ABSTRACT

The Make in India program is an initiative under the Department of Industry Policy & Promotion,
Ministry of Commerce & Industry. Primarily devised to transform India into a global design and
manufacturing hub it also aims to facilitate investment, foster innovation, enhance skill development,
protect intellectual property, build best in class manufacturing infrastructure.
The authors’ recent research and assessment of implementation of many of India's public
programs showed that the 'Make in India' initiative scored less from a project management perspective.
The assessment was done based on a set of ten parameters at the project management and organizational
level.
What are the reasons for the low score and what can we do to improve upon it? This will be the
focus of the current paper and will be an extension of the earlier study.

This paper will critically examine the following.

a) an analysis of the policy and vision and whether this has been clearly laid out amenable for
implementation.

b) review of current progress in the Make in India program.

c) Suggestions and steps needed to implement the program in a better way.
 This will be done in the context of the challenges faced and the strengths and opportunities in the
country. In final analysis, this will find ways and means to make the 'Make In India' program work from
an implementation perspective .
There are several public projects currently being implemented in India which are of large size and
having potentially significant impact and outcome. The analysis in this paper could serve as an example
to understand and evaluate if project management knowledge and practice is being applied in many of
such projects.
CHAPTER:-1
INTRODUCTION
EU Market in China is somewhat similar to Chandni Chowk of Delhi. It is spread across 48
square meters and has 80 to 90 shops. Daily 15ooo containers of finished products are exported to India.
During Christmas 60% of the goods are exported across the world. All varieties of goods from soft toys,
clothes, Indian Gods etc. are available to be exported in India. China made Lord Ganesh is in very much
demand in Indian market that cost around Rs. 800, (thrice the price).Around 2 cr. of Chinese Ganeha are
sold in Indian market per year , but interestingly Incenses stick for the God are being imported from India
and are sold again thrice the price. A flying doll is very much a center of attraction in the toy market. The
cost incurred in the production might be just Rs. 10 but is sold for around Rs.700. It is just the technology
that is making it expensive. A news channel correspondent asked an Indian shop keeper why do India
doesn‘t have such market. The shopkeeper replied that the Chinese government just provides us all
facilities to do business, but in India the government just wants tax, tax and tax.

Research Methodology: For writing this paper secondary data has been used. The data has been
used from various websites, newspapers and reports.
 Objective: The objective of this paper is to

1. Analysis the ―make in India ―initiative of the Indian Government.

2. Scope and challenges in this campaign.
3. Present global market.
4. Reforms and suggestion to make this campaign a success.

Can India repeat the magic of China? Make in India

―campaign was launched by the Government of India on 25 September 2014. India has targeted to create
10-15 millions of jobs per year, which cannot be achieved just by service sector. So it is high time that
manufacturing sector should be focused. Can make in India recreate the magic of China, a country which
is world famous for low cost production? China is responsible for half of the global growth. India is one
fourth to one fifth of China‘s economy. According to the latest data of World Bank GDP of US is $17
trillion, GDP of China is $10 trillion and India $ 2 trillion. India will take long to overtake China. Even in
the slow down the country was able to produce 13.2 million of jobs, where else India was struggling even
for a million. China is a special combination of state owned enterprises, currency control and one party
rule which will be tough for India to emulate. Countries like Vietnam and Bangladesh from the emerging
market has come up in the competition. Economic liberalization and a revolution in information
and communication technologies helped to flourish manufacturing sector and India at present do not have
any revolutionary technology and even the domestic demand is weak. The demand can be increased if the
real wages of middle class is increased, which China did long back in 1995.the real wages increased by
400% and poverty declined from 50% and latter to 18.6% in 2011. China accounts for 95 percent of
global output of rare earths, 17 chemically similar metals used in hybrid cars and wind turbines.

Based on statistics from the International Monetary Fund‟s World Economic Outlook
Database, China‟s total Gross Domestic Product amounted to $17.632 trillion in 2014. Therefore,
exports accounted for about 13.3% of China‟s totaleconomic output. According to KPMG report
India has the potential to reach USD 1 trillion in manufacturing sector by 2025 and can contribute 25-
30% in GDP just like China, Germany, US, Japan. At present its contribution is 2.2% in the world‘s
manufacturing output which is equivalent to developed countries like UK and France.

Why do we need Make In India? India has a demographic dividend where more than 50% of
population is of working age of 15 to 59, and by 2020 the percentage will be 69%. The demographic
dividend offers an economic opportunity to India to be utilized for fast tracking its growth, particularly in
the manufacturing sector. This becomes all the more important when 12th Plan envisions creation of 50
million non –
farm employment opportunities. However, creating jobs for the youth is a biggest challenge faced both by
developed and developing economies around the world. India has targeted to create 10-15 millions of jobs
per year, which cannot be achieved just by service sector. So it is high time that manufacturing sector
should be focused. According to Labour Bureau's "Third Annual Employment & Unemployment Survey
2012-13 unemployment rate amongst illiterate youth is lower than educated youth. A comparison with the
earlier report by labour bureau shows that the unemployment level has increased during 2012-2013 over
2011- 2012. The report on ‗Youth employment- unemployment scenario, 2012-13 said that one out of
every three persons in the age group 15 to 29 years who have completed at least their graduation is
unemployed. Where else illiterate was the lowest with 3.7 per cent without work.
Challenges in Make in India.

India has dropped its ranking from 140th to 142thin the World Bank‗s recent report „Doing
Business 2015: Going Beyond Efficiency’ its ranking is even lowest in the BRIC.

1. Commencement of Business: Starting up a business in India is yet again a big problem;India

stands 137 in the ranking 189 according to the ―ease to do business‖. 11.9 procedures, takes 28.4 days,
costs 12.2% of income per capita and requires paid in minimum capital of 111.2% of per capita income.
On an average, a manufacturing unit needs to comply with nearly 70 laws and regulations. 89 days to start
a business in India, compared to 41 days in China. 67 days to register property in India,
compared to 32 days in China. 425 days to enforce contracts in India, compared to 241 days in China.

2. Crony bureaucracy: Political fights between central and state government, inefficient
bureaucracy, Red tapism is a big hurdle. The decentralization of authority was a main reason of success of
SEZ in China, Provincial and local authorities were made partners and stakeholders, by delegating to
them powers to approve foreign investment. . The SEZ authorities in China can approve foreign
investment proposals up to $30 million. In India, only State governments are allowed to set up SEZ and
the powers for foreign investment approvals are vested with the Development Commissioners, who are
the representatives of the Central Government and the delay in paper work continues.

