THE MAKE IN INDIA CAMPAIGN

INTRODUCTION
Make in India is the BJP-led NDA government's flagship campaign intended to boost the
domestic manufacturing industry and attract foreign investors to invest into the Indian economy.
The Indian Prime Minister, Mr. Narendra Modi first mentioned the keyphrase in his maiden
Independence Day address from the ramparts of the Red Fort and over a month later launched
the campaign in September 2014 with an intention of reviving manufacturing businesses and
emphasizing key sectors in India amidst growing concerns that most entrepreneurs are moving
out of the country due to its low rank in ease of doing business ratings.1
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.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. 2

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.

1
http://articles.economictimes.indiatimes.com/2015-09-05/news/66241311_1_growth-engine-india-support-
jeffimmelt

2
https://www.mapsofindia.com/government-of-india/make-in-india.html
SECTORS IN FOCUS

For the Make in India campaign, the government of India has identified 25 priority sectors that
shall be promoted adequately. These are the sectors where likelihood of FDI (foreign direct
investment) is the highest and investment shall be promoted by the government of India.On the
campaign launch, the Prime Minister Mr. Modi said that the development of these sectors would
ensure that the world shall readily come to Asia, particularly to India where the availability of
both democratic conditions and manufacturing superiority made it the best destinations,
especially when combined with the effective governance intended by his administration.3

Automobile

Automobile components

Aviation

Biotechnology

Chemicals

Construction

Defence manufacturing

Electrical machinery

Electronic Systems

Food Processing

IT and BPM

Leather

Media and Entertainment

Mining

Oil and Gas

Pharmaceuticals

3
https://www.indiabudget.gov.in/budget2015-2016/budget.asp
Ports

Railways

Renewable Energy

Roads and Highways

Space

Textiles and Garments

Thermal Power

Tourism and Hospitality

Wellness

Details of achievements under the ‘Make in India’ initiatives in the focus sectors are as
follows :4

(i)     Aerospace & Defence 

 Indigenous defence products unveiled -  Akash Surface to Air Missile System, Dhanush
Artillery Gun system and Light Combat Aircraft
 Exports increased to INR 2059.18 crore (2015-16)  from INR 1153.35 crore (2013-14)
 The Defence Procurement Procedure (DPP) - 2013 amended to introduce Buy Indian-
IDDM (Indigenously Designed, Developed and Manufactured)
 Defence offset policy streamlined:
o 100% Offset claims filed during 2014-16 against 64% during 2008-2013
         Industrial licensing streamlined:
o   119 licenses issued during 2014-16 against 217 during 2001-14
 
(ii)   Aviation
 FDI grew 6 times - from $93 million (2011-14) to $519 million (2014-17)
 Passengers carried by domestic airlines increased by 29%
o 148 Million (2012-14) to 191 Million (2014-16).
 National Civil Aviation Policy (NCAP) to boost regional air connectivity, establish an
integrated ecosystem to promote tourism and generate employment
 160 airports being revived & operationalized
 6 greenfield airports approved
 16 Common User Domestic Cargo Terminals (CUDCT) operationalized
 The GPS-Aided Geo Augmented Navigation system (GAGAN) launched.

4
http://data.conferenceworld.in/IIMTJune2017/P212-219.pdf
 (iii) Basic Metals and Cement
         FDI grew 5.9 times in Mining sector- from $213 million (2011-14) to $1261 million
(2014-17)
 India’s largest blast furnace, Kalyani commissioned at SAIL, Burnpur
 First project to generate power through green technology commissioned at Rashtriya
Ispat Nigam Limited (RINL)
 Expansion of RINL capacity enhancement from 3 MTPA to 6.3 MTPA
 Modernisation of IISCO Steel Plant (ISP), Burnpur :  three fold increase in the hot metal
production capacity
 Modernisation of  Rourkela steel plant: capacity enhancement from 2 MTPA to 4.5
MTPA.
 
(iv) Biotechnology
 First indigenously developed and manufactured Rotavirus vaccine, 'Rotavac', launched
 Current Good Manufacturing Practices (CGMP) Plant inaugurated at CSIR-IIIM, Jammu
for the manufacture of phyto-pharmaceuticals.
 India’s first cellulosic ethanol technology, demonstration, plant developed through
indigenous technology
 30 bio incubators and Biotech Parks supported
 A virtual centre launched across five Indian Institutes of Technology to develop advance
technologies in the area of biofuels.
 Asia’s largest MedTech Zone (AMTZ) being set up in Andhra Pradesh to host
around 200 independent manufacturing units.
 
