In 2013, the bubble of much sought after emerging markets had burst, and India’s growth rate had fallen to its lowest level in a decade. The trust of BRICS Nations (Brazil, Russia, India, China and South Africa) had faded away from India and was tagged as one of the so-called ‘Fragile Five’. Make in India project was launched by Prime Minister to rejuvenate the economy of India.
Make in India, is a kind of Swadeshi movement that was launched on 25 September 2014 by the Indian Government to encourage companies to manufacture their products in India. Make in India project has identified 25 sectors that include automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing and many more. FDI has been opened up in Defence Production, Construction, and Railway infrastructure in a big way.
Logo of Make in India Campaign
Sectors in Focus
In order to invite foreign manufacturers in the country, the Government of India has allowed 100% Foreign Direct Investment (F.D.I.) in key sectors of the economy. Let’s have a look at those sectors.
|9.||Electronic system design and manufacturing|
|11.||IT and BPM|
|13.||Media and entertainment|
|15.||Oil and gas|
|20.||Roads and highways|
|24.||Tourism & Hospitality|
Why Companies were not manufacturing in India?
Make in India campaign’s biggest rival is Make in China ideal that has gained momentum over the past several decades. China is the major rival when we talk about the outsourcing, manufacturing, and services business. India’s poor infrastructure scenario and defunct logistics facilities make it tough for the country to achieve the elite status of a manufacturing hub. The government has promised that it will remove all these hurdles and make the nation an ideal destination for investors to set up industries.
A Boost To Start-Ups
In the last six years, the government has significantly improved the business climate in the country. Make in India project has become a platform for national development, the campaign has made its presence felt across the globe. The ‘zero defect zero effect’ phrase that came with Make in India campaign has shown many positive impacts on the Micro, Small and Medium Enterprises (MSMEs) of India. As a result, several companies are now manufacturing goods with ‘zero defects’ and ensuring that it has ‘zero effect’ on the environment. Between September 2014 to February 2016 India received investment commitments worth US$250 billion and investment inquiries worth US$23 billion.
To erode unemployment from India free and bringing development this policy is the urgent need. We can reduce poverty to a great level by solving the unemployment issue for youths. The country’s economy will surely achieve great heights after the success of Make in India campaign. This, in turn, might solve several social issues in the country.