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LABOUR LAW II

RESEARCH PAPER

CAT III

“The logo for the Make in India campaign is an elegant lion, inspired by the Ashoka Chakra
and designed to represent India's success in all spheres. Wheel denotes peaceful progress and
dynamism. lion has been the official emblem of India" and it stands for "courage, tenacity and
wisdom -- all Indian values The campaign was dedicated by the Prime Minister to the eminent
patriot, philosopher and political personality, Pandit Deen Dayal Upadhyaya who had been
born on the same date in 1916.”

Submitted By: KAMENDRA RAY Submitted To: Mrs. Mita Poddar

Semester: VIIIth ‘B’ Asst. Prof. Labour Law

Roll No.: 328 NUSRL, Ranchi.

National University of Study and Research in Law, Ranchi


INTRODUCTION
India is a country rich in natural resources. Make in India is an ambitious campaign launched
by the Prime Minister Narendra Modi on 25th of September in 2014 in New Delhi. The
purpose of launching this campaign is to make India a destination of global manufacturing hub.
In order to make this campaign a successful one, the PM of India met to the top 40 CEOs of
several Fortune 500 companies. This plan was launched in the presence of top CEOs from India
Inc, ambassadors, international industry leaders, ministers, government officials, etc. This
campaign has targeted to make a call to top companies of well identified countries. Some
selected domestic companies who are leading in the field of innovation and new technologies
have also been invited. There is a special unit in the Commerce Ministry named “Invest India”
which helps in guiding all the top foreign investors in terms of regulatory and policy issues as
well as assists in obtaining the regulatory clearances.

The major and ultimate objective is the creation of jobs and enhancement of skills among the
youngsters in 25 sectors of the economy. In the past foreign companies use to target the Indian
labour class to carry out the manufacturing process in foreign countries and used to earn huge
profits due to low cost . With this soon India would become the hub for manufacturing concern
all over the globe to come and invest in India due to the availability of skilled and technical
manpower at low cost . The investment would be done in almost all the sectors from electrical
to electronics, from automobile to agriculture, satellite to submarine etc.

The make in India Plan announcement was done by PM Modi at the Vigyan Bhawan in New
Delhi to boost and promote the economy in the presence of top business concerns such as
Mukesh Ambani, Kumar Mangalam Birla, Cyrus Mistry, Azim Premzi etc The P.M
acknowledged this fact that India being ranked low in the ease of doing business by World
Bank has started actions to ease the environment in India to attract foreign investors to do
business in India. This plan is working to invite top companies across the globe and top Indian
companies who are doing quite well in their business ventures to invest and explore their
business ventures in the Indian soil. P.M Narendra Modi has formulated a special cell in the
Commerce Ministry named Invest India which would guide foreign investors in terms of
regulatory and policy issues and assists them to obtain the clearances and to complete the
obligations in carrying business in Indian land.

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LITERATURE REVIEW

Mann and Lalit (2007) in a paper on "India Shining: Investment Destination for Retail
Segment" have made an attempt to evaluate and appreciate the “flow of Foreign Investment in
India”. “A thread bare discussion has been made on factors affecting Foreign Direct Investment
in Indian Retailing Sector, and factors against the Foreign Direct Investment in retail”. “This
paper suggests that, India needs today to lessen the rural - urban divide. This can be done
through the help of big pocket entrepreneurs entering the country”1.

Narayana (2012) explained that one of the major concerns of planners and policy makers in
India is attracting more and more Foreign Direct Investment. He analysed the Foreign Direct
Investment and its flows into India. He highlighted the basic constraints to investment in
general and Foreign Direct Investment in particular.2

Role of HR and Financial Services in Making “Make in India” Campaign a Success by


Samridhi Goyal , Prabhjot Kaur and Kawalpreet Singh (2013), Researcher Focusing on
the employment generation, boosting trade and economic growth, safe guard and sustain the
overall development of INDIA and its citizen. He stated that fostering innovation, intensify
skill development, generate employment opportunities, preventing brain drain and making the
use of internationally standardized technology affordable for INDIAN citizens. In order to
make INDIA a manufacturing hub its human resource and financial assistance will play a major
role. Researcher highlighted the importance of the role of HR and Financial Services in making
“MAKE IN INDIA” campaign a success; making INDIA a manufacturing hub and a bench
mark of development and prosperity. Researcher suggest that there is need of reforms in
industrial strategies to make India a manufacturing hub. Favourable industrial framework need
to be established that should attract more and more domestic as well as foreign industrialists
towards Indian Territory. There is a need for financial service providers and advisors who could
work for these industrialists right from the beginning.

