MAKE IN INDIA
India gained position of being the top destination in the world for FDIs in 2015, surpassing US and China with $60.1 billion FDI.
The Make in India movement has sprung up from Mahatma Gandhi's Swadeshi Movement, encouraging companies in India to make their own products and Indians to use the products made by Indian companies. For the purpose of promoting these companies, the Government of India, under this scheme, made huge investments into manufacturing units.
The Make in India Program was launched on 25 September 2014. After it was launched, the Government of India committed to spending INR 16.40 lakh crore ($230 bn) for the cause while making an investment worth INR 1.5 lakh crore ($21 bn) between September 2014 and February 2016.
India gained the position of being the top destination in the world for FDIs in 2015, surpassing US and China with $60.1 billion FDI. In the financial year 2016-2017 again, India received $60 billion FDI. In accordance with the spirit of the Make in India program, the other states launched such initiatives, namely: Make in Odisha, Tamil Nadu Global Investors Meet, Vibrant Gujarat, Happening Haryana, and Magnetic Maharashtra.
Three key objectives of the Make in India campaign are as follows:
- To raise the growth rate of the manufacturing sector to 12-14 per cent each year in order to boost the sector 's share of the GDP;
- To generate 100 million new manufacturing workers in the country by 2022; and
- To ensure that the contribution of the manufacturing sector to GDP is raised to 25 per cent by 2022 (later updated to 2025).
The Initiative listed the Industries it wanted to boost through the campaign in its official video for the promotional campaign: From Automobiles to Agro-products, from Hardware to Software, from Satellites to Submarines, from Televisions to Telecom, from Pharma to Biotech, from Paper to Power Plants, from Roads to Bridges, and from Houses to Smart Cities. Whatever you want to make: Make in India.
The Areas that have especially seen a boosted growth in manufacturing their own products are worth mentioning:
Kia announced the investment of $1.1 billion to build a car-manufacturing plant in Anantapur, Andhra Pradesh, the BK Modi Group set up one in Moradabad, Uttar Pradesh in a tie-up with BYD. SAIC Motor built a manufacturing plant in Halol, Gujarat and PSA (European automobile group) in collaboration with CK Birla Group decided to build a manufacturing plant in Tamil Nadu. Hitachi announced in 2016 that it would establish an auto component plant in Chennai by 2016.
Aviation saw Thurst Aircraft Pvt Ltd sign a MOU with the Government of Maharashtra under Magnetic Maharashtra Campaign to build an aeroplane building facility near Palghar district.
Defence manufacturing in partnership with Russia started by signing agreements for the construction of naval frigates, KA-226T twin-engine utility helicopters (joint venture (JV) to make 60 in Russia and 140 in India), Brahmos cruise missile (JV with 50.5% India and 49.5% Russia).
Lockheed Martin's F-16 came to India in 2016-17, Boeing set up a factory to assemble fighter planes.
The target of the Make in India campaign is to make the net imports zero as it has the capacity to become the largest electronic manufacturing hub. 95% of the smartphones now sold in India are Indian-made, as compared to 24.8% in 2015. Companies like Foxconn, Huawei, Lenovo, Micromax, Qualcomm, Samsung, Spice, Vivo, Wistro, Xiaomi, HMD Global, have begun manufacturing in India.
India is one of the world's major producers of fruit, vegetables, rice and milk, with trade surpluses in food exports. Pitha of Odisha, Gushtaba of Kashmir, Chicken Curry of Punjab, Khakhra and Khandvi of Gujarat, Bamboo Steam Fish, Vada and Medhu Vada of Karnataka, Khaja and Inarsa of Bihar, Kebab of Uttar Pradesh and Puranpoli of Maharashtra have been selected as typical ethnic food to be marketed in the organized effort.
Alstom / GE Transportation, the French and American manufacturers of rolling stock have reported 400 billion (US$ 5.6 billion) of locomotive factories in Madhepura and Marhaura in Bihar. Hyperloop One, which is a U.S. corporation involved in the commercialization of Hyperloop, has reached a contract agreement with the government. the construction of the route from Mumbai to Pune is to begin.
At the Uttar Pradesh Developers Conference in February 2018. Avaada Power and Refresh Power have reported ? 10,000 crore and ?8,000 crore worth of solar plants respectively. During Magnetic Maharashtra: Convergence 2018, ReNew Control signed an MOU with the government of Maharashtra and reported $2.17 billion in solar ventures. In August 2016, NLC India declared that it will set up a 500MW solar power project in Odisha at the cost of over 3,000 crores of rupees.
The textile industry prospers as India's second-largest job-creating market. It offers direct jobs to more than 35 million citizens of the country. India is the world's largest manufacturer of jute and holds 63% of the global garment and apparel industry. India is the second largest producer of textiles in the world and the second largest producer of silk and cotton. In the textile market, 100 % FDI is allowed. Brands like Rieter, Trutzschler, Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks & Spencer, Zara, Promod, Benetton, and Levi's have their manufacturing units in India.
Benefits of the Campaign
- The campaign was launched with the aim to boost the various sectors that impact the economy of the country.
- The more manufacturing units we have in India, the more the products we use will be Indian and the less the consumers will have to pay for these products.
- The campaign automatically battles social issues like unemployment, poverty, and economic decline.
- A self-dependent nation attracts investors from all parts of the globe.
- The rising talent and creative youth of the country get a platform to showcase their talents. It will also prevent brain drain as young people will find work opportunities in their own country.
To prove the benefits of the campaign, statistics are sufficient which say that in 2014, India was the eighth largest economy in the world, and in 2018, it became the fifth largest economy in the world. India ranked among the top hundred companies in the ‘ease of doing business’, and among the top forty in ‘global competitiveness’.
From the movement that gave India its independence from the British Raj, Swadeshi, the Make in India Campaign has given India “self-dependence”, or a “self-reliant” economy, complete in itself, and for which, the sky is the only limit.