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Make In India: A Literature Review

2018, Journal of emerging technologies and innovative research

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MANTHAN: Journal of Commerce and Management

Annu Aggarwal

India’s growth performance has been diverse yet fascinating over a period of time. While agriculture and manufacturing were the dominant sectors during the pre-industrialisation and industrialisation period respectively, more recently, the services sector has emerged as the most important sector in terms of its contribution to GDP. The growing demands of service sector and its importance in the economy has led to a concern about the situation of India’s manufacturing sector. This study analyses the ‘Make in India’ initiative of the present government launched in September 2014, with the twin objectives of developing India as hub of business and manufacturing and generating massive employment opportunities for India’s teeming young population. The analysis indicates that Indian economy is gaining momentum slowly, and growth estimates are in line with projections made. India also has the best prospects for the growth opportunities in coming decade. Since this concept is new, it will t...

Dr.Ashutosh Gaur

This paper analyses the " Make in India " program in larger canvases and evaluates challenges at national and international level. Prime Minister Narendra Modi announced Make in India program from the Red Fort during his maiden speech in the year 2014. The objective of this program is to boot manufacture sector in India. This very ambitious plan gain worldwide appreciation. It is an open invitation to showcase India's potential to rest of the world in terms of large demographic market and workforce potential available in India. The government of India has initiated various program to give imputes to manufacturing sector like Skill India, Stand up India, Start-up India, digital India. Clearing of goods and services tax (GST) will from the parliament is significant step to improve India's rank in Ease of doing a business index of World Bank. The International business environment is also changing very rapidly after United States presidential election. This paper will evaluate different trend and challenges in the implementation of Make in India nationally and internationally.

Aqueel ahmed

QUEST JOURNALS

India is one of the world's fastest growing economies, the tenth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). India needs to identify the steps being taken to give more financial powers to states, increased investment on infrastructure, emphasis on manufacturing which enables to open the door for investment. This Make in India campaign guides the foreign investors, prompt response, assistance to foreign investors and provide relevant information and proactive approach. This paper covers overview of the Make in India campaign, sectors covered, Initiatives taken by companies, growth cycles, challenges, opportunities and foreign investment in Indian manufacturing. The present study is based on secondary data. The data has been extracted from the various sources like research articles, publications from Ministry of Commerce, Government of India, various bulletins of RBI and authenticated websites. The study found that, Make in India will bring a drastic change in the fields like automobiles, aviation, biotechnology, defense, media, thermal power, oil, gas and manufacturing sectors. Thus, we can conclude that, despite the fact that " Make in India " though came at a right time, its execution remains a big challenge.

goutam goutam

Manufacturing sector is the backbone of any economy. It fuels growth, productivity, employment, and strengthens the agricultural sector and the service sector. With, the gradual slowdown of the world economy and slowing down of consumption demand, it is pertinent to strengthen the country's manufacturing export growth by overcoming the bottlenecks of high cost of capital, lack of economies of scale, inflexible labour laws, inadequate infrastructure, lack of branding, trade barriers etc. Through this paper, I attempt to identify the problems faced by the manufacturing sector in the first part of the paper. In the second part of the paper I critically examine the newly launched Make in India initiative and analyse its strength, weakness, opportunity and threat. And try to find out whether the efforts of the government to make manufacturing a key engine for India's economic growth are giving fruitful results.

JMRA Publication

Every 5 Years each government launches an initiative of their own to benefit the economy. In 2014, the Make in India was launched by Prime Minister-Narendra Modi, a swadeshi movement that encouraged Indian companies to manufacture and increased their investment. The movement was focused on 25 different sectors excluding defence industry, space industry and media of India. Due to the initiative India stands at 77 th rank among 190 countries in ease of doing business index. Our research aims to test the impact of Make in India on 3 such industries (MAM) and run regression testing on the GDP to establish the facts.

Journal ijmr.net.in(UGC Approved)

attractive manufacturing hub. It aims to pull out investors from different countries and make them to manufacture in India. The vision behind this campaign is to put the country on the global manufacturing map. It also desires to facilitate the inflow of new technology and capital, while creating millions of jobs. Make in India is an ambitious project, but there is a need to bring some changes in existing policies to make the India the powerhouse of manufacturing sector in the world. Make in India is a good opportunity for all Indians. It will generate crores of direct and indirect job opportunities. On this back ground, the researcher feels, it is necessary to study and understand the different opportunities and challenges in achieving the objectives of this campaign. The data used in this paper is secondary in nature. Through the statistical data and gap between demand and supply, we can understand the opportunities for the manufacturing sector in India. If this campaign got success, India can overcome the problems of unemployment, brain drain and it could get success in using local talent for the development of local economy, creating Brand India etc. So the objectives for the study are: to understand the benefits of the campaign, to study the opportunities and challenges before ‘Make in India Campaign, to study about the start up of Make in India campaign and to study about the urgent steps to be taken to support the campaign.