3. Acquisition of Land: Most of the Sez land is fertile land which the owner is reluctant to give.
Lack of clear land title, fragmented holding and multiple legislation are a hindrance in business. They are
overcrowded and have insufficient logistical links with ports and airports. The present NDA government
has brought revised land acquisition bill which is again stuck in political hassles. The TATA Nano‗s
incident in Singoor (West Bengal) is alive example of land problem and political chaos. India‘s main
export processing zones or EPZs (Kandla, Santacruz, Noida, Madras, Cochin and Falta) have not done
much, The SEZ size in China is more than 1000 hectares, far more
than India. These SEZ are located near ports and are in proximity with cities like Taiwan and Hong Kong,
with strong vendor base. China‘s five main special economic zones (Shenzen, Zhuhai, Santou, Xiamen,
and Hainan) proved to be very successful in attracting FDI, boosting exports and creating large-scale
employment.

4. Logistic cost: State border check points tasked primarily for carrying out compliance
procedures for the diverse sales and entry tax requirements of different states, combine with other delays
to keep trucks from moving during 60 percent of the entire transit time. Unpredictability in shipments add
to total logistics costs in the form of higher-than-optimal buffer stocks and lost sales, pushing logistics
costs in India. The average manufacturer in India loses8.4 per cent a year in sales on account of power
outages as opposed to less than 2 per cent in China and Brazil.Utility costs: Power costs vary across
regions in India and China, Indicative power cost per 1000 kwH in China is around USD 73 compared to
USD 97 for India. Moreover quality of power in terms of power outages is poorer in India than in China
Water costs for industrial use in China are in the range USD 0.19 – 0.9/ kl compared to USD 0.175 –
1.5 /kl in India.

5. Tax Regime:For majority of critical components say for eg.in consumer durables and toys
.The import duty in India is higher in comparison to China. Further, since India does not have a well-
developed componentmanufacturing base, most of the components are
imported. The effective import duties in India are in the range of 4 – 31.7% while Chinese effective duty
rates are in the range of 0– 6%. The indirect tax in China is low, it has single VAT which is flat 17%,
where else in India there are excise duty, custom duty, cess etc. Indian government charges 33.99%
corporate tax to domestic companies and 42.23% to foreign companies. On the contrast Chinese
government provides tax holidays, tax concession for the transfer of technology.

6. Poor infrastructure: China had diverted its FDI flow into infrastructure developments of
roads, water, transport, electricity and into social welfare sectors like health, education, wholesale and
retail, where India ranking is low.While most of the manufacturing locations in India are spread out due
to location specific tax benefits, manufacturing locations in China along with the vendor base is
clustered(with most located near the east coast. Average freight cost in China is USD 0.013 per tonne per
km comparedto USD 0.2 in India.

7. StringentLabour Law:China has just one paragraph simple labourlaw. They follow hire and
fire policy andmake fresh contracton new assignment.No such policy is followed in India, the units bears
the cost of ideal Labour.
Productivity Growth (%) for the year 2000-2012 [Average annual growth rate of GDP at
constant prices per worker at 20011 PPPs] idle workers.China v/s India.
 Country 2000-2005 2005-2012 2000-2012
India 2.6 6.9 5.1
China 8.6 9.5 9.1
Source: Compiled from ―APO Productivity Data Book 2014‖

The most problematic factors for doing business in India.

Source:The global competitive Report 2014-2015

Scope for India.

India has it all, this we proved by sending a mission to Mars most economically. According to
theIndex report released by Deloitte Touche Tohmatsu Limited‘s (DTTL), India happens to the fourth
most competitive manufacturing nation in the next five years. We are the leaders in information
technology, sciences, pharmaceuticals, biotechnology and food production. It is a right time for India to
encash the population dividend, as majority of the population is young. Looking
at the global prospects, apart from United States and United Kingdomwhere the recovery is visible, other
countries like Japan, Euro Zones, Brazil and Japan are in recession zone because of low growth, low
inflation, excessive debt, deflationary pressure. Crises in Greece. Chinais decelerating at the same time.
Emerging market will face problems like dollar going strong; higher interest rate. The economy is in its
fragile state. The best thing that has happened is the crashing of crude oil prices, which will help
government in curtailing subsidies and diverting the money to some other productive work. Many Indian
companies likeHavells, home appliance likeGodrej,Micromax, auto- parts maker Bosch and stationery
manufacturer ITC have shifted their manufacturing units back in India.According to BusinessToday 16
companies have shifted their production from China to India; even Chinese companies are entering into
joint ventures to set up business in India. The reason is that cost of production has increased as the labour
cost has risen. Nokia has set up its manufacturing hub in Tamilnadu, as cost of production is 12 % less
than China.Same ways LG and Hyundai has its export hub in India. Manufacturing of Tata Nano itself
shows the talent of Indians showcasing its engineering skill. The country should leverage this
competitive advantageasmany US, European and Japanese companies are shifting production from China
to lower-cost locations such as Southeast Asia. India has a largeyoung population of engineers and
scientist etc. India since the inception of economic
reforms has followed capital intensive technique and China had been labour intensive. It is high time to
tap labour intensive like toys, apparels and footwear, food processing, gems and jewelry.India needs to
tap its manufacturing potential by tapping the LCC countries (Low Cost Countries). These LCC countries
with wage rate less than a third of the US. India, China, Thailand, Poland, Mexico, Turkey, Brazil,
Indonesia, Russia, Philippines, South Africa, Malaysia and Taiwan.UNIDO has identified textiles;
chemicals; basic metals; machinery and equipment and electrical, Machinery, as sectors in which India
leads among developing countries. Capital goods like machine tools; heavy electronic equipment; heavy
transport, earth moving and mining equipment; high technology equipment like telecom, power, ICT and
electronic hardware. Strategic industries like aerospace; shipping; IT and electronic hardware; renewable
energy; solar, wind etc, defense equipment are some of the area where the concerned need to work on.

Current Global senerio.The China‟s Crunch plunging into recession.

On 24th August 2015 the global market tumbled down as it observed a “Black Monday” in stock
market plunging the Chinese economy into recession. The global market is marching towards financial
crises like 2008 and 2009. The Chinese government devaluated their currency yuan. The global market
is rattled and India will be no
exception, but the fundamentals of India are strong and it should take this as opportunity as a growth
engine as the world is looking upon Indian economy in the Asian market. The dwindling China and
recovering India, can grow if the Indian government takes proper reforms. Due to fall in crude oil prices
Indian Foreign exchange has increased by 13% in past year.Current account deficit declined by 97%.
While exports to China accounted for only 5.2% of India's total last year, the figures for Singapore,
Vietnam and Indonesia were more than twice as high This recession has come as boon in disguise for five
sectors in India namely Consumers goods, automobile, banking, fuelretailers, and technology and drugs
exports. But industries like Steel will suffer as China‟s exports have will be cheaper and they will dump
their steel products abroad.

Advantages of India over China.

 Currency: Fall in Rupee making its export more competitive and rising Yuan.
 Shortage Labour: Chinese does not have enough workers for low value added industries as they
now want to work in Hi Tech factories.

 Labour cost: has risen 10% per year.

