IMPACT OF MAKE IN INDIA ON MANUFACTURING SECTOR

Project Report
(I – 3004)
(Session: - 2022-2023)
Submitted in partial fulfilment of the requirement for the award of
Masters of Commerce
(Affiliated to CCS University, Meerut)

SUBMITTED BY
AMANDEEP KAUR
ROLL No.- RI210023186003
Under the guidance of
DR. Hemlata Agarwal
Ph.D., B. ED, M.COM
Asst. professor

Ram Chameli Chadha Vishvas Girls College, Ghaziabad

Code- 023
1
 CERTIFICATE
This is to certify that Ms. AMANDEEP KAUR of M.COM Semester III (2022-2023)
has successfully completed the project work entitled IMPACT OF MAKE IN INDIA
ON MANUFACTURING SECTOR Under the guidance of Asst. Professor DR.
Hemlata Agarwal.

Project guide/Internal Examiner Signature of the student

Name - Amandeep kaur

Enroll No – M21043178

Roll No – RI210023186003

2
 DECELARATION

I AMANDEEP KAUR student of M.COM semester III of RAM CHAMELI CHADHA

VISHVAS GIRLS COLLEGE hereby declare that I have completed the project on

IMPACT OF MAKE IN INDIA ON MANUFACTURING SECTOR for the academic

year (2022-2023).

The information presented through this project is true and original to the best

of my knowledge.

AMANDEEP KAUR

ROLL NO – RI210023186003

3
 ACKNOWLEDGEMENT

Success is never achieved single handed so, it is our duty to acknowledge all

those who have provided a helping hand in making this project a success.

Firstly, I would like to express my deep sense of gratitude, towards my project

guide Dr. Hemlata Agarwal for valuable guidance, co-operation and approval

given in successful competition of this project work.

I was also wish to express my sincere gratitude to Dr. Neetu Chawla principal of

RAM CHAMELI CHADHA VISHVAS GIRLS COLLEGE for providing me an

opportunity to do my project work on “IMPACT OF MAKE IN INDIA ON

MANUFACTURING SECTOR”. This project bears an imprint of many people.

Last but not the least a great deal of appreciation and best wishes to all my friend

for their contribution

4
 INDEX

S.NO. TITLE PAGE NO.

