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Make in India

From Wikipedia, the free encyclopedia
For other uses, seeMade in India (disambiguation).

Make in India
CountryIndia
Prime Minister(s)Narendra Modi
Key peopleMinistry of Commerce and Industry (India)
LaunchedSeptember 25, 2014;10 years ago(2014-09-25)
StatusActive
Websitemakeinindia
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Make in Indiais an initiative by theGovernment of Indiato create and encourage companies to develop,manufactureandassembleproducts inIndiaand incentivize dedicated investments into manufacturing.[1]The policy approach was to create a conducive environment forinvestments,develop a modern and efficient infrastructure, and open up new sectors for foreign capital.[2][3][4]

Make in India has been unsuccessful at achieving its stated targets. Under this programme, the share of manufacturing in GDP was projected to reach 25% by 2022. However, the GDP share of manufacturing has actually fallen from 16.7% in 2013-2014 to 15.9% in 2023-2024.[5][6][7][8]

History

[edit]

Announced in 2014, "Make in India" had three stated objectives:

  1. to increase the manufacturing sector's growth rate to 12-14% per annum;
  2. to create 100 million additional manufacturing jobs in the economy by 2022;
  3. to ensure that the manufacturing sector's contribution to GDP is increased to 25% by 2022 (later revised to 2025).[9]

After the launch, India gave investment commitments worth₹16.40 lakh crore(US$200 billion) and investment inquiries worth of₹1.5 lakh crore(US$18 billion) between September 2014 to February 2016.[10][11][12]As a result,Indiaemerged as the top destination globally in 2015 forforeign direct investment(FDI), surpassing theUnited StatesandChina,with US$60.1 billion FDI.[13] As per the current policy, 100% Foreign Direct Investment (FDI) is permitted in all 100 sectors, except for Space industry (74%), defence industry (49%) and Media of India (26%).[14][15]Japan and India had also announced aUS$12 billion'Japan-India Make-in-India Special Finance Facility "fund to push investment.[16]

In line with the Make in India, individual states too launched their own local initiatives, such as "Make in Odisha","Tamil Nadu Global Investors Meet","Vibrant Gujarat","Happening Haryana ", and"Magnetic Maharashtra".[17]Indiareceived US$60 billion FDI in FY 2016–17.[18]

TheWorld Bank's2019ease of doing business indexacknowledges India's jump of 23 positions against its rank of 100 in 2017 to be placed now at 63rd rank among 190 countries.[19]By the end of 2017, India had risen 42 places on the ease of doing business index, 32 places in the World Economic Forum'sGlobal Competitiveness Index,and 19 notches in theLogistics Performance Index.[18] The growth rate of manufacturing averaged 6.9% per annum between 2014–15 and 2019–20.[20]The share of manufacturing dropped from 16.3% ofGDPin 2014–15 to 14.3% in 2020–21,[20]and dropped further to 14.1% in 2023–24.[21]

Three capital acquisition proposals worth ₹4,276 crore were cleared for the government's Make-In-India scheme on January 10, 2023. Due to a lack of awareness of transparent legal protection and law enforcement, hesitated investors and slow progress are the main difficulties in building a business-friendly environment.[22]With some big companies finally tried to fulfill "make in India" decades after,[23]however, it did not achieve enough jobs as expected.[24][25]

The "Make In India" initiative

[edit]

Ease of doing business

[edit]

In 2019, India was ranked at 63rd place out of 190 countries in theWorld Bank'sease of doing business index,[26]up from 130th in 2016.[27]In February 2017, the government appointed theUnited Nations Development Programme(UNDP) and theNational Productivity Council"to sensitise actual users and get their feedback on various reform measures."[28]As a result, now there is competition among the states of India to improve their current ranking on the ease of doing business index based on the completion percentage scores on 98-point action plan for business reform under Make in India initiative.[29][30][31][32][33][34]CurrentlyAndhra Pradesh,Uttar Pradesh,Telangana,Madhya Pradesh,Jammu and KashmirandChhattisgarhare top six states (c. Oct 2020).[35]

Ongoing global campaign

[edit]

The campaign was designed byWieden+Kennedy,[36]with the launch of a web portal and release of brochures on the 25 sectors, after foreign equity caps, norms and procedures in various sectors were relaxed, including application of manufacturing application made available online and the validity of licenses was increased to three years.[37]

"Zero DefectZero Effect "slogan was coined byPrime Minister of India,Narendra Modi,to guide the Make in India initiative that produces products with no defects with no adverse environmental and ecological effects.[38][39]