 Shipping cost: Freight charges in India are low. Charges from Shanghai to UK are higher as
compared from Chennai.
  Inventory Risk. Local manufacturing helps Indian companies manage inventory better at a time
of high economic volatility.

 Local Demand.Domestic demand in India is itself very large, which is 600, million rural
consumers where else China‘s focus was on export.

 Single country risk. Many countries do not want to bet just on one country, Japanese are looking
for other options, due to political risk.

Potential Industries.

Apparel Industry: India is the second largest in apparel industry after China, it exports were
$274 billion in 2013 out of which 40% was contributed by apparel and 60% by textile, while Indian
exports were only $36 billion dollar out of which 40% were from apparel and 60% from textile. The
Brandix India Apparel City in Visakhapatnam is emerging as a hub for apparel companies. India can
focus on manmade fibre based textile product; branding India as a T&A hub, creating new T&A
manufacturing hub etc. At present 45 million work forces are employed, to achieve $ 70 million dollar
export we need to employ an additional 10 million work force.
Chemical Industry:The chemical industry has witnessed a growth rate of 13%- 15 % in the past
5 yrs. India has a strong domestic consumption.The chemical industry is among the fastest growing ones
in
India. The bulk of chemicals produced in India comprise either upstream products or intermediates, which
go into a variety of manufacturing applications including fertilizers, pharmaceuticals, textiles and plastics,
agrochemicals, paints and dyes.Chemicals constitute ~5.4% of India‘s total exports. India already has a
strong presence in the export market in the sub-segments of dyes, pharmaceuticals and agro chemicals.
India exports dyes to Germany, the UK, the US, Switzerland, Spain, Turkey, Singapore and Japan.There
are good opportunities in segments such as Speciality Chemicals, Speciality Polymers, for catering to
huge emerging domestic demand as also as a manufacturing hub.India is the third largest producer of
chemicals in Asia and sixth by output, in the world. India‘s proximity to the Middle East, the world‘s
source of petrochemical feedstock, makes for economies of scale.

Automobile Part: The Indian automobile happens to be the 3rd largestin the world by 2016,
ahead of Germany, Japan and Brazil, and will capture 5% worldwide sale. India's exports of auto
components increased at a CAGR of 19.6 per cent to US$ 9.3 billion during FY08-
13. Contribution to GDP will account to as much as 3.6 per cent by 2020 from 2.1 per cent in 2009.
National Automotive Testing and R&D Infrastructure Projects (NATRiPs) as well as concessions
provided on excise duties in the Union Budget 2014-15, have helped the Indian auto components industry
achieve considerable growth. LCC countries like Thailand and China has seen a growth rate of 30% a
year, such growth
should be achieved. India‘s Automotive Mission Plan (AMP) 2006-2016 is a collaborative effort between
the Indian government, the automotive industry, and academia.11 The stated vision of AMP is for India
―to emerge as the destination of choice in the world for design and manufacture of automobiles and auto
components with output reaching a level of U.S. $145 billion accounting for more than 10 percent of the
GDP and providing additional employment to 25 million people by 2016.‖
Electronic and electrical Industry: Countries like Taiwan, China, Malaysia and Thailand are
already the market leaders in export. India should aspire to capture 1-1.5% of market share in future as
compared to 5% share of other countries like Taiwan and China.The export of Electronics goods and
components from India during the year 2013-14 registered a growth of 5.23 per cent. Some of the reasons
to invest in India are that India has a 3rd largest pool of scientist in the world. We have skilled manpower
available in abundance in Semiconductor Design and Embedded Software. We have Strong design and
R&D capabilities in auto electronics and industrial electronics and Global demand to reach USD 94.2
Billion by 2015.
Pharmaceutical Industry:The Indian pharmaceutical industry was estimated to be worth US$ 12
billion in 2013 and is expected to touch US$ 100 billion by 2025.The Indian pharmaceutical industry is
expected to touch US$ 100 billion by 2025.A large raw material base
and the availability of a skilled workforce give the industry a definite competitive advantage. US,
European Union and Africa.

Food Processing Industry:India is the second largest producer of food after China, and happens
to be the 5th largest industry in terms of production, consumption export and growth. It contributes 9-10%
of GDP in agriculture and manufacturing .The confederation of Indian industry (CII) believes that the
industry will create 9 million of employment and attract US$33 billion of investment in next years.
Cement Industry: It happens to be the largest industry worldwide. Its current capacity is 370MT and is
expected to grow 550MT by FY20.

Reforms taken by Union Budgets FY 2014-2015 for” Make

In India”.

The government plans to create Industrial corridorDelhi-Mumbai Industrial Corridor (DMIC) as a

global manufacturing and investment destination utilizing the 1,483 km-long, high-capacity western
Dedicated Railway Freight Corridor (DFC).Its advertisement for the campaign tries to convince the
foreign companies that the country‘s environment is transforming from Red Tape to Red Carpet.

Business environment: All business and investment clearances on a single online portal with an
integrated payment gateway; single window customs clearance.Infrastructure: Formation of the
National
Industrial Corridor Authority and a new institution (3PIndia) to support mainstreaming of PPPs; launch of
tax-favorable Infrastructure Investment Trusts; development of 16 new ports, new inland waterways, and
new airports in Tier-2 cities funds for metros in Lucknow and Ahmedabad, and additional funds for
railways in border areas .Energy: Steps to improve coal production and linkages; extension of the tax
holiday on investments in power to 2017; transmission feeder separation in rural areas.GST bill has been
diluted to 27%. The campaign is already into action for example, after the Increase in the import duties
many mobile companies have planned manufacturing in India.FDI for Defense worth 1, 10,000 crore
out of which 90% are for Make in India from the French government.Changes in export and import
duties: The government has made amendments in import and export duties of various potential industries
to boost Make in India. Other measures:
14.18 billion have been allocated for Prime Minister‘s Employment Generation Programme.1.32 million
have been allocated for providing assistance to training institutions and many other funds allocation .

Lucknow Agra Expressway (CASE STUDY): Land acquisition is a big barrier in the so
called ―ease to do business‖ in India and the land acquisition bill is stuck in the parliamentary uproar,
but the Lucknow and Agra Expressway is an outstanding example of land acquisition ,where 3000
hectares of land was purchased from farmers in one year without any litigation .
Traditional Model Uttar Pradesh Model

Land acquisition takes years to complete. 97.6% of land was acquired in less

than a year by using dual purchase acquisition.

Land is acquired through Land acquired through mutual

agreement.10 cases came across &
litigation which takes years to get settled.
verdict in favour of UPEIDA

Compensation is paid normally at a lower rate Compensation was paid 4 times the circle in rural
than market. area & twice the rate in urban area along with
standing crops, with speedy

payments to farmer.