1 INTRODUCTION 7

2 LITERATURE REVIEW 8-9

3 OBJECTIVE OF STUDY 10

4 RESEARCH METHODOLOGY 11

5 HISTORY 12-14

6 MAKE IN INDIA IV MODI’S PLAN 15-16

7 PROCESS OF MAKE IN INDIA 17

8 ADVANTAGES AND DISADVANTAGES 18

9 CHALLENGES 19-20

10 CRITISM AND CONCERN 21

11 FOUR PILLARS OF MAKE IN INDIA 22-24

12 MANUFACTURING IN INDIA 25-28

5
 MANUFACTURING HAS CONTRIBUTED TO INDIA’S
13 29
ECONOMIC GROIWTH

14 SHARE OF MANUFACTURING IN GVA 30

15 SHARE OF FDI IN MAKE IN INDIA 30

16 NET FDI INFLOW AND MAKE IN INDIA PROGRAMME 31

17 FOREIGN INVESTMENT IN INDIAN MANUFACTURING 32

18 PROPORTION OF FDI GOING TO MANUFACTURING 33

19 MAKE IN INDIA AND EMPLOYMENT TREND 34-35

INDIA EASE OF DOING BUSINESS OVER LAST SIX

20 36
YEAR’S

21 FINDING OF THE STUDY 37

22 CONCLUSION 38

23 SUGGESTION 39

24 BIBLIOGRAPHY 40

6
 INTRODUCTION
India is a nation which claims to have
a huge number of natural resources.
The country boasts its skilled and
unskilled workforce having the
requisite skill and determination.
Labour here is aplenty. With all eyes
on the east for outsourcing activities,
India’s aims at becoming a preferred
manufacturing destination for its
partners as well as new investors. To tap this opportunity, make in India was
launched as a marketing campaign on September 25, 2014 with an objective to
attract existing shareholders as well as strategic investors to invest and choose
India as their manufacturing place. In order for a complete manufacturing
transition, the country needed a strategy that empowers and enables in an
unvarying manner, to attain global competitiveness. Thus, it was imperative to
welcome capital and technology across the globe to make the foundation of the
program.The program aims to increase the share of manufacturing sector in the
gross domestic product (GDP) from 16% presently to 25% by 2025. With 25
target sectors ranging from automobiles to IT and business processes. Make in
India seeks to enhance job creation, move up the ease of doing business ladder,
foster innovation and promote development of skills. In this process, the nation
aims to attract Foreign Direct Investment (FDI), with a promise to the investors
for making it a pleasant experience with minimum bureaucracy.
To make the program a success, the country needs to be in line with the foreign
technology as well as capital. With gradual inflows of funds and expertise from
outside the border, India will be able to make a huge chunk of its GDP out of
manufacturing. The presence of huge jobless crowd explains the urgency to
launch this program. Continuous engagement of the manpower in the aforesaid
sectors is expected to reduce the number of the unemployed. With opening of
new sectors like defence and railways, the program is expected to give a long-
term benefit rather than short term results.
But make in India is much more than an inspiring slogan. Most importantly, it
represents a complete change of the government’s mindset – a shift from
issuing authorities to business partner, in keeping with Prime Minister’s tenet of
“Minimum Government, Maximum Governance”.

7
 LITERATURE REVIEW

M.Shettae & M.Sheshg (2017) the article entitled “Impact of Make in India
Campaign: A global perspective”. This paper covers overview of Make in India
campaign, sector covered, challenges, opportunities and foreign investment in
India manufacturing. The data has been extracted from Ministry of Commerce,
government of India, various bulletins of RBI and authenticated websites. This
paper helps us to study the impact of “Make in India” mainly on manufacturing
sector make in India mission is one such long term initiative which will enalize
the dream of transforming India into manufacturing hub. The study found that
“Make in India” will bring a drastic change in the fields like Automobiles,
aviation, biotechnology, defence, media, thermal power, oil gas, and
manufacturing sector mainly. Thus, we can conclude that, despite the fact that
“Make in India” though come at right time, its execution remains a big challenge.
Srivastava (2019): the article entitled- “Impact of Make in India” in Indian
economy. This paper mainly covers the make in India overview, impact of make
in India on Indian economy and various govt. initiative to boost investment in
Indian economy. Make in India will boost foreign investment in the economy
and on the other, make in India will help the country being self-reliant in terms
of manufacturing of products. It is like inviting the countries to setup their
companies in India and manufacturing in the territory of our country. On
concluding, it can be safely stated that make in India is an opportunity for
everyone; it is a prospect, which if given time will flourish like a spring flower
and would provide with expected fruit.
Shaikh and Khan (2017)- the paper entitled “Make in India campaign- PROS,
CONS AND IMPACT ON INDIAN ECONOMY”. In this research paper “Make in
India” an attempt has made to review the pros and cons of this concept and to
understand the impact of it on Indian economy. Make in India creates job
opportunities and looks for overall development of India, but like every coin has
two sides Make in India is not in favour of Agriculture development. The
government of India has taken a no. of step to further encourage investment
and further improve business climate. So, it can be concluded that “Make in
India” is an ambitious project, with an aim for sustainable growth of the
economy. With relevant policies towards this end, it is possible to make in India
the power has of manufacturing sector in the world. And make in India scheme

8
also focus on producing products with zero defects and zero effects on
environment.
K. Kalaivani (2015) the article entitled “A Study on the Impact of Make in India
on HRM Practices - An overview”. The study helps to understand the impact of
make in India on the HRM practices followed in our country. The study also
covers the synergy between the HRM practices and the job opportunities. The
study found that, a significant positive and meaningful relationship between
HRM practices and the make in India. The study also found that, HRM practices
become the means whereby designing new culture requires that HRM
professionals and ahead of the cultural change curve with innovative and
exciting HRM practices.
Dr. K. V. Ramana (2015) the article entitled “Make in India Illusion or Possible
Reality Project?” The paper covers issues of the make in India, sectors covered,
worldwide and positive responses and some critics. The study also covers the
challenges that the project and movement will face. The study found that, this
campaign attracts foreign investments and boost the manufacturing sector of
India has been timed to perfection.
S. Soundhariya (2015) the article entitled “Make in India - Scheme for
transforming India” The paper discusses about Make in India scheme, its
opportunities, challenges, changes needed and some examples of different
investors invested so far. The study found that, Make in India campaign surely
makes India an investment destination and global hub for manufacturing and
innovation.
Seema Sangwan (2015) the article entitled “Making Make in India realism: role
of FDI”. This study focuses on the changes in FDI rate after introduction of Make
in India by Modi and growth due to increase in the FDI rate. The study found
that, there is high correlation between industrial production and FDI inflows.
The study also found that, the effect of FDI on economic development ranges
from productivity increased to enable greater technology transfer.