Rohit Kumar

Manufacturing is the key for growth and employment in any economy. The growth in manufacturing leads to development and growth in other sectors too. But the situation of manufacturing sector in India is not promising when compared to other developing economies. ‘Make in India’ initiative launched by the recent government has been successful in creating the optimism in the market. So, an attempt has been made here to know the important policies under this initiative and its effects for future.

IAEME Publication

Make-in-India is an initiative of Indian govt on 25 th September 2014, by addressing a mass audience including both national and international entrepreneurs at new Delhi This is an international strategy conceptualized by pm of India to attract the investment from business all over the world and transforming India in to a global manufacturing hub. For promoting this campaign he web portal, logo and booklet are used for detailing 25 priority sectors of Indian economy. The objective behind the initiative is to focus on job creation, skill development and innovation and to prevent India's manufacturing sector to global value chain by encouraging public private partnership joint venture FDI inflows and advancing case of doing business. This scheme focuses on increasing the economic growth and pull back the economic recession

Journal of Intellectual Studies & Theories

Dr. Alam Ahmad

The phrase-Make in India has been accepted with much fanfare. It is gaining an extremely wide and deep mind and literature positioning as if the country had been revealed upon a magical staff which will change India's production capabilities in no time. As part of the economic reform campaign, the plank-Make in India-pledges to encourage multinational companies and Indian companies as well to manufacture their products in India, focus on job creation and skill development, increase GDP growth and tax proceeds, attract capital and technological investment in India and many more. The paper attempts to analyse whether the campaign will succeed in convincing the foreign players of business as well as the domestic business tycoons who have resorted to conduct business operations outside to set up manufacturing units in India and exploit local minds and resources in the face of India's low positions in terms of ease of doing business. The success of-phrase‖ assumes further significance in light of the worsening religious harmony and the country marching ahead on the path of Kakistocracy.

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‘Make in India’: The Components of a Manufacturing Strategy for India

• Research Note
• Published: 30 January 2020
• Volume 63 , pages 161–176, ( 2020 )

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• Santosh Mehrotra 1  

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The share of manufacturing in India’s GDP was only 16% in 1991 and has remained stagnant at that level until 2018. Employment in manufacturing has also remained stagnant at under 12.8% of the workforce. One reason is that India has not had a coherent industrial policy in place since 1991. Meanwhile, some 100 countries in the world have adopted industrial policies, especially since the global economic crisis of 2008. The paper begins by spelling out the reasons why India needs an industrial strategy. It goes on to spell out eight elements of what would constitute a manufacturing strategy for India, which would address the concerns of large corporates and small and medium enterprises, as well as micro-enterprises. We would argue that such a strategy will lay the foundations for an inclusive growth strategy for India, which will also create growing jobs for an increasing labour force.

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This fact is especially notable for China, given that it was a much later addition to the ‘flying geese’ model of East Asian industrial growth, in which Japan was the leader, Korea and Taiwan were in the second tier, with Malaysia, Singapore, Hong Kong all following. China joins the ‘flying geese’ only after the mid-1990s.

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Mehrotra, S. ‘Make in India’: The Components of a Manufacturing Strategy for India. Ind. J. Labour Econ. 63 , 161–176 (2020). https://doi.org/10.1007/s41027-019-00201-9

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The “Make in India” policy: “A Comprehensive Evaluation of Outcomes and Roadblocks”

Priya, Anjali verma, Jyoti Yadav

Abstract:  The “Make in India” initiative, introduce by Indian government, stands out as a pivotal and game changing policy endeavour aims to attract the FDI in India by boosting the domestic manufacturing sector. This study focuses on the multifaceted aspects of this initiative by focusing on the goals, impact of FDI inflows and challenges and obstacles faced by foreign investors. To achieve the objectives, historical data has been collected on FDI inflows into India, spanning from the period of before the introduction of Make in India initiative and the after period of its implementation. Paired sample T-test has been applied o compare the pre and post FDI inflows of launching “Make in India initiative”. Results of the study provides that substantial difference occurs in the mean FDI inflows pre and post launching of this “Make in India” initiative at 5% level of significance. FDI inflows rise up on an average after the launching of this initiative by the government of India. Through the comprehensive and indepth analysis of these objectives, the study contributes to the better understanding of “Make in India” initiative impact on attraction of FDI and major challenges that needs to be address to enhance the effectiveness of this initiative in promoting manufacturing as well as the economic growth of the nation.

