Manufacturing Policy | Increase sector growth rate to 12-14% per annum and create 100 million jobs by 2022 | Establishment of NIMZs, simplified regulatory norms, and skill development programs |
| Modified Special Incentive Package Scheme (M-SIPS) | Attract investments in the electronics sector | 20-25% subsidy on capital expenditure for electronics manufacturing units covering over 25 verticals |
| Electronics Manufacturing Clusters (EMC) Scheme | Make India a global hub for electronics system design and manufacturing (ESDM) | Financial assistance for Greenfield and Brownfield EMCs, encouraging collaborative efforts |
| National Policy on Electronics (NPE) | Promote the electronics industry and make India a global leader | Targets production of one billion mobile handsets by 2025, encourages R&D in emerging technologies |
| National Electric Mobility Mission Plan (NEMMP) 2020 | By promoting hybrid and electric vehicle, achieve national fuel security | Incentives for manufacturing and adoption of electric vehicles, aims for 6-7 million unit’s sales by 2020 |
| Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme | Encourage adoption of electric and hybrid vehicles | Provides subsidies on electric vehicles, Phase II focuses on electrification of public and shared transportation |
| Skill India Initiative | By 2022, Train over 40 crore people in different skills | Establishment of ITIs, implementation of PMKVY |
| Startup India | Build a conducive ecosystem for the growth of startups | Tax benefits, easier compliance norms, Rs 10,000 crore Fund of Funds |
| Atal Innovation Mission (AIM) | Promote a culture of innovation and entrepreneurship | Establishment of Atal Tinkering Labs, support for Atal Incubation Centres |
| Smart Cities Mission | Promote sustainable and inclusive cities | Development of 100 smart cities, focus on smart solutions like integrated transport systems and e-governance |
| Pradhan Mantri Awas Yojana (PMAY) | Provide affordable housing to all urban poor by 2022 | Subsidies on home loans for economically weaker sections and lower-income groups, promotion of affordable housing projects |
| Sagarmala Project | Promote port-led development in India | Modernization of ports, improvement of port connectivity, development of coastal economic zones |
| Make in India Mittelstand (MIIM) | Facilitate investment by German Mittelstand companies in India | Hand-holding support for German SMEs, assistance in market entry, business setup, and regulatory approvals |
| Amended Technology Upgradation Fund Scheme (ATUFS) | Incentivize investments in technology upgradation in textiles | Capital subsidy for investments in eligible machinery, modernization of textile and garment sectors |
| Scheme for Integrated Textile Parks (SITP) | Provide world-class infrastructure for the textile industry | Financial support for development of textile parks, encourages cluster-based development |
What are the objectives of Make in India?
The initiative, launched by the Indian government, aims to transform India into a global manufacturing hub. Here are the primary objectives of the Make in India program:
- Boost Manufacturing Sector
- Increase Manufacturing Contribution:
- Enhance the contribution of the manufacturing sector to India’s Gross Domestic Product (GDP), with a target of reaching 25% of the GDP.
- Job Creation:
- Generate employment opportunities by boosting the manufacturing sector.
- Increase Manufacturing Contribution:
- Attract Foreign Investment
- FDI Inflow:
- Encourage foreign direct investment (FDI) in various sectors to bring in capital, technology, and best practices.
- Ease of Doing Business:
- Improve the business environment to make India more attractive to foreign investors.
- FDI Inflow:
- Enhance Skill Development
- Skilled Workforce:
- Promote skill development programs to create a skilled and capable workforce to meet the demands of the manufacturing sector.
- Skilled Workforce:
- Promote Innovation and R&D
- Innovation Ecosystem:
- Foster innovation and research & development (R&D) to drive technological advancements and improve manufacturing processes.
- Technology Upgradation:
- Encourage industries to upgrade technology to compete globally.
- Innovation Ecosystem:
- Develop Infrastructure
- Industrial Corridors:
- Develop industrial corridors and smart cities to provide world-class infrastructure for manufacturing units.