9
OBJECTIVE OF STUDY

ANALYSIS THE PROGRESS OF MANUFACTURING

SECTOR AFTER MAKE IN INDIA

ANALYSIS THE FDI INFLOW AND MAKE IN

INDIA

ANALYSIS THE GROWTH OF EMPLOYMENT

AREA WITH THE PROGRESS OF
MANUFACTURING SECTOR

TO DETERMINE WHETHER THE CAMPAIGN HAS BEEN

SUCCESSFUL OR NOT REGARDING FUTURE COURSES OF
ACTIONS

10
 RESEARCH METHODOLOGY

The main aim of the paper is to critically examine the make in India initiative in
the light of the current scenario. The paper has dealt with relevance of the
program, the road blocks and reforms needed to make it a success.

The paper is based on secondary data collected from various sources. It draws
heavily from literature, research papers, articles published in newspaper &
magazines, blogs and reference website and reports.

The first part of the paper deals with importance of manufacturing sector and
relevance of make in India in this construct.

The second part deals with the major road blocks and the government initiatives
to resolve the same.

The third part discusses common problems and suggested solutions to these
problems.

11
 HISTORY

The Make in India initiative was launched by the Prime Minister of India, Shri
Narendra Modi in September 2014 as a part of wider set of nation-building
initiatives. It was devised to transform India into global design and
manufacturing hub and was a timely response to a critical situation. By 2013,
the much-hyped emerging markets bubble had burst and India’s growth rate
had fallen to its lowest level in a decade. The promise of the BRICS nations
(Brazil, Russia, India, China, and South Africa) had faded, and India was tagged
as one of the so called ‘Fragile-Five’. Global investors debated whether the
world’s largest democracy was a risk or an opportunity. India’s 1.2 billion citizens
questioned whether India was too big to succeed or too big to fail. India was on
the brink severe economic failure, desperately in need of a big push.
Make in India was launched by Prime Minister against the backdrop of this crisis
and quickly became a rallying cry for India’s in-numerable stakeholders and
partners. It was a powerful, galvanising call to action to India’s citizens and
business leaders, and an invitation to potential partners and investors around
the world. But Make in India is much more than an inspiring slogan. It represents
a comprehensive and unprecedented overhaul processes and policies. Most
importantly, it represents a complete change of the government’ mindset – a
shift from issuing authority to business partner, in keeping with Prime Minister’s
tenet of ‘Minimum Government, Maximum Governance’.
The Make in India is intended to
• Inspire confidence in India capabilities amongst potential partners
abroad, the Indian business community and citizens at large
• Provide framework for a vast amount of technical information on 25
industry sectors
• Reach out vast local and global audience via social media and constantly
keep them updated about opportunities, reforms

12
In fact, the new initiative is the fourth attempt to promote ‘make in India’ in
manufacturing

MAKE IN INDIA - I
• THE RAJ

MAKE IN INDIA - II
• THE NEHRU ERA

MAKE IN INDIA -
III
• FROM RAO TO MOHAN

MAKE IN INDIA - IV
• MODI'S PLAN

13
14
 MAKE IN INDIA – IV: MODI’S
PLAN
“MAKE IN INDIA” is a type of swadeshi movement which covers 25 sectors of
the Indian economy. This campaign is launched by Prime Minister of India, Shri
Narendra Modi on 25th September 2014 to encourage companies all over the
world to manufacture their products in India. To make this campaign more
successful, FDI is permitted in all the sectors expect space industry (74%),
defence industry (49%), and media (26%). The world bank latest “Ease Of
Doing Report (2019)” acknowledges India at 77th position in 2019 after jump 23
points against its Rank of 100th in 2018 among 190 countries.
“MAKE IN INDIA” campaign was launched with three major objectives.
1. To boost up the growth of manufacturing sector from 12% to 14% per
annum.
2. To create 100 million jobs by 2022.
3. To ensure contribution of manufacturing sector to GDP is increased to
25% by 2025.
MAKE IN INDIA main focus was to create a conductive environment for
investment, development modern and efficient infrastructure and various
other initiatives to attract foreign capital. The initiative towards on 25 sectors
mainly for job creation and skill enhancement and aimed to transform India
into a global campaign and as a main manufacturing hub. “ZERO DEFECT ZERO
EFFECT” slogan was also coined by Prime Minister “Narendra Modi” as a
essence of Make in India that manages various process, technology, materials
in such a way in which we can produce product with no defects with no
adverse environment and ecological effect.

