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Make in India was launched in September 2014 by the GoI to encourage multinational as well as domestic companies to manufacture their products in India. The initiative is set to boost entrepreneurship, not only in manufacturing but in relevant infrastructure and service sectors as well. Major features of the initiative56 are as given below:
Vision: attracting both capital and technological investment in India enabling it to become the top global FDI, surpassing even China and the United States.
Objective: To focus on job creation and skill enhancement in 25 key sectors of the economy, including automobiles, aviation, biotechnology, defence manufacturing, electrical machinery, food processing, oil & gas, and pharmaceuticals, among others.
Logo: is inspired from Ashoka Chakra – is a striding lion made of cogs, symbolising manufacturing, strength and national pride.
The initiative also aims at imposing high quality standards and the dimensions of sustainability. Key policies to be followed are: ease of doing business, getting away with archaic laws, 100 Smart Cities, disinvestment of the PSUs, skills and jobs for the youth, etc. Major challenges to the initiatives include – creating a healthy business environment, removal of unfavourable factors, more focus on Indian’s MSMEs, lack of world class research and development (R&D), and comparisons with China’s ‘Made in China’ campaign.
Some experts have also highlighted few concerns related to the Make in India campaign. It will be advisable to take care of the concerns:
(i) allegations of siphoning of funds,
(ii) higher pricing,
(iii) more profits to MNCs for setting up plants in India,
(iv) land-grabbing, and
(v) re-entry of black money.
The initiative is based on four pillars – new processes; new infrastructure; new sectors; and new mindset. The major steps57 taken by the government in this regard are as summed-up below:
(i) An interactive portal for dissemination of information and interaction with investors has been created with the objective of generating awareness about the investment opportunities and prospects of the country, to promote India as a preferred investment destination in markets overseas and to increase Indian share of global FDI.
(ii) Invest India set up as the national investment promotion and facilitation
agency.
(iii) With the objective of promoting investment in the country, a full- fledged Investment Facilitation Cell has been set-up under the Make in India initiative, primarily to support all investment queries as well as to handhold and liaise with various agencies on behalf of potential investors.
(iv) As envisaged by the National Manufacturing Policy 2011, Make in India seeks to enable the sector to contribute 25 per cent to the GDP and create 100 million additional jobs by 2022.
(v) A number of steps to enhance the skills of workers/the unemployed in India in order to improve their employability.
(vi) In order to tap the creative potential and boost entrepreneurship in India, the Start-up India and Stand-up India campaign has been announced.
(vii) An innovation promotion platform called AIM (Atal Innovation Mission) and a techno-financial, incubation and facilitation programme called SETU (Self-Employment and Talent Utilization) are being implemented to encourage innovation and start-ups in India.
(viii) For supporting the financial needs of the small and medium enterprise sector and promote start-ups and entrepreneurship, various steps taken through Make in India –
(a) The India Aspiration Fund has also been set up under the SIDBI for
venture capital financing to the MSME sector.
(b) SIDBI Make in India Loan for Small Enterprises (SMILE) launched to offer quasi-equity and term-based short-term loans to Indian SMEs on liberal terms.
(c) A Micro Units Development Refinance Agency (MUDRA) Bank set up to provide development and refinance to commercial banks/NBFCs/cooperative banks for loans given to micro-units. MUDRA follow a ‘credit-plus approach’ by also providing several other services such as – financial literacy and addressing skill gaps, information gaps, etc.