Suggestion: If the present government wants ―Make in India‖ to drive industrial growth, Instead
ofconcentrating on shrinking of current account deficit, the focus must be at ground level for those who
actually does manufacture. The focus must be to provide good roads, port, supply power and water, and
provide basic facility like education and health. India spends less of its GDP on public education and
health than its peers — 4.7 percent, compared to Mexico‘s 8.5 percent and Brazil‘s

10.1 percent, according to the World Bank. The U.S. spends 13.7%. In 2013 the infrastructure deficit
was $1 trillion, to fix this the World Bank suggested to invest in capital expenditure, where the
government is holding itself back. Only 20% to 25% Indian university graduates are
readily employable, according to ParthaIyengar, head of research for Gartner India, a technology-research
firm. So instead of decreasing the deficit, the focus should be to increase the revenue sources and that is
tax. Reforms should be done to increase the tax baseto broaden the tax base, reduce tax breaks for the
corporate sector, and improve tax collection and tax administration, as only 3% pay tax in India,
compared to China that is 20%. The tax slab should be increased so that many contribute.According to
NiranjanRajadhyaksha, executive editor of Mint, a New Delhi business daily, in an article this week India
cuts state spending when the economy is weak and raises it when the private sector is booming.Instead of
rising public spending to cushionthe economy when private spending is weak, the state tends to track –
and exacerbate – the business cycle.

China and India can complement each other: Even though there is political distrust among the
dragon and elephant, looking at the geographical location, India and China can bring great economic
changes if both join hands. Both countries can provide favorable environment for each other‘s
competitive industries like textile, where both countries are leaders. India can allow Chinese
telecommunication to access local market, and likewise Indian pharmaceutical companies in China. The
European Union integration can be lesson for both and can ultimately create a common market of 2.6
billion people.
Zero Defect products: The country needs to focus on technology upgradation and skill development to
match up the international benchmark and standards. The government has recently launched
“SkillDevelopment Programme” in this segment.
Other suggestion:The country need to focus on R& D development, simplified tax regime and
FDI system and simplified legislation.

Quick Decision: China is slowing down very slowing and India is progressing even more
slowing so India has to pull up its socks because even though, as China's State Council has unveiled a
national plan,
―MADE IN CHINA 2025‖ designed to transform China from a manufacturing giant into a
world manufacturing power. Nine tasks have been identified as priorities: improving manufacturing
innovation, integrating information technology and industry, strengthening the industrial base, fostering
Chinese brands, enforcing green manufacturing, promoting breakthroughs in 10 key sectors, advancing
restructuring of the manufacturing sector, promoting service-oriented manufacturing and manufacturing-
related service industries, and internationalizing manufacturing.
CHAPTER:-2