- Transport and Logistics:
- Improve transportation and logistics networks to facilitate efficient movement of goods.
- Industrial Corridors:
- Reduce Import Dependence
- Import Substitution:
- Reduce reliance on imports by boosting domestic production of goods, especially in critical sectors.
- Self-Reliance:
- Promote self-reliance in key sectors such as defence, electronics, and pharmaceuticals.
- Import Substitution:
- Simplify Regulatory Framework
- Regulatory Reforms:
- Simplify and streamline regulatory processes to reduce the burden on businesses and promote ease of doing business.
- Single-Window Clearance:
- Implement single-window clearance systems to expedite approvals and clearances for businesses.
- Regulatory Reforms:
- Enhance Export Competitiveness
- Export Promotion:
- Increase the competitiveness of Indian products in the global market by promoting exports and improving quality standards.
- Global Supply Chains:
- Integrate Indian manufacturers into global supply chains to enhance market access and expand business opportunities.
- Export Promotion:
- Sustainable Development
- Environmental Standards:
- Promote sustainable manufacturing practices by adhering to environmental standards and promoting green technologies.
- Energy Efficiency:
- Encourage the adoption of energy-efficient technologies and practices to reduce the carbon footprint of manufacturing activities.
- Environmental Standards:
- Support MSMEs
- MSME Growth:
- Support the growth of micro, small, and medium enterprises (MSMEs) by providing access to finance, technology, and markets.
- Cluster Development:
- Promote the development of industrial clusters to provide MSMEs with common facilities and infrastructure.
- MSME Growth:
These objectives aim to create a robust manufacturing ecosystem in India, driving economic growth, creating jobs, and positioning India as a key player in the global manufacturing landscape.
Incentives offered under Make in India Scheme
Various sectors targeted by the Make in India initiative, along with the incentives offered and programs launched for each sector:
| Sector | Incentives Offered / Programs Launched |
|---|---|
| Automobiles | 100% FDI permitted under automatic route |
| National Electric Mobility Mission Plan (NEMMP) 2020 | |
| Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme | |
| Aviation | 100% FDI permitted in the sector |
| Development of airports and related infrastructure | |
| Regional Connectivity Scheme (UDAN) | |
| Biotechnology | Biotechnology Industry Research Assistance Council (BIRAC) |
| National Biotechnology Development Strategy | |
| Chemicals | PCPIR (Petroleum, Chemicals, and Petrochemicals Investment Regions) setup |
| Reduced excise duty and customs duty for certain products | |
| Construction | 100% FDI in construction development projects |
| Smart Cities Mission | |
| Pradhan Mantri Awas Yojana (PMAY) | |
| Defence Manufacturing | 100% FDI (up to 49% under automatic route, above 49% through government approval) |
| Defence Production Policy 2018 | |
| Strategic Partnership (SP) Model | |
| Electrical Machinery | Modified Special Incentive Package Scheme (M-SIPS) |
| National Policy on Electronics (NPE) | |
| Electronic Systems | Electronics Manufacturing Clusters (EMC) scheme |
| Phased Manufacturing Programme (PMP) | |
| Food Processing | Mega Food Parks scheme |
| 100% FDI in food product retail trading | |
| IT and BPM | Software Technology Parks of India (STPI) |
| Special Economic Zones (SEZs) | |
| Leather | Indian Leather Development Programme (ILDP) |
| Mega Leather Cluster Development | |
| Media and Entertainment | 100% FDI in broadcasting carriage services |
| National Film Heritage Mission | |
| Mining | 100% FDI in mining and exploration of metal and non-metal ores |
| National Mineral Policy 2019 | |
| Oil and Gas | Hydrocarbon Exploration and Licensing Policy (HELP) |
| Discovered Small Field Policy | |
| Pharmaceuticals | 100% FDI under automatic route for greenfield projects |
| Pharmaceutical Industry Promotion Policy | |
| Ports and Shipping | Sagarmala Project |
| 100% FDI under the automatic route | |
| Railways | 100% FDI in railway infrastructure |
| High-Speed Rail Projects | |
| Renewable Energy | 100% FDI in renewable energy generation and distribution |
| National Solar Mission | |
| National Wind-Solar Hybrid Policy | |
| Space | New Space India Limited (NSIL) establishment |
| Liberalized FDI policy | |
| Textiles and Garments | Amended Technology Upgradation Fund Scheme (ATUFS) |
| Scheme for Integrated Textile Parks (SITP) | |
| Tourism and Hospitality | Swadesh Darshan Scheme |
| 100% FDI in tourism construction projects | |
| Wellness | National AYUSH Mission |
| 100% FDI in wellness sector |
What are the achievements of Make in India?