Keywords: - Make in India, Economic Growth, FDI, Manufacturing sector and foreign investors

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Priya, Anjali verma, Jyoti Yadav " The “Make in India” policy: “A Comprehensive Evaluation of Outcomes and Roadblocks” ", IARJSET International Advanced Research Journal in Science, Engineering and Technology, vol. 10, no. 10, pp. 69-73, 2023. Crossref https://doi.org/10.17148/IARJSET.2023.101010

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Make In India

Case study; make in india, make in india, theme: services.

Theme: Manufacturing

Launched: December 2014

Stakeholder: Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India; Indian manufacturers, global investors, consumers

A strong manufacturing sector is critical for an economy like India, especially considering the huge employable workforce in the country and the need for self-sufficiency in a number of sectors to bring down the trade deficit. Manufacturing is urgently needed to provide livelihood opportunities to a huge chunk of the population outside of agriculture. The manufacturing sector supplies quality products across the supply chain, thereby fueling the growth and productivity of other sectors in the process.

Shri Narendra Modi, Hon'ble Prime Minister of India, launched the visionary Make in India programme in September 2014. The programme is aimed at transforming India into a global hub for manufacturing, research & innovation and an integral part of the global supply chain. The programme aimed at building confidence in India's strengths and potential as a manufacturing hub across internal and external stakeholders. It has led to a major rehaul of processes and policies to enhance ease of doing business in India. Indeed, this is the single largest manufacturing initiative by any country in the recent past.

Some of the initiatives undertaken under Make in India are as follows: .

• Twenty five sectors have been selected under Make in India; a framework was developed to share a large amount of technical information on these sectors. Domestic and international audiences are constantly updated with latest information on opportunities, reform measures, etc.
• FDI has been liberalised in some key sectors including Defence Manufacturing, Food Processing, Telecommunications, Agriculture, Pharmaceuticals, Civil Aviation, Space, Private Security Agencies, Railways, Insurance and Pensions and Medical Devices.
• Several reforms undertaken to enhance ease of doing business and enhance FDI
• Industrial corridors and smart cities are being built at a fast pace.
• Intellectual Property Rights (IPRs) registrations are being accelerated and measures are being taken to cater to the training needs of the skilled workforce.

The manufacturing sector is expected to reach US$ 1 trillion by 2025 and contribute about 25% to India's GDP. Under the Make in India programme, indigenous manufacturing is expected to increase by 12-14% per annum over the medium term. As per the World Bank, manufacturing contributed about 16% to the country's GDP in 2016. This is on the higher side when compared with the global average of about 15% in 2015.

Manufacturing is expected to create 100 million additional jobs by 2025, considering how India is now one of the most attractive destinations for investments in this sector. Most leading companies including those of defence equipment, mobile phones and automobile brands have established or are looking to set up their manufacturing base in the country, which will have a positive impact on job creation.

Since its launch, Make in India has played a major role when it comes to improving ease of doing business in India. The various initiatives being undertaken have made a hugely positive impact on investor confidence. Some of the major achievements are as follows:

• Total FDI between April 2014 and March 2017 amounted to around 33% of cumulative FDI into India since April 2000. In 2015-16, FDI inflow crossed US$ 50 billion for the first time in any fiscal, and further in 2016-17, FDI reached a record figure of US$ 60 billion. Cumulative FDI inflows from April 2000 to March 2018 had reached US$ 546.45 billion (including equity inflows, invested earnings and other capital). In 2017, India retained its position as the world's most attractive destination for greenfield FDI.
• Measures to improve business confidence have led to progressive improvements in India's rank in the World Bank's ease of doing business rankings from 142 in 2014 to 100 in 2017.
• Five industrial corridors and 21 new nodal industrial cities are being developed to boost industrial growth.
• The Insolvency and Bankruptcy Code 2016 has consolidated all rules and laws pertaining to insolvency into one legislation, thereby bringing India's bankruptcy code in step with global best practices.
• The Government of India introduced a holistic National Intellectual Property Rights (IPR) policy in May 2016 in order to spur creativity and innovation in the Indian economy. During April - October 2017, 45,449 patents and 15,627 copyrights were filed in India, out of which 9,847 patents and 3,541 copyrights were granted.