REVIEW OF LITERATURE

Due to rapid pace of technological developments and intensified competition, small and medium
enterprises in India have started realising the significance of improving their productivity levels more
than ever before. In this context, the present chapter reviews the literature relating to the study so as to
formulate the problem precisely and develop a rationale for its undertaking. The basic objective is to
indicate in a general way the type of work done in this direction rather than to give exhaustive review of
all the research work done on the problem. The review of various studies done in this chapter provides a
broad spectrum about the productivity and efficiency analysis of small scale industrial sector which
would be helpful to design the appropriate methodology for the present study.
Various empirical studies have been conducted from time to time to examine the different aspects
of growth pattern and performance of small scale industrial sectors in India and in this context, important
studies are reviewed below in a chronological order. For this purpose, the chapter has been divided into
three sections, Section -I highlights the review of studies relating to the performance evaluation of small
scale industrial sector at All India level, whereas, Section-II focuses on the studies pertaining to the
performance evaluation of the small scale
industrial sector at regional level. However, the last section is concluding in nature and pinpoints the
rationale of undertaking the present study.
Habib (1972) through his study came to the conclusion that small scale industries play an
important role in the economic development by providing numerous chances of income generation and
improving the standard of living of the masses. Habib emphasized that it is only the small scale sector
through which economic prosperity can reach the remotest sections of the society. From the very
beginning since the process of economic development started, the small scale sector has been providing
handsome employment opportunities to millions of job seekers in the country. Further, small scale
industries use local raw materials, employ local people and thus help in generating employment
opportunities for the community.
National Council of Applied Economic Research (1972) conducted a study to examine the
economies of selected number of small industrial units operating in different parts of the country. A
sample of 159 units spread over 22 industrial groups was selected, of the selected units, 48 were
manufacturing consumer products, 76 capital goods and 35 intermediate products. The study showed that
besides other problems, the under-utilisation of capacity among most of the units was due to the problems
of production as well as marketing. The problems of production were closely associated with scarcity of
raw material and
inadequate finance. The problems of marketing are by and large attributed to such factors as limited size
of operation, practically little or no control over quality, price and weak financial base, restricting the
scope for engaging in sustained sales promotion. The problem of sales is more acute where the area of
operation is large particularly in case of consumer products or capital goods, where after-sale service is
essential. In most of the cases the entrepreneurs are found to be dependent on middlemen for the
marketing of their products.
Banerjee (1975) examined the relationship between capital intensity and productivity in the
context of Indian manufacturing industry. The analysis has been carried out for manufacturing sector as a
whole and five individual industries (viz. cotton textiles, Jute textiles, sugar, paper and bicycle) by using
ASI data for the period 1946-64. The study highlighted that the performance of the manufacturing sector
was sluggish over the period 1946-64. While labour productivity showed a significant upward trend
during this period, but this sector did not indicate the presence of any ‘technical progress’. The hypothesis
of constant returns to scale was not rejected. It has been found that elasticity of substitution between
capital and labour is near unity in almost all the industries.
The Vidarbha Industries Association (1976) made an empirical survey of sick units in the
region and dealt specifically with the major problem of finance, policies and procedures of credit agencies
as well as
the difficulties that were being faced in marketing. The study asserted that most of the difficulties of small
scale sector arise from financial, administrative control, frequent interest changes and recession in
demand these tends to make the units sick. Further, the requirements of credit of small scale industries
located in far away places are greater than those located at an industrial centre because the former has to
maintain higher inventories. The study made specific observations on the low and weak equity base of the
units, the unrealistic gestation period allowed by state financial corporations, inadequate loans by
commercial banks and these factors emerged as the major causes of sickness in the small scale sector. The
study suggested that the moment a danger of sickness appears, action should be initiated and dues of a
sick unit should be converted into a long term loan. The study also revealed that financial agencies have
not been able to play their role in the development of small scale sector in the under developed regions. It
has, therefore, been recommended to set up a regional development corporation which may finance sick
units and help them in marketing their products.
Jain (1980) discussed the increasing role of small scale industries in industrial structure of the
country along with export potential of small scale industries. The various measures undertaken by the
government agencies such as guidance formation, financial support, export house scheme etc. to develop
the formation of the consortia for the benefit of
the small industries have also been expressed. It has been observed that the operational results of existing
consortia may not be very substantial but encouraging. Therefore, a potential of growth of such consortia
look immensely favourable.
Mehta (1980) attempted to analyse productivity trends for 27 Indian industries by using ASI data
for the period 1953-65. The results revealed that there was a considerable diversity in the experience of
different industries regarding trends of labour and capital productivity. Labour productivity was found to
have increased significantly in industries like vegetable oil, chemical, glass and glassware and
insignificantly in matches, iron and steel and cement industries. However, capital productivity has not
increased appreciably, rather the reverse was true in most industries. The total factor productivity of
Indian manufacturing sector have declined over a period of time. The study noticed that most industries
exhibited the presence of constant returns to scale and diseconomies of scale had not set in. The study
demonstrated that there were inter industry differences with respect to ease of capital-labour substitution
which primarily explained the inter industry growth differentials. The elasticity of substitution was found
to be significantly different from zero in many industries.
Papola (1981) studied the impact of concessional finance on industrial development and
emphasised that in order to make concessional finance effective, it will be necessary to plan and develop
a
minimum threshold level of industrial activity preferably with strong inter-relationship between the
financial institutions, promotional institutions, state and district administration and potential industrial
entrepreneurs, especially for more backward districts. He further emphasised that almost one half of the
fixed and working capital requirements of the units studied have been met by institutional financing and
most of the fixed capital financing has been met through concessional finance especially in the backward
districts. Units availing concessional finance have experienced a higher rate of growth in output than
those without it.
Goldar (1983) examined productivity trends in Indian manufacturing sector and estimated Total
Factor Productivity (TFP) by applying Solow index and Translog index using firstly 1951-65 data
covering all Census of Indian manufacturing industries except “general engineering and electrical
engineering” industry for 1951-58 and Annual Survey of Industries (ASI) data for 1959-65 and secondly,
during the period of 1959-78 based on ASI data. This analysis shows a rising trend in labour productivity
and capital intensity and a falling trend in capital productivity during this period. Growth in TFP seems to
have been rather sluggish and its contribution to output growth is quite small. The observed rise in labour
productivity and fall in capital productivity may accordingly be attributed to increasing capital intensity.
Substitution of labour by capital seems to be the main feature of industrial growth. The
result of Cobb-Douglas function estimation favours the assumption of constant returns to scale implicit in
the TFP indices which is in broad agreement with the results of TFP indices especially in terms of the
direction of TFP growth. The study has pointed out that the general industrial situation was not conducive
to productivity growth. Under- utilisation of capacity, shortage of fuels, power and transport facilities and
deteriorating industrial relations had a significant depressing effect on productivity growth. Moreover,
gestation lags in the basic and capital goods industries, which accounted for a dominant part of
investment in post 1956 period, must have had a depressing effect on productivity growth. A pronounced
rising trend in capital intensity was found, which implied that the growth in industrial employment has
seriously lagged behind the growth in industrial investment and output. To some extent this is a result of
the changing industrial structure in favour of basic and capital goods industries. It has been observed that
metals, chemicals, rubber, petroleum and machinery industries are among the lowest ranked in terms of
TFP growth, since these are the industries in which import substitution has been attempted on a
considerable scale. Though the policy of import substitution contributed much to the objective of self
reliance, yet it has been inimical to productivity growth.
Ethiopia (1984) evaluated the importance of small scale industries for providing employment and
income generation in the African countries. The focus of the study is on the analysis of efficiency
of
production and employment and results showed that the artisan and small scale industrial sector are
important component of the Ethiopian economy in terms of generation of income and employment. The
empirical evidence of factor intensity and production also indicates that many small enterprises are
efficient in utilizing scarce resources such as capital and foreign exchange. Small scale industries have
also reasonable demand for their products, but strengthening of the linkage between small scale industry
and the agriculture sector appears to be necessary. The study revealed that institutional, social and
economic constraints impede the development of this sector.
Khan (1985) highlighted the role of non-traditional small scale industries engaged in exports
from India. The export potentialities of small scale industries on the basis of various studies conducted by
different government agencies and by the team of European Economic Community have also been
discussed. With regard to export problems of small scale industries, it has been stated that small size of
units, finances, managerial skills, technical backwardness and export marketing system are the biggest
hazards in fostering the export of small scale units. To increase the exports, it has been suggested that
exhibitions solely projecting the small scale industries and overseas visits of delegations of small
entrepreneurs should be encouraged. It has been further suggested that State Trading Corporation, Trade