Since its inception, the Make in India initiative has seen several notable achievements across various sectors:
- Increased FDI Inflow:
- The initiative has significantly boosted Foreign Direct Investment in India, with the country receiving its highest-ever FDI inflow in recent years.
- Growth in Manufacturing:
- Several sectors, especially automobiles, electronics, and pharmaceuticals, have seen substantial growth in manufacturing output.
- Infrastructure Development:
- Significant investments have been made in improving infrastructure, including roads, ports, and industrial corridors, which have facilitated smoother and faster manufacturing processes.
- Boost in Employment:
- The campaign has generated millions of jobs across various sectors, contributing to overall economic growth and a reduction in unemployment.
- Technological Advancements:
- Encouragement of innovation and research has led to technological advancements in areas such as defense manufacturing, space technology, and renewable energy.
What are the challenges faced under Make in India scheme?
Despite the successes, the Make in India initiative faces several challenges:
- Regulatory Hurdles:
- Complex regulations and bureaucratic red tape can hinder the smooth functioning of businesses.
- Infrastructure Gaps:
- While progress has been made, there is still a need for further development in infrastructure to support large-scale manufacturing.
- Skilled Labor Shortage:
- There is a persistent gap between the demand and supply of skilled labor in various sectors.
- Global Competition:
- India faces stiff competition from other manufacturing hubs like China and Vietnam.
To overcome these challenges, continuous efforts are needed to streamline regulations, improve infrastructure, and enhance skill development programs. Strengthening the ease of doing business and fostering a conducive environment for innovation will also play a crucial role in the future success of the Make in India initiative.
JOIN 24EFILING TELEGRAM CHANNELConclusion
In conclusion, what is make in India scheme has made significant strides in transforming the country into a manufacturing powerhouse. By focusing on key sectors, launching supportive programs, and achieving remarkable milestones, the initiative is well on its way to driving sustainable economic growth and positioning India as a global manufacturing leader.
FAQs
1. What is the primary objective of the Make in India scheme?
The primary objective of the Make in India scheme is to transform India into a global manufacturing hub by promoting investment, fostering innovation, enhancing skill development, protecting intellectual property, and building world-class infrastructure.
2. Which sectors are targeted by the Make in India initiative?
The Make in India initiative targets 25 key sectors, including automobiles, pharmaceuticals, textiles, electronics, renewable energy, and defense manufacturing, among others.
3. How does the Make in India scheme benefit investors?
The Make in India scheme benefits investors by simplifying regulatory processes, providing financial incentives, offering tax benefits, and creating a more business-friendly environment to attract both domestic and foreign investments.
4. What role does skill development play in the Make in India initiative?
Skill development is a crucial component of the Make in India initiative, aiming to equip the workforce with the necessary skills and expertise to meet the demands of the targeted manufacturing sectors, thus enhancing productivity and employability.
5. How does Make in India support sustainable development?
Make in India supports sustainable development by promoting the use of renewable energy, encouraging environmentally friendly manufacturing practices, and focusing on the development of smart cities to ensure sustainable urban growth and improved quality of life.