1
Puja Walia Mann and Lalit Asija (2007); “India Shining: Investment Destination for Retail Segment”; Delhi
Business Review X Vol. 8, No.1, January-June
2
Narayana, N. (2012) “Foreign Direct Investment in India; Constraints and the Need for Suitable Measures”
Foreign Investment and Indian Economy (Ed), Manglam Publishers & Distributors, Delhi
3
Gunjan Bhagowaty (2014), Management Development Institute, Gurgaon, he is focusing on
the various issues and creativity of Make in India after 2014, his research paper aims to identify
some of the key challenges in the path of development and recommend possible solutions to
deal with the same. But the researcher raise reality of the ground level, there are a lot of
challenges that the government has to overcome in order to turn the vision of achieving a
sustainable 10% growth in the manufacturing sector. Researcher also point out the key issues
and Dr. Arvind Narayan Chaudhari suggest to government to take care at the time of turning
Make of India vision. Some of the issues are improving the ease of doing business in India,
Land Acquisition challenges, improving the employability of general and engineering
graduates, Infrastructure development of major roads and highways in the country, Capacity
addition in the power sector to meet industrial energy demand, strengthening the capabilities
of the CISF to meet growing demand for industrial security. Researcher is hopeful that about
significant and sustainable growth in the manufacturing sector and progress towards India
becoming a global manufacturing hub.

Green Will Clayton (2016) Rice University, stated that there is major Job issues and problems
in India, therefore researcher finds that the modern service sector and the formal manufacturing
sector are the true growth sectors for India. Both have exhibited moderate job creation on a low
base. Formal-sector manufacturing, however, has the most potential for transformation under
a more supportive policy regime. Researcher suggest that India needs to achieve two objectives:
creating new jobs and shifting more workers into high-productivity sectors. Meeting both can
provide large economic headwinds to the Indian economy for several decades.

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OBJECTIVE OF THE STUDY

The main objective of this paper is to explore the impacts of “MAKE IN INDIA” direction and
guidelines for the welfare country.

 To study the Make in India concept.


 To convert India into Global Manufacturing Hub
 To Provide Employment
 Boost Economic Growth
 To urge both local and foreign companies to invest in India
 To find out perception about Make in India concept among other country.
 To search the impact of Make in India concept on Indian economy.

METHODOLOGY

In present study researchers used the narrative literature review methods for describing “MAKE
IN INDIA” The study is based on critical evaluation and analysis of basically Primary Data. A
study is undertaken in the sampled regions to see its impact for which a detailed questionnaire
is prepared to collect relevant information from the primary source for the guidance of the
researchers. With the help of the questionnaire, detailed discussions were made with the certain
sources of primary data to understand their views, thinking and attitude which would help to
give the researchers useful recommendations.

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CHAPTERISATION

The Make in India Vision


Manufacturing currently contributes just over 15% to the national GDP. The aim of this
campaign is to grow this to a 25% contribution as seen with other developing nations of Asia.
In the process, the government expects to generate jobs, attract much foreign direct investment,
and transform India into a manufacturing hub preferred around the globe. The logo for the
Make In India campaign is a an elegant lion, inspired by the Ashoka Chakra and designed to
represent India's success in all spheres. The campaign was dedicated by the Prime Minister to
the eminent patriot, philosopher and political personality, Pandit Deen Dayal Upadhyaya who
had been born on the same date in 1916.

Why PM wants to Make in India?


The Prime Minister called for all those associated with the campaign, especially the
entrepreneurs and the corporates, to step and discharge their duties as Indian nationals by First
Developing India and for investors to endow the country with foreign direct investments. The
Prime Minister also promised that his administration would aid the investors by making India
a pleasant experience and that his government considered overall development of the nation an
article of faith rather than a political agenda. He also laid a robust foundation for his vision of
a technology-savvy Digital India as complementary to Make In India. He stressed on the
employment generation and poverty alleviation that would inevitably accompany the success
of this campaign.

Why companies were not manufacturing in India?


Make in India campaign is at loggerheads with the Make in China ideal that has gained
momentum over the past decade. China is a major rival to India when it comes to the
outsourcing, manufacturing, and services business. India's ailing infrastructure scenario and
defunct logistics facilities make it difficult for the country to achieve an elite status as a
manufacturing hub. The bureaucratic approach of former governments, lack of robust transport
networks, and widespread corruption makes it difficult for manufacturers to achieve timely and
adequate production. The Modi government has vowed to remove these hurdles and make the
nation an ideal destination for investors to set up industries.