Development Authority and Export Promotion Councils should provide the information to small
scale industries about the demands of their products in the foreign market.
Ganpathy (1986) observed in his study that banking and other financial institutions were not
playing effective role in the development of small scale industries and in removing the problem of
sickness. Study found the causes behind some viable units going sick are bad management, failure to keep
abreast of modern technology, political interference, general fall in discipline and apathy to work. It has
therefore been suggested that for the removal of problem of sickness not only the financial assistance
required but technical and marketing facilities also need to be improved simultaneously.
Little et. al. (1987) discover very little regularity in the pattern of partial and total factor
productivity and their relationship with firm size in five small scale industries when size is measured
either by number of workers employed, or by the value of fixed assets. An analysis of technical
efficiency, based on a three factor translog production function,
reveals that there arewide variationsin total factor productivity.
Within each of the five industries, variation in technical inefficiency (measured by the difference between
actual and predicted output) is substantial and there is no systematic relationship between employment
size and technical efficiency. Only in Machine Tools industry, technical efficiency is correlated with firm
size. As for the sources of variations in technical efficiency, four variables: the average
experience of the labor force, the age of the capital stock, the experience of the entrepreneur and the level
of capacity utilization, are found to be significant in one or more industries.
Ganguly (1988) studied the performance, policies, problems and prospects of the small scale
industrial sector. The study explained that inspite of vigorous efforts being made to promote the small
scale industries as a matter of conscious policy decision, the sector does suffer from various problems
such as inadequate availability of raw materials, inadequacy of financial assistance, lack of effective
marketing and encroachment of the areas reserved for small scale industries by large and medium sector.
It has been suggested that accelerated development of the small scale sector would help in a healthy,
speedy and vibrant growth of medium and large scale sector resulting into further strengthening the
linkages between these sectors.
Vepa (1988) examined the association between the growth of small industries and growth of
resources, author viewed that small industries have strong linkage with the total development of raw
material and human resources. If these natural resources are not exploited properly, the industrial
development can not be accelerated which will adversely effect the economic growth. For this purpose,
author suggested that the small sector should be developed from the grass root level, proper development
of small units facilitates optimum use of raw material, infrastructural facilities and human resources,
thereby contributing to the growth of large and medium units in a big way. Further, author argued that the
small sector has been accepted as an effective instrument in the development of backward areas.
Ramaswamy (1990) estimated the partial productivity of labour and capital and relative efficiency using
unit level data for four industries: Motor Vehicle Parts, Agricultural Machinery and Parts, Machine Tools
and Parts, and Plastic Products. He uses the same relative efficiency index as Goldar (1985) does. His
analysis indicates that capital intensity and partial productivity are sensitive to alternative measures of
firm size and there is little regularity in the behavior of capital labour ratio and employment size. Partial
factor productivity of labor and capital do not exhibit any significant relationship with firm size when size
is measured in terms of employment, however, a positive relationship is observed between capital-labour
ratio and investment size of the unit. Labour productivityrises while capital productivity falls as the
investment size of the unit increases further, efficiency indexes show neither systematic nor substantial
differences between employment or investment size classes of units. Ramaswamy’s analysis suggests
existence of increasing returns to scale and thus rejects the assumption of constant returns to scale.
Sharma and Diwan (1994) provided a comprehensive insight into the small scale sector of India
and observed that over the years, this sector has exhibited a tremendous amount of resilience, ability to
diversify and improve its performance. Further, the process of liberalisation and market reforms has
provided tremendous opportunities for growth of small enterprises. This will however, depend upon the
ability of small scale sector to take advantage of its inherent strengths of quick response, innovation and
flexibility. Further in the study, to assess the response of small scale sector and its ability to reposition
itself in the changed business environment a SWOT (Strength, Weakness, Opportunity, Threat) analysis
of small scale sector was carried out. It was observed that with the opening up of the economy, there is a
big opportunity for small scale sector to enter into profitable relationships with large and medium units.
Chattopadhyay (1995) with the help of primary and secondary data discussed the causes and
solutions of industrial sickness in India. By using various mathematical and statistical tools like financial
ratios and multiple regression, it has been observed that sick industrial units have been suffering from
managerial inefficiency, demand recession, obsolete plant and machinery and labour problems. Amongst
these problems, it has been found that managerial inefficiency is the most serious one, followed by
demand recession or market constraints. Further, study observed that causes of sickness of small scale
industries are different from those of large sector. Small scale sector is being deprived of financial aid by
the financial institutions, they lend them only when the security of their loan is guaranteed. Study made
empirical
analysis especially for textile and engineering goods industries and concluded by suggesting that mere
recommendations and enactment of policies is not enough unless proper implementation is ensured.
Therefore, government should take necessary steps to tackle the problem.
Jain (1996) observed that liberalisation had compelled Indian firms to improve product quality,
internal productivity and reduce costs through a combination of organisational restructuring, downsizing,
process re-engineering and computerisation. These measures will be inadequate in the next century as
firms will face different kinds of competition in globalised era. Global firms move towards creating
knowledge products by using superior human and organisational skills and state of art technology. Indian
firms should use innovation, entrepreneurship and information technology in strategy and corporate
philosophy to create competitive challenges in global success.
Nath (1996) performed inter-state comparison of relative efficiency in small scale industry of
India using the data culled out from the reports in second all India census of small scale industrial units
conducted in 1988-89. However, the state level data was obtained from corresponding state wise volume
of the report. The study comes up with the results that in Maharashtra and Madhya Pradesh, most of the
small scale industries are relatively more efficient than in other states. However, in Andhra Pradesh,
Bihar, Kerala, Tamil Nadu and West
Bengal they were relatively less efficient. Use based classification of industries revealed that consumer
durable industries had some of the highest average efficiency indices and relatively smaller coefficient of
variations whereas, the intermediate product industries and the consumer non-durable industries had
wider variation in their relative efficiency indices across states.
Justus (1997) pointed out that small scale industry play an important role in the economic
development of a country. The promotion of small scale industry has been widely recommended as one of
the most appropriate means of industrialising the industrially backward region or countries. The small
scale sector has certain inherent advantages like low capital intensity, high employment generation, more
equitable distribution of income and wider dispersal of industries. The author revealed that the growing
incidence of sickness in small scale sector is a matter of concern. Since this sector is a vital part of the
industrial structure.
Kumar (1997) brought out that the small scale sector has played a vital role in the overall
economic development of a country like India where millions of people are unemployed or
underemployed and most of the entrepreneurs are capable of making only small investment. The small
scale enterprises are also considered as an important instrument for promoting rapid industrial growth by
providing greater employment opportunities, reducing regional disparities and removal of economic
backwardness of the rural and underemployed segments in the country. The study concluded that the
small scale sector performed extremely well in all spheres of industrial activities i.e. production,
investment and export during the period from 1973-74 to 1993-94. The small scale sector achieved all the
employment targets of eight five year plan. In the globalisation era, small scale sector demonstrated its
capability to withstand the forces of competition the results showed that substantial structural changes
have taken place in the structure of employment and gross fixed capital of small scale sector. The results
further indicate that a significant technological change has taken place in the small scale sector during
1972-1988 and also process of capital deepening in small scale sector has been observed.
Gangopadhyay and Wadhwa (1998) analysed the changing pattern of labour productivity,
labour costs and TFP in Indian industries over the period 1973-74 to 1993-94 at the disagreed level. They
divided the entire study period into two sub periods, 1973-84 and 1984-94. It has been found that the
increase in capital intensity was accompanied by gains in labour productivity. The rate of growth of
labour productivity was consistently higher in the second sub-period in all industries. The study also
explored that gains in labour productivity have been associated with falling unit labour costs over the
period. In four major exports driven industries, namely, textiles, leather, metal products and other
manufacturing, the rising labour productivity, capital deepening
and falling labour costs were accompanied by a rise in the rate of growth of employment and wages. Total
factor productivity growth (TFPG) estimated were obtained by two methods, the growth accounting
approach and the production function approach. The analysis of estimates of TFPG obtained from
Translog index showed that the front- runner in the TFPG performance is the export driven industries.
The only industry in which TFP fell during the period 1974-93 was wood and wood products. The most
of industries experienced a turnaround in the early 1980s in respect of TFPG but there seems to be a
reversal in the later years. The results of panel estimation of the Translog production function with and
without industry effects showed: (1) TFP grew at the rate negative two percent during the period 1973-74,
and (2) technical change was not Hicks-neural, but capital augmenting.
The author mentioned that their results are in contrast of the results of the Ahluwalia’s (1991) in
following respect; (i) the present study confirmed a labour saving bias in technical change while the
Ahluwalia’s study found a capitalsaving, bias (ii) Ahluwalia found a structural break in TFPG since 1982-
83 while no such structural break in TFPG from 1980 to 1992 has been noticed.
CHAPTER:-3

