PM Modi’s ‘Make in India’- A Global Initiative to Boost Indian Economy

On 24th September, 2014 India creates history by successfully launching the interplanetary mission to Mars. Right after that, Prime Minister Narender Modi had launched the Make in India campaign in 25, September 2014 again displaying the nation’s self-reliance in spite of critical & hostile statuses.

Make in India theme was displayed at the 35th edition of the India International Trade Fair (IITF) held at Pragati Maidan in November 2015.

PM Narendra Modi coined the “Zero Defect Zero Effect” Slogan

The slogan stresses on the requisite of production of products with no defects.  And the term “Zero Effect” here implies that the production mechanism must have no adverse effect in ecology & environment.

Launch of the ‘Make in India’ campaign:

With a vision to build technology-savvy digital India, the campaign was launched on the birth date of eminent patriot & philosopher, Pandit Deen Dayal Upadhyaya. Leading entrepreneurs and the CEOs of about 3000 companies from across 30 countries were present at the launch ceremony held at Vigyan Bhavan, New Delhi.  Along With launch of the campaign, the Prime Minister also unveiled the Make in website and logo.

Narendra_Modi_launches_Make_in_India

The campaign aims to grow the contribution of the manufacturing sector to 25 %, currently which is only 15% of the national GDP. Prime Minister urged national as well as foreign investors to endow the country with foreign direct investments. PM aims to see India as an manufacturing hub with great business opportunities. He said FDI is not merely “Foreign Direct Investment” but it’s “”First Develop India”.   By launching the campaign, opportunities for global business investors are being opened.  Thus it spurs the overall development by increasing employment and purchasing power of the common man.

Focused Sectors under the ‘Make in India’ campaign:

The “Make in India” campaign focuses on job creation and skill enhancement in identified 25 priority sectors such as: Automobiles, Aviation¸ Biotechnology, Construction, Electronic Systems, Pharmaceuticals, Space, IT and BPM etc. Increased job opportunities would help in poverty alleviation for inclusive expansion of the nation’s economy.

Challenges to be overcome to run the campaign successfully:

India is jam-packed with plenty of natural resources & skilled labour.  Ludhiana, Hyderabad, Bhubaneshwar, Gurgaon, and Ahmedabad are among the top cities in India which are open great business opportunities. In spite of the easy availability of assets, India still ranks low on the “ease of doing business index” this is because of the lack of clarity on policy issues & Labour laws.  The government’s bureaucratic approach, corruption, vague policies, hostile infrastructure, depraved transport networks & logistics facilities are one of the prominent snags while running the campaign successfully.

Though, the government is endeavouring for labour reforms and policy reforms. Online procedure has been started for licenses application and the licenses validity is also increased. Foreign equity caps & other norms in various sectors were also unruffled.

Criticism levelled against the “Make in India” campaign:

Make in India campaign had engrossed INR 2000 crore worth investment proposals till Oct. Though, a major proportion of people assess it of no worthy outcome they state that the incumbent government does not walk its talk, It’s just a paper work with no evident development.

Existent effects of the “Make in India” campaign on global business:

The foreign direct investment in railways infrastructure was allowed to be 100% & for defence sector it was increased to 49% which was only 26% FDI before August 2014. This is to lower down the import of military products in India.

  • In January 2015, Spice Group signed a MoU with and the Government of Uttar Pradesh for opening a mobile phone manufacturing unit in Uttar Pradesh.
  • In January 2015, Samsung South Asia projected to establish 10 “MSME-Samsung Technical Schools” & Samsung Z1 manufacturing plant in India.
  • In February 2015, Hitachi shown up its interest to set up an auto-component plant in Chennai.
  • In February 2015, Huawei established research and development (R&D) campus in India with an investment of US$170 million. Marine Products Export Development Authority also shown its interest in supplying shrimp eggs in India.
  • In August 2015, Xiaomi introduced the Xiaomi Redmi 2 Prime assembly unit.
  • In June 2015, LH Aviation signed an memorandum of understanding with OIS Advanced Technologies to set up a drone manufacturing plant in
  • On 8 August 2015, General Motors proposed to establish automobiles manufacturing units in India.
  • On 8 August 2015, Foxconn proposed to set up an R & D and hi-tech semiconductor manufacturing unit in Maharashtra.
  • On 18 August 2015, Lenovo announced to establish Motorola smartphones manufacturing plant in Chennai.
  • On 16 October 2015, Boeing announced to set up a fighter planes manufacturing, Apache or Chinook defence helicopter assembly unit in India. It has also proposed to set up an F/A-18 Super Hornet manufacturing plant in India.
  • In November 2015, Taiwan’s Wistron Corp announced to begin electronics/mobile device manufacturing unit in Noida.
  • On 30 November 2015, the Ministry of Railways signed agreements with Alstom and GE Transport to establish locomotive manufacturing factories in Bihar.
  • In December 2015, Qualcomm announced to set up an Innovation Lab in Bengaluru to provide technical and engineering support to the 10 selected companies in India.
  • In December 2015, Micromax announced to set up three new manufacturing units in Rajasthan, Telangana and Andhra Pradesh.
  • In December 2015, Japanese Prime Minister Shinzo announced to initiate a project named the “Japan-India Make-in-India Special Finance Facility”.
  • In late December, China’s Vivo began manufacturing smartphones at a plant in Greater Noida.
  • In December 2015 Prime Minister Narendra Modi’s signed the first defence deal under the “make in India” with Russia to build the Kamov Ka-226 multi-role helicopter in India.
  • The Hindustan Aeronautics Limited proposed Russia’s Irkut Corp to Corp to vend technology of 332 components line replacement units (LRUs) of the Sukhoi Su-30MKI fighter aircraft & Fighting Infantry Combat Vehicle (FICV) to India.
  • In February 2016, US’s Lockheed Martin shown its intent to manufacture the F-16 Block-70 aircraft with a local partner in India.
  • In May 2017, the Union Cabinet approved the construction of 10 indigenously-built Pressurised Heavy Water Reactors (PHWRs) in contract with Indian companies.

With advance in the campaign, Foreign direct investment in India has been gradually increasing surpassing the US & China. The campaign aims to turn India as a manufacturing hub & achieve net zero imports of electronics by 2020, it is a far sighted mission to boost up India’s economy.

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