15
The government of India was identified these 25 sectors under Make in India
campaign. These are those sectors where likelihood of FDI (foreign direct
investment) is highest. On the campaign launch, the Prime Minister Modi said
that “the development of these sectors would ensure that the world shall
really come to Asia, particularly to India where availability of both
democratic conditions and manufacturing superiority made it the best
destinations, especially when combined with effective governance intended
by his administration”.

16
PROCESS OF MAKE IN INDIA

“MAKE IN INDIA” recognizes an ongoing global campaign and ease of doing

business are the two important factors to give a boost to entrepreneurship not
only in manufacturing sector but also in other sectors.
“Zero Defect Zero Effect” slogan emphasizes on production cycle. It means that
producing goods with zero defect and there should be no adverse effect on the
environment. Wieden Kennedy designs the campaign with the launch of a portal
and the brochures in different sectors. Norms and procedures regarding the
manufacturing application are now available online. And validity of licenses
increases to 3 years.
In the event at Mumbai Metropolitan Region Development Authority
(MMRDA), around 2500 international and 800 from domestic, business team
from 72 countries, 17 states of India and foreign government delegates from 68
countries have attend “Make in India Week”. The aim is to de-licensed and de-
regulate the industry during the entire life cycle of a business.

17
 ADVANTAGES &
DISADVANTAGES

India is a treasure of natural resources. Skilled and unskilled labour is easily

available at lower rates as compared to the other countries. Due to its central
location and outsourcing hub of the world, India is becoming the most preferred
manufacturing destination for the investors across the world. The main motive
of this initiative is to fulfil the demand and boost the Indian economy.
On the other hand, India ranks low on the “ease of doing business index”. Labour
laws are still not updated according to the Make in India campaign. This is one
of the main disadvantages of manufacturing and investing in India.
Here is a quick snap of the advantages and the disadvantages of the make in
India:

ADVANTAGES DISADVANTAGES
•DEVELOPS JOB OPPORTUNITIES • NEGLIGENCE IN AGRICULTURE SECTOR
•IMPROVES GDP •DEPLETION OF NATURAL RESOURCES
• STRENGHTS THE RUPEE • DISRUPTION OF LAND
• UPGRADE TECHNOLOGY • LOSS OF SMALL ENTERPRENUERS

18
 CHALLENGES

The Make in India is aimed at making India a manufacturing hub and the
government is pulling out all the stops to make the investment smooth. The
government has created a dedicated system to answer all the queries of
business entities with 72 hours. This system will closely monitor all the
regulatory system to make them simple and rational. The government has
created a concept but the driving through this is not so simple. This concept will
create several challenges for Indian managers. Some of them are disclosed
below.
Creating the most enthusiastic and dedicated team – the first and most
important challenge for the Indian managers to make this campaign
successful is to create the most enthusiastic and dedicated them. The
manager has to identify the hidden talent in the staff members who can
dedicatedly work on the projects.
Creating a health business environment – creating a healthy nosiness
environment is perhaps another challenge for the business development.
It has been observed that Indian managers have been most stringent
when it comes to innovation and development.
Creating competitiveness of Indian manufactures goods - creating
competitiveness of Indian manufactured goods is also a challenge ahead.
It found that Indian products cannot sustain in the foreign competitive.
To keep pace with technological development – fast technological
development would be the requirement of the future dates. The Indian
managers will have to keep pace with technological development taking
place abroad. This perhaps one of the challenges for them.

19
New competition from several countries of the world – the Make in India
campaign will create new competition from several countries of the world
for the Indian managers. They will have been to be ready to tackle this
competition.
Development of skills and talents – development of skills and talent in
Indian managers and workers is another challenge. The managers will
have to start skill development programs for the staff members.
Creating labour intensive technology – creating labour intensive
technology is another challenge against Indian managers. Since, India is a
labour surplus economy, only the development of technology is not
enough, but labour-intensive technology is required. if this is not taken
care of, it will increase unemployment India.
Creating competitive atmosphere for the employers – creating
competitive atmosphere for the employers is also required for success of
Indian enterprises in the competition of foreign companies.
Financial challenges – financial challenges are also very important point
to be considered. It has been observed that Indian companies prove to be
weaker than the foreign companies in terms financial consideration. The
Indian managers are challenged to find out newer ways and means of
generating finance.