References:

• http://dipp.nic.in/sites/default/files/FDI_FactSheet_29June2018.pdf
• http://www.makeinindia.com/home
• http://pib.nic.in/newsite/PrintRelease.aspx?relid=174892
• http://mofapp.nic.in:8080/economicsurvey/pdf/120-150_Chapter_08_Economic_Survey_2017-18.pdf

Last updated: September, 2018

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• FDI in Make in India: Transforming the Manufacturing Landscape

• Team India Blogs

As India strives to become a $35 Tn economy, the role of the manufacturing sector is pivotal in driving the nation forward. A robust manufacturing industry is essential for boosting economic growth by contributing to the GDP, strengthening infrastructure, increasing imports, and creating job opportunities.  

From fiscal year 2006 to 2012, India's manufacturing sector GDP grew by an average of 9.5% per year. However, over the following six years, growth slowed to 7.4% because of challenges like project delays due to cumbersome regulations and red tape, ill-targeted subsidies, low manufacturing base, low-value addition in manufacturing, and the presence of a large informal sector.

To revitalise the manufacturing sector, the Make in India initiative was launched in September 2014 to fostering foster innovation, and position India as a global manufacturing hub by attracting domestic and foreign investment, building best-in-class manufacturing infrastructure, enhancing skill development, protecting intellectual property, and streamlining regulatory processes to create a conducive environment for businesses to thrive.

Foreign Direct Investment Over the Years 

Due to the sustained efforts of the government, during 2014-2023, Foreign Direct Investment equity inflow in the manufacturing sector increased by 55% to reach $148.97 Bn compared to $96 Bn in the previous nine years (2005-2014).

This achievement is due to the various policy initiatives taken by the government over the years. Under the  existing FDI policy, nearly all sectors allow for 100% FDI, except for certain prohibited sectors. The defence industry allows 74% FDI under automatic route and 100% under the government route. For the broadcasting sector, FDI limits vary, differing between print and digital media.  While the automatic route requires no approval from the Government of India for either non-resident or Indian companies, the government route necessitates prior approval from the Government of India before investment can proceed.

The government introduced several other measures, such as the Goods and Services Tax (GST) , to streamline indirect taxation. Before GST, manufacturers faced challenges with multiple tax filings and assessments by different tax authorities. The introduction of GST streamlined indirect taxation and automated tax compliances, easing the burden for businesses. Additionally, reductions in corporate taxes, along with simplified construction permits and and the abolition of archaic laws were implemented to improve the ease of doing business. Coupled with FDI policy reforms aimed at attracting foreign capital, these measures collectively aimed to bolster the business environment and stimulate economic growth.

At the global level as well, India also collaborated with other countries. To further propel innovation in manufacturing sectors, in 2015, India and Japan announced a $12 Bn ' Japan-India Make-in-India Special Finance Facility ’ fund managed by the Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC). The fund “aims to promote direct investment of Japanese companies and trade from Japan to India, to support their business activities with counterparts in India, including the development of necessary infrastructure, and to help materialise Make-in-India policy of the Government of India.” Between 2000 and June 2023, Japan invested about $39.94 Bn in India, ranking fifth in FDI sources. Japanese investments mainly went into sectors like automobiles, electrical equipment, telecommunications, chemicals, finance (insurance), and pharmaceuticals.

Similarly, ‘ Make in India Mittelstand (MIIM) ,’ a collaboration between India and Germany, focuses on driving innovation and enhancing economic cooperation by encouraging small and medium-sized German companies to invest and manufacture in India. Since its inception in September 2015, as of August 2021, the MIIM program has supported more than 151 German Mittelstand companies, resulting in a total declared investment exceeding €1.4 Bn. A majority of these investments came in the automotive, renewables, construction, consumer goods, electronics and electricals, chemical, waste/ water management sectors.

These liberalised policies, coupled with efforts to improve the ease of doing business, have positioned India as an attractive destination for foreign investors.  

India's progress has been recognised internationally, with the World Bank's 2019 Ease of Doing Business report acknowledging a significant jump to a rank of 63 among 190 countries.

Current Landscape 

The Government has also introduced the Production Linked Incentive (PLI) Scheme, which has significantly boosted production, employment, economic growth, and exports in India. Under this scheme, companies are incentivise to promote domestic production, thereby enhancing India’s manufacturing competitiveness.  PLI scheme covers 14 key sectors with an incentive outlay of about $26 Bn. Sectors like Drugs and Pharmaceuticals (+46%), Food Processing Industries (+26%), and Medical Appliances (+91%) witnessed increased FDI inflows. The PLI scheme has prompted major smartphone companies like Foxconn, Wistron and Pegatron to shift suppliers to India, resulting in the manufacture of top-end phones in the country.