"Make in India Week" multi-sectoral industrial event at theMMRDAfrom 13 February 2016 was attended by 2500+ international and 8000+ domestic, foreign government delegations from 68 countries and business teams from 72 countries and all Indian states also held expos. Event received over₹15.2 lakh crore(US$180 billion) worth of investment commitments and investment inquiries worth₹1.5 lakh crore(US$18 billion), whereMaharashtraled with₹8 lakh crore(US$96 billion) of investments.[10][11]Previously between September 2014 and November 2015, the government received₹1.20 lakh crore(US$14 billion) worth of proposals from companies interested in manufacturing electronics in India.[12]

Revision in Public Procurement Order & GFR

[edit]

On June 15, 2017,Ministry of Commerce and Industry (India),the nodal ministry revised the Indian public procurement order and general financial rule to incorporate preference to Make In India. Subsequently, all the nodal agencies published their own orders to extended the scope of Make In India in procurement related to their line of products.[40][41]

Sectors covered

[edit]
See also:Economy of India,Industrial corridor,andList of geographical indications in India

Make in India focuses on the following 25 sectors of the economy:

Automobiles

[edit]
See also:Automotive industry in India

General Motorsannounced an investment ofUS$1 billionto manufacture automobiles in Maharashtra.[42]

In April 2017,Kiaannounced that the company would invest over $1.1 billion to build a car manufacturing plant in Anantapur, Andhra Pradesh. The facility is the company's first manufacturing plant in India. Kia stated that it would hire 3,000 employees for the plant, and it would produce 300,000 cars annually. Construction of the plant began in mid-2017 and has been completed in March 2019. The first vehicles are scheduled to roll off production lines in mid-2019. Kia president Han-Woo Park announced that the first model produced at the plant would be an SUV(sport utility vehicle) specifically designed for the Indian market.[43][44]Park also added that Kia would invest over $2 billion and create 10,000 jobs in India by 2021.[45][46]

Automobile components

[edit]
See also:Automotive Component Manufacturers Association of India

Hitachiannounced an auto-component plant inChennaiby 2016 with an increase in their India employees count from 10,000 to 13,000.[47]

Aviation

[edit]
See also:Aviation in India,UDAN-RCS,andList of airports in India

Before the Make in India campaign had been put in motion, the first deal to have been done under the broaderAtmanirbhar Bharatcampaign was theFairchild-Dornier 228'smanufacturing by theHindustan Aeronautics Limited,byPushpindar Singh Chopra.[48]French drone manufacturerLH Aviationannounced a manufacturing plant in India to produce drones.[49]DuringMagnetic Maharashtra: Convergence 2018,Thurst Aircraft Pvt Ltd signed aMOUwith Govt. of Maharashtra to build an aeroplane manufacturing plant near Palghar district (roughly 140 km north of Mumbai) with an investment of ₹35,000 crore($5.2 billion).[50]

Biotechnology

[edit]
See also:Biotechnology in India

On 6 July 2024,Horiba's largest medical equipment andhematologyreagentproduction facility in India was officially opened inNagpur.The company plans to invest₹200crorein phases at the Nagpur plant, which will cater to more than 30,000 hospitals and diagnostic facilities. It will produce medical consumables (reagents),clinical chemistryequipment, and equipment for blood tests. It will act as a hub for exports to nearby nations, with a 50% localization objective initially, and a target of 80–90% localization of products in the future. With aspirations to eventually expand into the Materials & Semiconductor and Energy & Environment sectors, the factory will initially serve the Bio & Healthcare segment.[51]

Defence manufacturing

[edit]
See also:Defence industry of India,India and weapons of mass destruction,Guided missiles of India,andDefence Research and Development Organisation

As part of Prime Minister Narendra Modi'sNarendra ModiAtma Nirbhar Bharat Abhiyan (Self Reliant India Campaign), India's ministry of defence last month reserved 26 items that will only be procured from the local suppliers.[52]


India and Russia have deepened their Make in India defence manufacturing cooperation by signing agreements for the construction of navalfrigates,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).[53]A defence deal was signed duringPrime Minister Narendra Modi's visit to Russia in December 2015 which will see theKamov Ka-226multi-role helicopter being built in India, was widely seen as the first defence deal to be actually signed under the Make in India campaign.[54][55]In August 2015,Hindustan Aeronautics Limited(HAL) began talks with Russia's Irkut Corp to transfer technology of 332 components of the Sukhoi Su-30MKI fighter aircraft under the Make in India program. These components, also called line replacement units (LRUs) refer to both critical and non-critical components and fall into four major heads such as Radio and Radar; Electrical & Electronics System; Mechanical System and Instrument System.[56]

Lockheed Martinannounced in February 2016 its plans to manufactureF-16in India, although it did not announce any time frame.[57]In February 2017, Lockheed stated that it intended to manufacture the F-16 Block-70 aircraft with a local partner in India, if the Indian Air Force agreed to purchase the aircraft.[58]

Boeingannounced setting up a factory to assemble fighter planes, either theApacheorChinookdefence helicopter in India,[59]as well as the manufacture ofF/A-18 Super Hornet.[60]

Prime ministerNarendra Modilaunches Make in India.