20
 CRITICISM & CONCERN

Through Make in India campaign, the government has till early October
attracted INR 2000 crore worth of investment proposals. Labour reforms and
policy reforms are fundamental to the success of the Make in India campaign.
But it is observed that it has not yet been implemented. There are many
technology-based companies are not pleased with in the campaign launch and
to contribute to get their components which are manufactured by China.
The Make in India campaign is built on layers of collaborative efforts. There has
been most of Union Ministers, Secretaries to the government of India and
industry leaders together to debate and formulate an action plan for the next
three years. They aim to raise the contribution of the manufacturing sector to
25% of the GDP in the coming years.

21
 FOUR PILLARS OF MAKE IN
INDIA
The “Make in India” initiative is based on four pillars, which have been identified
to give boost to entrepreneurship in India, not only in manufacturing sector but
also other sectors.
NEW PROCESS: “Make in India” recognizes “ease of doing business” as the single
most important factor to promote entrepreneurship. A number of initiatives
have already been undertaken to ease business environment. The aim is to de-
license and de-regulate the industry during the entire life cycle of a business.

NEW INFRASTRUCTURE: availability of modern and facilitating infrastructure is

a very important requirement for the growth of industry. Government intends
to develop industrial corridors and smart cities to provide infrastructure based
on state-of-the-art technology with modern high-speed communication and
integrated logistic arrangements. Existing infrastructure to be strengthened
through upgradation of infrastructure activities are supported through fast
paced registration system and accordingly infrastructure of intellectual property
rights registration set-up has been upgraded. The requirement of skills for
industry are to be identified and accordingly development of workforce to be
taken up.

22
NEW SECTORS: Make in India has identified 25 sectors in manufacturing,
infrastructure and service activities and detailed information is being shared
through interactive web-portal and professionally developed brochures. FDI has
been opened up in defence production, construction and railway infrastructure
in a big way.
NEW MINDSET: industry is accustomed to see government as a regulator. ‘Make
in India’ intend to change this by bringing a paradigm shift in how government
interacts with industry. The government will partner industry in economic
development of the country. The approach will be that of a facilitator and not
regulator.
The Make in India program has been built on layers of collaborative effort. There
has been from union ministers, secretaries to the government of India, state
government, industry leaders and various knowledge partners. A national
workshop on sector specific industries in December 2014 brought secretaries to
the government of India and industry leaders together to debate and formulate
an action plan for the next three years, aimed at raising the contribution of the
manufacturing sector to 25% of the GDP in the coming years.

23
These exercises resulted in a road map for the single largest manufacturing
initiative undertaken by a nation in recent history. They also demonstrated the
transformational power of public-private partnership, and have become a
hallmark of the Make in India program. This collaborative model has also been
successfully extended to include India’s global partners, as evidenced by the
recent in-depth interactions between India and United States of America.
In short space of time, the obsolete and obstructive frameworks of the past have
been dismantled and replaced with a transparent and user-friendly system that
is helping drive investment, foster innovation, develop skills, project IP and build
best-in-class manufacturing infrastructure. The most striking indicator of
progress is the unprecedented opening up of key sectors- including railways,
Defence, Insurance and medical devices- to dramatically higher levels of foreign
direct investment.

24
 MANUFACTURING IN INDIA

With $2.3 trillion in GDP, India is the world’s ninth-largest economy and the third
largest by purchasing power party at $8 trillion. Yet, manufacturing accounts for
only 16% of the country’s GDP, compared with the services sector’s nearly 52%.
India represents only 2% of the world’s manufacturing output, a 10th of what its
neighbour China contributes. Clearly, India is punching below its weight in
manufacturing.
Growth in manufacturing is crucial for India’s economic development. To
capitalize on the demographic dividend, India must create nearly one million
jobs per month over the next decade. Manufacturing has the potential to
provide large-scale employment to the young Indian population there by enable
a significant section of the population to move out of poverty. With this in mind,
the Indian government has adopted “MAKE IN INDIA” as a core policy initiative
to encourage and accelerate growth of the country’s manufacturing sector.
In 2014, the government of India launched its “Make in India” initiative as a part
of India’s renewed focus on manufacturing. A slew of reforms was taken to
boost manufacturing, design, innovation, and start-ups in India.
The “Atma Nirbhar Bharat” campaign announced in 2020 was also intended to
further boost local manufacturing under its stated goal of making India
economically self-sufficient.
India has a great scope and potential in manufacturing, given its demographic
dividend and reasonably cheap labour. However, largest investment, upskilling
of workforce and upgrading infrastructure are some of the areas where more
work must be done.