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BENEFITS AND DISADVANTAGES OF MAKE IN INDIA

India is a country rich in natural resources. Labour is aplenty and skilled labour is easily
available given the high rates of unemployment among the educated class of the country. With
Asia developing as the outsourcing hub of the world, India is soon becoming the preferred
manufacturing destination of most investors across the globe. Mae in India is the Indian
government's effort to harness this demand and boost the Indian economy.
India ranks low on the "ease of doing business index". Labour laws in the country are still not
conducive to the Make in India campaign. This is one of the universally noted disadvantages
of manufacturing and investing in India.

CHALLENGES

India’s small and medium-sized industries can play a big role in making the country take the
next big leap in manufacturing. India should be more focused towards novelty and innovation
for these sectors. The government has to chart out plans to give special privileges to these
sectors. According to World Bank, India ranks 142 out of 189 countries in terms of ease of
doing business. India has complex taxation system and poor infrastructure facilities. Rapid skill
up gradation is needed because skill intensive sectors are dynamic sectors in India, otherwise
these sectors would become uncompetitive. India should motivate research and development
which is currently less in India and should give more room for innovation.

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CONCLUSION

India needs to develop a macro vision for promoting 'Make in India' in defence sector to attain
the level of developed countries in defence manufacturing. It should not only have Make ‘In’
India approach but also make ‘For’ India. It should first satisfy the domestic market and then
look for the exports. Present approach is more of export oriented than for the domestic market.
An export-led growth strategy will not pay for India as it did for Asian economies, including
China, due to the tepid global economic recovery, especially in the industrial countries. The
government should rather focus on creating an environment where all sorts of enterprise can
flourish, and then leaving entrepreneurs to choose what they want to do. Make in India will
typically mean more openness, as we create an environment that makes our firms able to
compete with the rest of the world, and encourages foreign producers to come and take
advantage of our environment to create jobs in India.

The NDA government's Make in India campaign has till early October attracted INR 2000 crore
worth investment proposals. The campaign has, despite this, found its fair share of critics. The
topmost of these criticisms is leveled against the incumbent government. It has been felt that
the government does not walk its talk - labour reforms and policy reforms which are
fundamental for the success of the “Make in India” campaign have not yet been implemented.
A number of layoffs in companies such as Nokia India cast long shadows over the campaign.
A number of technology based companies have not been enthused by the campaign launch and
have professed to continue getting their components manufactured by China.

Indian has the capacity to push the GDP to 25% in next few years. The government of India
has taken number of steps to further encourage investment and further improve business
climate. “Make in India” mission is one such long term initiative which will realize the dream
of transforming India into manufacturing Hub. Start-ups in the core manufacturing sectors are
poised to play a crucial role in the success of ‘Make in India’ ambitions, said experts at a panel
discussion at the 11th India Innovation Summit 2015. “Start-ups in the fields of telecom,
defense manufacturing, automobile, Internet of Things, financial technology modules and
mobile internet have immense potential to succeed in the scheme of ‘Make in India’,” said Role
of Startups towards Make in India”. Make in India scheme also focuses on producing products
with zero defects and zero effects on environment.

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REFERENCES

1. "Look East, Link West, says PM Modi at Make in India launch". Hindustan Times. 25
September 2014.
2. "Centre, States to ready 'Make in India' plan". The Hindu. 28 December 2014. Retrieved 28
February 2015.
3. "Focus on 'Make In India'". Business Standard. 25 September 2014. Retrieved 27
February 2015.
4. "7 facts not known about PM Modi's Make In India". Newsroom Post. 27 May 2015.
Retrieved 27 May 2015.
5. "Modi for 'zero defect' Make in India products". The Hindu Business Line. 29 December
2014. Retrieved 27 February 2015.
6. "Revealed: Man behind PM's Make in India campaign". DNA India. 18 November 2014.
Retrieved 27 February 2015.
7. "Modi Launches 'Make in India' Campaign, Portal and Logo". The New Indian Express. 26
September 2014. Retrieved 27 February 2015.
8. "Cabinet approves raising (FDI) cap in defence to 49 per cent, opens up railways". The
Economic Times. 7 August 2014. Retrieved 9 March 2015.
9. "Make in India: Centre gets Rs 1.20 lakh crore worth investment proposals in electronics
sector".
10. "India pips US, China as No. 1 foreign direct investment destination". The Times of India.
Times News Network. 30 Sep 2015.
11. "India Pips China, US to Emerge as Favourite Foreign Investment
Destination". Profit.ndtv.com.
12. "Pay-off time for Modi: India displaces US, China as the top FDI destination in
2015". Firstpost. 29 July 2015.
13. "Digital India Initiative To Transform Country, Says Ravi Shankar Prasad", NDTV, 15
February 2016
14. "Sectors". Make In India. Archived from the original on 14 August 2015. Retrieved 1
October 2015.