RESEARCH METHODOLOGY

Very major country like England, United State, Japan and China has a very strong
manufacturing sector. The global export share of China is remarkably much higher than India. In India
manufacturing contributes 2% of GDP globally1 . For small countries like Thailand, the contribution of
the manufacturing sector to their GDP is 36%, Indonesia and Malaysia it is approximately 25%2 . In
order to increase the GDP share, the Make in India campaign was inaugurated by Prime Minister
Narender Modi in September, 2014 to revive the Indian economy. This wide ambitious campaign gained
a wide range of popularity nationally as well as across the borders. The concept of Make in India is quite
different from the concept of Made in India. Made in India refers to the goods which are manufactured in
India, whereas the concept of Make in India is of different perspectives. In India, we import more as
compared to export. As a result, a lot of money is going outside the country. India has a great potential to
be a great manufacturing hub as far as the resources are concerned.
OBJECTIVES

Through Make in India, an open invitation to the foreign companies is made to invest and set
manufacturing units in India. The main concept of Make in India is to manufacture more in India and
increase the export rate and lower the import rate. To be a potential manufacturing hub, there are four
basic requirements; skilled labor, ease of doing business, good infrastructure and low manufacturing cost.
A number of students throughout the country enroll themselves in various technical and job- oriented
diploma and degree courses such as mechanical, engineering, electronics etc. Moreover present
government is also setting and supporting skill development centre in the country to provide highly
skilled workforces- the basic requirement of the Make in India concept. The creating infrastructure of
global standards is possible in India. Global standards mean creating an environment to operate
technology intensive manufacturing units3 . The main problems which persist in India for doing business
are the strict rules and regulations, a lot of documentation, getting different types of permissions from
different government agencies and regulators which delay the process of setting manufacturing units
along with a great deal of humiliation and wasting valuable time. These problems are thoroughly
addressed in Make in India. For ease of doing business, paperwork is reduced to a minimum, easy
approvals from different regulators, minimum human intervention, and maximum response and help when
it comes to support and grievance redressal. Thus, the role of the government will be a facilitator rather
than a regulator. Another important issue addressed in Make in India concept is the manufacturing cost.
As compared to China, India is a better option for labor at low cost. Significant tax incentives,
subsidies, enabling the conditions to make industries to do well in manufacturing will reduce the
manufacturing cost, ultimately leading to increase the rates of export. Through this campaign, there will
be a critical evaluation of selected domestic companies having leadership in innovations and new
technologies for turning them into global champions, boosting trade and economic growth. The direct and
indirect outputs of the Make in India concept are; more job opportunities reducing unemployment, high
purchasing power to better-living styles, better state of the art of infrastructure, smart cities etc. The major
25 sectors identified to give a trust and push and the focus centers of the Make in India campaign are
automobiles, food processing, renewable energy, automobile components, IT and BPM, roads and
highways, aviation, leather industries, space, biotechnology, media and entertainment, textiles and
garments, chemicals, mining, thermal power, construction, oil and gas, tourism and hospitality, defence,
manufacturing pharmaceuticals, electrical machinery, ports, electronic systems and railways etc. The
Indian government has set an ambitious target of enhancing the manufacturing output contribution to 25%
of GDP by 2025 along with 90 million domestic jobs4 . According to a Washington-based development
institution, India is going to overtake China to clinch the position of the world‟s fastest growing, big
economy by 2016-17. According to World Bank, India is going to be Asia‟s third- largest economy in spite
of declining GDP globally.
CHALLENGES IN THE WAY OF MAKE IN INDIA

The concept of Make in India is undoubtedly an inspiring initiative of the Indian government
which has reduced the risk factors for investing in India for many big foreign industries, but the pace of
the progress is slower as decided and predicted5,6. In this section, the main hurdles and barriers which are
responsible for this slow pace are discussed.
CHAPTER:-4

BACKGROUND OF THE STUDY

Political stalemate or gridlock is of major concern among the policymakers, analysts and
investors. Session by session the working of the parliamentary affairs is interrupted and delaying the
approval of important bills in the parliament houses owing to political gridlock. As a result, the economy
and the mindsets of the investors are confused. Important bills and reforms such as land acquisition and
labor and Goods and Services Tax (GST) are some examples. GST is the most important and critical
reform, required for smooth and efficient business for ensuring low cost and improve tax revenues.
Critical economic reforms required for the implementation of Make in India programme still need
approvals from both houses of the Indian parliament. Foreign investors, who are attracted by ambitious
promises, may opt for other options after getting frustrated by this political stalemate. Global rating
agencies are also worried about the slow pace of reforms in India. The political logjam may lead to
uncertainties and low interest of the overseas investors.
Role of Indian States The role of the Indian states is very crucial in the implementations and
success of the Make in India initiative. India with a federal political system like the United States has a
large and versatile geographical and demographical distribution. The involvement and cooperation of
state-level decision-makers, political leaders and
authorities in a positive way is the basic requirement for the grand success of the new initiative. But it
seems to be a dream as many of the now-NDA governed states are hesitating in its implementations. In
contrast, many of the NDA led states have implemented this concept and even developed some copycat
state-led investment schemes such as “Make in Madhya Pradesh” by BJP led Madhya Pradesh state
government. Thus to make this concept of Make in India a success, a common consensus among the
states is to be made to achieve national progress.
Basic And Better Infrastructure No business can succeed without the availability of high
quality and modern infrastructure. Industrial zone equipped with basic needs of modern and high-speed
communication technologies, integrated logistic arrangements, regular power supplies, connectivity to
transporting areas, ease of availability of raw materials etc. No infrastructure is possible without the
availability of land. This requires a new, transparent, effective and equitable land acquisition law.
However, the approval of such laws is interrupted due to political gridlock.
Power Supply There are many villages in many of the Indian states where still there is either the
limited power supply or no power supply. Thus providing the basic need of the industry i.e. power supply
is the major issues to be dealt with. Throughout the country, power failures and brownouts are very
common endemic particularly in
summers, making Make in India a challenge. India is running short of power with a deficit of ~ 5.1%. The
Comptroller and Auditor General (CAG) recently claimed a loss of $37 billion due to lack of transparency
in the allocation of the coal blocks7 . Under these conditions, the government first should plan to reduce
the nationwide deficit in power generation.
Skilled Manpower Another hurdle in the path of Make in India is the shortage of skilled
manpower. A nation requires skilled human resources in order to prosper and move atop in the global
scenario. Indian comes second after China as far as its population statistics are concerned. In spite of this,
India is still in the list of developing countries. No doubt the power of the India is its youth, but this
power is not utilized in a fruitful manner. The youth is not skilled in a right way and the major reason for
this is our education system. In spite of mushrooming of educational institutions in the last two decades,
skilled manpower is limited. The curriculum is not updated according to the needs and demands. Even no
skilled trainers, teachers and instructors are employed in these educational institutions. The students are
educated theoretically rather than practically. The majority of the talented students passing out from the
different universities and colleges move to foreign countries as the incentives are three to four time in
foreign countries as compared to India. This issue of brain drain and migration is still another cause of
the shortage of skilled manpower in India. The inadequacy of
the skilled manpower has a direct effect on the country‟s GDP and economic progress. However, in order
to tackle this problem Indian government have started „SKILL INDIA program‟ the main aim of which is
to develop multi-skill development programme with a mission for better and highly payable employment
and entrepreneurship for all socio-economic classes.