SCENARIO OF INDIA’S MANUFACTURING SECTOR

• Manufacturing is among the major economic activities that involves
value addition that has consequential positive multiplier effects in the
economy. India has the fifth largest manufacturing base in the world.
• As per the second quarter report of the quarterly employment survey
conducted by the union Ministry of labour, the manufacturing sector
accounted for nearly 39% of all the employment generated in the
selected nine sectors.

25
 • More than 45% of the manufacturing output is obtained from the
MSME sector in India.
• over the years, there are certainly a handful of domains where India has
carved a position of manufacturing leadership such as apparel&
accessories, textiles, drugs & pharmaceuticals, petroleum products
and motor vehicles.

WHAT IMPETUS HAS BEEN GIVEN TO MANUFACTURING IN INDIA

✓ INFRA DEVELOPMENT PROJECT: for instance, the national infrastructure
pipeline (NIP) built on a whole-of-government approach, is already place
covering the FYs 2019-20 to 2024-25.
o the statistics available on India Investment Grid revel that there
are 15,454 projects available involving a total project cost of
$1,981.83 billion as on May 5, 2022.
o The national industrial corridor development programmes were
launched to facilitate the integrated development of industrial
smart cities having plug and play infrastructure along with multi-
modal connectivity.
o also, a number of production-linked incentive (PLI) schemes have
been announced since 2020 for various sectors that incentives
manufacturing with a goal to achieve ‘Atma Nirbhar Bharat’.
✓ Manufacturing in warehouses: The central Board of indirect taxes and
custom has brought forward a new and improved version of the
programme focused on manufacturing and other operations in bonded
warehouses.
o Manufacturing in warehouses results in saving working capital,
which is usually scarce in case of small enterprises and helping in
better positioning of MSMEs in the international market by
shortening the delivery schedule in the global supply chain.
o The bonded manufacturing schemes has been revamped by CBIC
to enable organisations gain competitive advantage.

26
WHAT IS BONDED MANUFACTURING SCHEME
To support Make in India programme, the CBIC launched bonded
manufacturing scheme under the Customs Act, 1962.
Under this programme, a manufacturing unit can import goods (both
inputs and capital goods) under customs duty deferment with no interest
liability.
The scheme has no investment threshold and export obligations
The duties are fully remitted if the goods resulting from such
manufacturing operations done in bonded warehouses are exported.
The onboarding to the bonded manufacturing programme is fully digital
and the microsite for the same is available on Invest India portal

WHAT CAN BE DONE TO BOOST MANUFACTURING IN INDIA

❖ Infrastructure investment: a multi-pronged approach should be adopted
to support manufacturing with the focus largely on large-scale
manufacturing investments as it will itself create enormous growth
opportunities.
o Research has shown that investment in hard infrastructure also
results in reduction of logistic cost of manufacturing.
❖ Policy interventions: a final conceptual piece of India’s manufacturing
strategy has to be the design of policies to increase worker skills, and to
increase access to finance for its firms
o The latter is a general need across the economy, but manufacturing
firms are more likely to require fixed capital investments, and are
hurt more by lack of adequate finance for expansion, upgrading, or
working capital.
❖ Judicious import policy: through judicious use of import policy,
production within the country can be regulated with the objective of
generating employment in the economy.
o Export to international markets, facilitated by customs, can also
be boosted from the domestic surplus generated from the
manufacturing capability within the country.
❖ Eliminating ‘Policy Casualness’: the spate of policy announcements
without having the preparedness to implement them is ‘policy
casualness’. The government needs to take into account the implications
of implementation deficit in its decisions.
27
 o Strong and carefully designed policy implementation would
improve India’s overall investment climate, thereby boosting
investment, jobs, and economic growth.
❖ Stable power supply: stable, low cost and uninterrupted power is vital to
promote the growth of the industries.
❖ State specific Plans: currently manufacturing is mainly concentrated in a
few states like Maharashtra and Gujrat which cover a substantial portion
of India’s geographical area.
o States like Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh,
Odisha, Rajasthan, Telangana, and west Bengal also have large
land areas that can contribute to the success stories of Indian
manufacturing.
o The reasons for less manufacturing activity in these states have to
be carefully examined, and based on this, state specific
industrialisation strategies need to be devised and implemented in
mission mode with active hand holding by the central
government.
❖ Imparting skill: The quality of teaching in schools and colleges must be
improved. The high-quality vocational training must be provided within
the education system.
o India’s labour productivity, through increased in the last decade, is
lower than that of China. This should be addressed to compete in
the global market. Introduction of vocational courses under New
Education Policy 2020 is a welcome step.