In line with the Make in India initiative, several Indian states have also launched their localised initiatives like Tamil Nadu Global Investors Meet, Make in Odisha, Vibrant Gujarat, Happening Haryana, and Magnetic Maharashtra.  

According to the parliamentary data, from October 2019 to December 2023, the total foreign investments in the manufacturing sector, as reported by the States through FDI equity inflow, were $20.8 Bn. The top five states receiving the maximum investment are Maharashtra (29.6%), Karnataka (22.6%), Gujarat (16.3%), Delhi (13.5%), and Tamil Nadu (4.7%).

The Make in India initiative has been instrumental in transforming India's manufacturing landscape and attracting significant investments to the country through a series of reforms geared towards improving the ease of doing business, liberalising FDI policy and promoting domestic manufacturing, The COVID-19 pandemic also presented an opportunity for India to transform its economic landscape by leveraging the disruption caused by the crisis into a growth opportunity. As of 2023, the manufacturing sector accounted for 17% of the GDP and provided employment to more than 27.3 Mn individuals in India. The government plans to increase manufacturing's share to 25% of the economy by 2025.

India has emerged as an attractive destination for foreign investors. The success of the Make in India policy is evident from the substantial increase in FDI equity inflows in the manufacturing sector and increased production of high-value goods.

India's continued focus on innovation, technology adoption, and skill development will be crucial for sustaining the momentum in the manufacturing sector. Initiatives like the Production-Linked Incentive (PLI) scheme and ongoing reforms to improve infrastructure and regulatory environment will play a key role in enhancing India's competitiveness on the global stage.   

• https://www.mckinsey.com/industries/industrials-and-electronics/our-insights/a-new-growth-formula-for-manufacturing-in-india
• https://dea.gov.in/sites/default/files/The%20Indian%20Economy-A%20Review_Jan%202024.pdf
• https://sansad.in/getFile/loksabhaquestions/annex/1714/AS258.pdf?source=pqals#:~:text=Foreign%20Direct%20Investment%20(FDI)%20equity,financial%20years%20i.e.%202005%2D14.
• https://pib.gov.in/PressReleasePage.aspx?PRID=2004475#:~:text=Foreign%20Direct%20Investment%20(FDI)%20limit,in%20access%20to%20modern%20technology.
• https://www.meity.gov.in/writereaddata/files/FDI-PolicyCircular-2020-29October2020_0.pdf
• https://www.makeinindia.com/policy/foreign-direct-investment#:~:text=FDI%20under%20sectors%20is%20permitted,is%20required%20prior%20to%20investment
• https://www.mea.gov.in/bilateral-documents.htm?dtl/26176/Joint_Statement_on_India_and_Japan_Vision_2025_Special_Strategic_and_Global_Partnership_Working_Together_for_Peace_and_Prosperity_of_theIndoPacific
• https://www.mea.gov.in/Portal/ForeignRelation/Japan_-_Bilateral_Brief_MEA_Website_Oct_2023.pdf
• https://indianembassyberlin.gov.in/pdf/menu/miim/MIIM-Programme-Highlights-August-2021.pdf
• https://archive.doingbusiness.org/content/dam/doingBusiness/pdf/db2020/Doing-Business-2020_rankings.pdf
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1932051
• https://sansad.in/getFile/loksabhaquestions/annex/1714/AS258.pdf?source=pqals
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1962138

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India likely to export almost 18 million tonnes of rice in 2024-25: USDA

Supplies increase year to year on record production at 527.6 million tons that more than offsets lower beginning stocks.

Photo: Bloomberg

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Slow purchases in some states drag rice procurement for central pool, centre keeping all options open to curb rice prices: food secretary, after curbs, non-basmati rice exports fell sharper than basmati rice, uttar pradesh govt transfers nearly rs 11,200 crore to paddy farmers, need for collective effort to improve dsr paddy cultivation: white paper, uttar pradesh govt plans to promote agri startups, introduce ai in farming, every rupee invested in agri research yields rs 13.85, says study, madhya pradesh farmers struggle to make the most of soaring wheat prices, govt lifts ban on onion exports; imposes min export price of $550 per tonne, centre imposes 40% duty on export of onions with effect from may 4.

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First Published: May 12 2024 | 11:38 PM IST

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