(v)      Capital Goods & Automotive 
         FDI grew 1.7 times in Automobile and Auto Components - from $3.98 billion (2011-
14) to $6.86 billion (2014-17)
 15% growth in turnover of Auto components sector during 2014-16
 22% growth in exports of Auto components during 2014-16
 16% growth in exports of passenger vehicles in 2016-17
 Major Investments by Global Players- ISUZU Motors, FORD Motor, Mercedes-Benz,
Suzuki Motor, Magneti Marelli
 2.9 lakh people trained by Automotive Skill Council during 2014-16

(vi)    Chemical and Petrochemicals

         Assam Gas Cracker Project commissioned, expected to produce about 2.8 Lakh MT
(Metric Tonne) polymers per annum and generate 1 lakh jobs
         0.44 Million MT Per Annum Polypropylene Plant commissioned at Mangalore
         Polypropylene Unit of Dahej project commissioned - capacity of 1.1 Million MT per
annum of ethylene and 0.4 Million MT per annum of Propylene
         ONGC Mangalore Petrochemicals Ltd.’s aromatics complex commissioned – capacity
of  914 Kilo Tonne Per Annum (KTPA) of Paraxylene and 283 KTPA of Benzene
          Four plastic parks approved in Madhya Pradesh, Orissa, Assam and Tamil Nadu.
 

(vii)  Food Processing
 
 7 Mega Food Parks operationalized creating more than 36,000 jobs during 2014-17
 100 Cold Chain Projects operationalized, 3.69 lakh tonnes food processing capacity
created
 4 Abattoirs projects completed
 Creation of quality testing food labs:
o 27 labs accredited by National Accreditation Board for Testing and Calibration
Laboratories (NABL)
o 20 laboratories notified by Food Safety and Standards Authority of India (FSSAI)
 

CRITICAL ANALYSIS OF THE CAMPAIGN

1. The most negative impact of the Make in India campaign will be in the agriculture sector
of India. It is a well-known fact that Indian Territory has 61% cultivable land. With the
introduction of industrial sectors, the agriculture in India will be neglected somewhat.

2. Since Make in India is primarily based on manufacturing industries, it demands the set-up
of various factories. Usually, such projects consume the natural resources such as water,
land etc. on a large scale. With the rapid devouring of such precious resources, India
might be left with zero opportunity to replenish them, threatening the survival of such a
large population in the near future.

3. The Make in India campaign welcomes foreign countries to manufacture in India with
open arms, this automatically eases up the various restrictions over trade with foreign
countries, inviting the attention of the international commercial companies. However,
these companies will not only seduce the Indian population but also would dominate the
small local entrepreneurs and force them out of business.

4. India is very rich in the agriculture sector. About 60% of the Indian soil is arable. With
the emphasis being given to the Make in India campaign, thousands of companies would
come forth to set up their factories on the land which could be used for cultivation.
Eventually, this set up of manufacturing factories would lead to the permanent disruption
of the agrarian land in the near future.

5. Indian economy is one of the largest economies in the world. It constitutes of three
sectors i.e. agriculture, industry, and services. Now the Indian economy majors up from
the service sector which contributed up to 57% of the GDP. But with the introduction of
the Make in India campaign, the economy is likely to rely completely on the
 manufacturing and exporting while the import industry will remain static. This eventually
will be a huge loss for the other economic sectors and would automatically reduce the
advancement of Make in India.

6. As stated earlier, the brand value of Indian merchandise will definitely increase. But the
Indian upper class, which can actually afford such merchandise, is addicted to the foreign
label. This will eventually become a big hurdle for the local entrepreneurs as a great level
of promotion is required to build the confidence of people in the local brands.
7. One of the biggest problems which are prevailing in India is pollution. According to
statistics, India has a pollution index of 76.50. With the make in India movement, this
pollution level is likely to arise in a couple of years. Eventually, making the condition in
India worse. Hence, Make in India might be economically but it will have an inverse
effect ecologically.5

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