28
 MANUFACTURING HAS
CONTRIBUTED TO INDIA’S
ECONOMIC GROWTH

▪ India’s GDP of USD 691 bn makes it the 10th largest economy in the world
and 4th largest in terms of purchasing power party.
▪ One of the fastest growing economics in the world-growing at over 8% p.a
for the last 3 years.

 World’s second largest small car

market.
Manufacturing
 One of only three countries that makes
contributes to:
its own supercomputers.
▪ 79% of FDI  World’s largest producer of milk, tea
investment and pulses and the world’s largest
▪ 27% of India livestock population.
 Second largest producer of food
GDP
including fruits and vegetables.
▪ 53% of Indian
 World’s largest diamond cutting and
export polishing centre and the second largest
jewellery market.

29
 Share of Manufacturing in GVA

Share of manufacturing sector in Gross Value Added (GVA) hanging around

17.14 to 17.80 percent during 2008-09 to 2014-15, increased to 18.15 percent
in 2015-16 and remained almost at the same level till the year 2018-19. During
2019-20, manufacturing share dropped due to COVID-19 pandemic and the
nation-wide lockdown initiated to restrict the same in March 2020.

Note: GVA are at Constant Price (Base Year 2011-12); Data for 2018-19 and
2019-20 are provisional

SHARE OF FDI IN MAKE IN

INDIA
In the report titled ‘The Lion is on the move’ it has been reported that in less
than 12 months of the launch of the Make in India initiative, FDI has increased
to 24% to 45 billion from 36 billion. The top 10 sectors for 2014-15 attracting the
highest FDI are presented below

30
 Net FDI inflows and make in
India program

From 2009 to 2014, FDI has remained quite volatile and while comparing the
2009 FDI inflows (35.58 US billion dollars) to 2014 FDI inflows (34.57 Us billion
dollars), there was a very little change in 5 years which may be because of
constantly changing business environment and weak FDI policies. 74% of
respondents have agreed that FDI inflows increase through the Make in India
program in this dissertation’s primary study which reflects the analysis of data
of World Bank. There was a significant jump in FDI inflows after 2014 (which is
the Make in India launch year). The FDI inflows increase from 34.57 US billion
dollars to 44.009 US billion dollars in the period 2014 to 2015. From the year
2015-2018, there was little change in FDI year-on-year. In the year 2019, there
was again a significant jump in FDI to value 50.61 US billion dollars. This
increasing FDI from the year 2014 to 2019 suggests that make in India might be
successful in creating an excellent business environment with its innovative and
business favourable policies and initiatives

31
 FOREIGN INVESTMENT IN
INDIAN MANUFACTURING

Table and figure reveal that, the most recent FDI data from the Reserve Bank of
India, broken up by sector, since Make in India specifically concerns
manufacturing. After an encouraging jump to a record of $ 9.6 billion in 2014-
2015, FDI in manufacturing actually fell to 8.4 billion in 2015-2016.

32
 PROPORTION OF FDI GOING
TO MANUFACTURING

Table and figure reveals that, the percentage of FDI flowing to manufacturing
sector, which has been in the range of 35-40% for the past four years, dropped
to 23% in 2015-16. Rather than manufacturing, services like e-commerce
providers i.e. Amazon, Snapdeal and Flipkart, ride sharing services like Uber and
Ola seem to be drawing a greater share of the investment.

33
 Make in India and Employment
Trends
The 25 sectors covered under the Make in India initiative include Automobile &
Automobile Components (merged as NIC code 2 digit level is the same), Aviation,
Biotechnology, Chemicals, Construction, Defence Manufacturing/Space
(merged as NIC code 2 digit level is the same), Electrical Machinery, Electronic
Systems, Food Processing, IT & BPM, Leather, Media & Entertainment, Mining,
Oil & Gas (merged as NIC code 2 digit level is the same),Pharmaceuticals, Ports,
Railways, Roads and Highways (merged as NIC code 2 digit level is the
same),Renewable Energy & Thermal Power (merged as NIC code 2 digit level is
the same),Textiles and garments, Tourism & Hospitality, Wellness. The
employment trends under the Make in India sectors maybe seen in Table

The total employment generated in the Make in India sectors was 39.66 million
in 2004-05 which increased by 164 per cent to 104.89 million in 2011-12, mainly
due to the big jump in the construction sector. The employment created in the
Make in India sectors as a proportion of total employment was 8.6 per cent in
2004-05 and 22 per cent in 2011-12. Although it is too early to assess the impact
of the Make in India initiative on employment, as per the result of the last

34
Quarterly Employment Survey in Select Sectors conducted by Labour Bureau
reveals an increase in employment in some of the sectors covered under Make
in India.