MANUFACTURING

In general, the status and progress in the manufacturing sector has been less than satisfactory. The
rate of growth in manufacturing has been lower. Exports, a potentially major source of manufacturing
growth, have been on the decline, and so has been the growth in
industrial credit This is across all units, small, medium and large. Capital formation -- the basis for future
growth has been sluggish and growth in manufacturing employment (inclusive of SMEs) has been below
expectations. (4) Interestingly, data from the Reserve Bank of India (RBI) has shown that compared to
2014-15, FDI in Manufacturing fell in 2015-16 to a figure below that in 2011-12. The percentage of FDI
flowing to manufacturing, which has been in the range of 35-40% for the past four years, dropped to 23%
in 2015-16. Rather than manufacturing, services e.g. e-commerce providers like Amazon, Snapdeal and
Flipkart, ride-sharing services like Uber and Ola seem to be drawing a greater share of investment.

Ease of Doing Business (EoDB) On this front, the progress has been literally static since the Rank of 130
continues as seen in Fig 4.
Proposed Best Practices & Recommendations

Moving from Vision to Implementation

1) Currently, the program is being managed as part of DIPP which in turn is part of the Ministry
of Commerce and Industry. There is no dedicated organization for the program. For example, the
government could appoint a minister of Make in India. This project is too important and too critical to
leave it to bureaucrats spread across ministries. (1) This proposal is also of significant importance because
translating vision into operational details devolves on several ministries e.g. Company affairs, skill
development and labor. (4)

2) Policy statements are not sufficient and should not be just a slogan. They should be
translated into operational plans, sub-strategies, schemes and programs. At present the policy content is
missing or not clearly articulated and therefore should be worked out (4)

3) Industrial policy in a federal polity is completely different from that in a unitary structure.
The central government has issued numerous Industrial Policy Statements from time to time. Most are
often objective- oriented political announcements. Further, limiting the states' involvement solely to
EoDB may not be the best way and they must be co-opted in other areas of the program as well. (4).
Talent shortage in critical areas should addressed and Institution building and their strengthening is
required with technical experts needed in all the mission-critical areas. (1)
 4) Often the Make in India campaign has been reduced to being a branding exercise under
which the government claims credit for it pretty much for even factories which routinely being set up in
the country. Every factory inaugurated, every defence deal signed, every shovel stuck into the ground is
often accompanied by the hashtag #MakeInIndia. This is unrealistic and should be avoided. In short there
can be no “Made in India” projects and the entire campaign should be focused on advocacy, promotion
and marketing.

5) There are 10 criteria used in the ‘Ease of Doing Business’ ranking by the World Bank,
among them: Starting a Business, Dealing with Construction Permits, Getting Electricity, Registering
Property, Paying Taxes, Enforcing Contracts etc. There could be therefore 10 departments in the Ministry
of Make in India mirroring these with the task of bringing India to the first rank on all these parameters
within the next 12 months. (1)
CHAPTER:-5

ANALYSIS

This is the organization which is managing the Marketing & Promotion component of the
program . Normally , one would expect this to be organized using projectized or matrix structures and as
a program .

However , from the information available in the public domain it appears that a functional or hierarchical
structure is being followed .This is also understandable , since government departments generally tend to
have such structures when work is ongoing though clear demarcations as in a project / program would be
more beneficial in this instance .

The Make in India initiative is a good candidate for gainfully applying organizational project
management. The entire program can be
visualized as a number of projects in marketing and promotion for each of the 25 sectors of focus. In case
of EoDB projects would be at implemented at the State level with the support of the DIPP at the center.
Projects collectively would comprise a program which are implemented either for each sector or state.
Portfolio management would apply when we are considering selecting and prioritizing and implementing
only some of the projects during a time period.
 Legend - Investors : Foreign Direct or Domestic | Abroad : Countries Foreign Missions | Prof :
Professionals implementing programs / projects | DIPP : Dept of Industrial Policy & Promotion | Sectors :
25 Manufacturing sectors | States: State Governments
CHAPTER:-6

CONCLUSION

To conclude, the concept of Make in India is a very promising and innovative initiative started by
Indian government. The direct and indirect outputs of the Make in India concept include more job
opportunities reducing unemployment, high purchasing power to better- living styles, better state of the
art of infrastructure, smart cities etc. The role of the government is to be a facilitator rather than a
regulator. Through this campaign, selected domestic companies with leadership in innovations and new
technologies are also evaluated for boosting trade and economic growth and for turning them into global
champions. The campaign is still in its initial stages so it will be very early to predict its success.

a) The Policy and Vision stated by the Make in India can benefit from more clarity about its scope and
its inter relationships with other departments and stakeholders.

b) It does not appear that formal program management structure or methods are being deployed as
compared to similar public programs in the government.

c) It would be beneficial to manage the initiative not just as a department within DIPP, but give it higher
status and accountability by either having a separate ministry or deploy a mission mode approach.
d) Organizational project management could be deployed for the initiative in managing programs &
projects and using portfolio management to select or prioritize programs or projects within a timeframe.

e) The areas which could be of immediate attention from a project management perspective would the
organization structure, revisions or adaptations in plans while moving from vision to implementation and
analyzing stakeholders. Next steps would include looking at best practices at project level

REFERENCES

[1] http://articles.economictimes.indiatimes.com/2015-09-
05/news/66241311_1_growth-engine-india-support-jeff-immelt

[2] http://articles.economictimes.indiatimes.com/2016-03-
16/news/71573537_1_ireo-conscient-abu-dhabi-investment-authority

[3]http://auto.economictimes.indiatimes.com/news/industry/autom otive-mission-plan-2016-26-
unveiled-here-are-the-key- highlights/48772090.

[4]http://economictimes.indiatimes.com/industry/auto/news/passen ger-vehicle/cars/toyota-to-
invest-over-rs-1000-crore-in-india-doesnt- rule-out-daihatsusentry/articleshow/48767359.cms
 [5] http://economictimes.indiatimes.com/news/defence/boeing- keen-to-make-f/a-18-
fighters-in-india-ceo-dennis-a- muilenburg/articleshow/50827817.cms

[6] http://indiabudget.nic.in/budget2015-2016/budget.asp
[7]http://indiainbusiness.nic.in/newdesign/index.php?param=indust ryservices_landing/385/3

[8] http://ndianexpress.com/article/india/india-news-india/make-in- india-has-become-a-

movement-in-japan-pm-modi/

[9] http://m.arabianbusiness.com/nakheel-seeks-grow-2-5bn- indian-investment-

portfolio-611062.html

[10] http://m.dailyhunt.in/news/india/english/live-mint-epaper- livemint/make-in-india-key-

for-honeywell-arijit-ghosh-newsid- 50908217

[11] http://mfgtechupdate.com/2015/07/make-in-india-challenges- and-opportunities-for-

manufacturing-sector/