MAKE IN INDIA AND ECONOMIC EFFICIENCY

Submitted by:

Radhika Prasad, B.A. L.L.B.(Hons.)

Roll no. – 2139

2019-2024

Submitted to:

Dr. Shivani Mohan

Assistant Professor Of Economics

September, 2020

Chanakya National Law University, Patna

 INTRODUCTION

Make in India is an initiative of the government of India launched on September 25, 2014 to
improve business environment by easing processes to do business in the country1. One of its
major purpose is to achieve economic efficiency that is assuming minimum cost for
production of a good or service , maximum output and maximum surplus from the operation
of the market. Profit maximization is the basic aim of economic efficiency without any waste
of resources. Make in India and economic efficiency are related in the way that the initiative
seeks to increase manufacturing sectors growth rate to 12-14% per annum. Secondly, to
create 100 million additional manufacturing jobs in the economy by 2020 and thirdly to
ensure that the manufacturing sectors contribution to GDP is increased to 25% by 2022 which
was later revised to 2025. Thus for attaining economic efficiency, this initiative has devised
several plans and processes and seeks to attain its proper implementation. To attain economic
efficiency, giving proper producer incentives is also very important that is to facilitate the
producer with cheaper cost of production and movement of goods and a greater ease of doing
business. Finding right skills set is also important and market should be such that it has the
ability to pay that improves margin2. Make in India is a positive invitation to potential
partners and investors across the world to come and invest in India that will enhance the
economy of India as goods and services would be manufactured here. This was a much
needed programme as the contribution from the manufacturing sector to India’S Gross
Domestic Product especially upto 2014 when this programme came up has remained
stagnated at around 16% for the past 25 years and their was an urgent need to enhance this
contribution for the overall growth of the Indian economy. Thus , the initiative mainly
focuses on 25 sectors of the economy for job creation and skill enhancement. It is important
to know that this policy signals a key objective of the present governments economic policy
that is promotion of rapid manufacturing growth that will play a lead role in India’s growth
progress . It does not call for discouragement or lowering of services growth ; it calls for
services growth to be pulled by manufacturing growth and not vice versa. This all will bring
economic efficiency in India by creating jobs and increasing GDP.

1
Dr. Richa Srivastava, Impact Of Make in India In Indian Economy, 3 IJTSRD 429,733-734(2019)
2
Look east, link west says PM Modi in Make in India launch, Hindustan Times, september 25, 2014
Aims and Objectives

The basic aim of the researcher is to

1) Examine the motive behind Make In India policy

2) Purpose and Reason behind this policy to achieve economic efficiency only
3) The ways by which this policy will help attain economic efficiency

Hypothesis

The researcher is of the belief that the GDP of India is low and it needs to be enhanced to
bring economic efficiency .Make In India is one such programme that will be highly
beneficial in doing so as it will not only by its various programmes enhance GDP but will
also bring more skill and employment among the masses that will definitely lead to economic
efficiency.

Research Questions

The researcher wants to find out

1) The motive behind this policy and the purpose to achieve economic efficiency
2) The various methods by which economic efficiency could be attained

Research Methodology

The researcher will follow doctrinal method for the completion of this project . The
researcher will be using primary as well as secondary sources of data to carry on the research
work.

Sources of Data Collection

Both primary and secondary sources of data will be used which will include observations ,
graphical surveys, books , magazines , journals etc.
Limitation Of Study

Since a researcher is a student of both economics and law , he has access to a limited area.
The researcher has limited time for the project. The researcher is not having access to the
library at present as well.

Scope of study

This project will not only enable to know about the aims, objectives or plans of the Make in
India policy but also how far success has been achieved in increasing economic efficiency .
The total increase in GDP and contribution towards employment generation will also be
shown.

Tentative Chapterisation
1. Introduction
2. Economic Efficiency : Meaning and Analysis
3. Motive and Need of the Policy
4. Purpose of the Policy to achieve economic efficiency
5. Plan and Process to achieve economic efficiency
6. Economic efficiency attained till now
7. Conclusion and suggestions

Bibliography

Books
K K Dewett – Modern Economic Theory ( S Chand Publications)

ISC Economics Class 12 ( Frank Publications)

Websites)
https://www.researchgate.net/publication/334123687_Impact_of_Make_in_India_in_Indian_Econo
my

https://www.makeinindia.com/about

https://www.economicshelp.org/microessays/costs/efficiency/