As maybe seen in Table there has been an increase in employment in the IT/BPO,
textile and leather sectors. However, it is worthwhile to mention that in the
Make in India barring construction, tourism, wellness, food processing and the
leather industry the rest of the sectors are capital intensive industries requiring
skilled labour.

35
 INDIA’S EASE OF DOING
BUSINESS OVER LAST SIX
YEARS

In 2014, when Narender Modi took initiative for “Make in India”, India was at
142nd rank in the ‘world Banks ease of doing business’ list. Since then, the rise
has been consistent. In 2018, country jump 23 places from 2017 to rank 77th
after fulfilling the criteria of taxation, insolvency and other areas.
• As it is consistency rising, in 2019 it ranks 63rd which was 77th in 2018 so it
denotes that India simplified the procedure of doing business by removal of
various constraints like abolishing filing fees for incorporating company
electronically.
• And India ranked 63rd in 2019 among 190 countries in the world (report
released by “World Bank Ease of Doing Business Report” on 24 October, 2019).

36
 FINDINGS OF THE STUDY

 Make in India will bring a drastic change in the fields like automobiles,

aviation, biotechnology, defence, media, thermal power, oil and gas and
manufacturing sector.
 The job opportunities are multiples and opened the doors without any

limitations.
 Through continuous foreign investments, the progress of the Indian

economy can be made sustained.

 The challenges and threats for the human resource sector will be refined

in the sectors of the economy.

 This initiative creates great awareness about the growing technology.

 Manufacturing sector of India has the potential to reach US$ 1 trillion by

2025.
 “Make in India” initiative create great awareness about growing

technology also multiplies job opportunities.

37
 CONCULSION

Manufactured has emerged as one of the high growth sectors in India. The Make
in India campaign helps to place India on the world map as a manufacturing hub
and give global recognition to the Indian economy. India’s ranking among the
world’s 10 largest manufacturing countries has improved by three places to sixth
position in the coming years. The proposal of making in India will boost
manufacturing the electronic manufacturing market in the country. This in turn
will focus on electronic manufacturing and plans to set up electronic clusters
across various towns and cities. The large investment in manufacturing will bring
in more capacity creation in the country. The tax reliefs given to start ups and
MSME’s will boost sustainable employment and the quality of start-ups in the
design led manufacturing sector. Make in India mission is one such long term
initiative which will realize the dream of transforming India into manufacturing
hub. Make in India campaign also focuses on producing products with zero
defects and zero effects on environment also help to improve the quality of
Indian product so that we can complete globally with impacts on developing
industrial corridors and smarts cities, the government aims to ensure holistic
development of nation. The corridor would further assist in integrating,
monitoring and developing a conductive environment for the Industrial
development and will promote advance practices in manufacturing.
At last, we can conclude that “Make in India” is opportunity for everyone, it is
prospect. Which will flourish like a spring flower after a time and it would
provide expected fruits.

38
 SUGGESTIONS

❖ The extra impetus by the government on initiatives like skill development

has been proposed to provide essential support to make in India to thrive.

❖ We should manufacture goods in such a way that they carry zero defects

and goods with zero effect that they should not have a negative impact

on the environment.

❖ Reforms like bringing more sectors under the automatic route, increasing

the FDI cap and simplifying the procedural delays has to be initiated.

❖ India should consciously work towards attracting greater FDI into

Research and Development.

39
 BIBLIOGRAPHY

❖ https://en.wikipedia.org/wiki/Make_in_India
❖ www.doingbusiness.org
❖ The Financial Express.com
❖ Ease of doing business.org.
❖ The Hindu.com
❖ https://www.drishtiias.com
❖ https://www.ibef.org/industry/manufacturing-sector-india
❖ https://www.slideshare.net/ShivamSingh1247/make-in-india-the-way-
ahead
❖ https://www.pmindia.gov.in/en/major_initiatives/make-in-india/
❖ https://www.researchgate.net/publication/334123687_Impact_of_Mak
e_in_India_in_Indian_Economy
❖ https://www.ijcrt.org/papers/IJCRT1802932.pdf

40