In May 2018, theIndian Armyannounced a₹50,000 crore(US$6.0 billion) ammunition production project to be implemented in phases over a 10-year period. Under the project, 11 private firms will manufacture and supply ammunition for the Army's tanks, rockets, air defence system, artillery guns, infantry combat vehicles, grenade launchers, and other field weapons. The Army noted that the objectives of the program were to cut dependence on foreign imports and to establish an inventory of ammunition that would sufficient to fight a 30-day war.[61]

Electronic systems

[edit]
See also:Electronics and semiconductor manufacturing industry in India

With the demand for electronic hardware expected to rise rapidly toUS$400 billionby 2020, India has the potential to become an electronic manufacturing hub and government is targeting to achieve net zero imports of electronics by 2020.[62]After the launch of this project, 24.8% of smartphones sold in India in the April–June quarter of 2015 were made in India, up from 19.9% the previous quarter.[63][64][65]By 2019 that number has jumped to 95%.[66]

Various companies pledged investment in India to begin manufacturing

  • Foxconn:US$5 billioninvestment over 5 years in research and development and hi-tech semiconductor manufacturing facility in Maharashtra but it backed out from the MOU as it could not acquire the land parcel at the terms it wanted.[67][68][69]
  • Pegatron:Apple Inc supplier Pegatron in talks to open second Indian iPhone factory.[70]
  • Huawei:new research and development (R&D) campus inBengaluruwith an investment ofUS$170 million[71][72]and telecom hardware manufacturing plant in Chennai.[73]
  • Motorola Mobility:manufacturing atSriperumbudurnear Chennai run byFlextronics.[74][75]
  • Micromax:3 new manufacturing units in Rajasthan, Telangana and Andhra Pradesh with₹3 billion(US$36 million) investment.[76][77]
  • Qualcomm:"Design in India" programme to mentor ten Indian hardware companies with the potential to come up with innovative solutions and help them reach global scale.[78]
  • Samsung:10 "MSME-Samsung Technical Schools"[79]and manufacturing ofSamsung Z1in its plant inNoida.[80]
  • Spice Group:₹5 billion(US$60 million) mobile phone manufacturing unit inUttar Pradesh.[81]
  • Vivo Mobile Indiabegan manufacturing smartphones at a plant in Greater Noida with 2,200 employees.[82]
  • Wistron:Taiwanese company to start manufacturing of Blackberry, HTC and Motorola devices at a new factory in Noida.[83]
  • Xiaomi:smartphones to be manufactured at aFoxconn-run facility inSri Citymade operational by producing XiaomiRedmi2 Prime.[84][85]
  • VVDN Technologies: ODM based out of India[86]expanded its manufacturing with additional 10-acre Global Innovation Park in India in line with government's Make in India initiative.[87][88][89]

Food processing

[edit]
See also:Indian cuisine,List of largest producing countries of agricultural commodities,andIndian Institute of Food Processing Technology

PithaofOdisha,GushtabaofKashmir,Chicken CurryofPunjab,KhakhraandKhandviofGujarat,Bamboo Steam Fish,Vadaand Medhu Vada ofKarnataka,Khajaand Inarsa ofBihar,KebabofUttar PradeshandPuran poliofMaharashtrahave been selected astraditional regional foodto be promoted in the ongoing campaign.[90]

Marine Products Export Development Authorityannounced the deal to supply shrimp eggs to farmer in India for eventual exports of shrimp from India to other countries.[91]

In Odisha Investor Summit, Poseidon Aquatech announced plans to undertake shrimp farming and processing in the state at the cost of ₹100 crore ($14.7 million).[92]

Noodles manufacturer Indo Nissin Foods Ltd also announced that it intended to invest additional ₹50 crore ($7.3 million) to expand the existing facility in Odisha by 2017.[92]

Mining

[edit]
See also:Mining in India,List of mines in India,Iron and steel industry in India,Coal mining in India,andNatural resources of India

During Odisha investor summit,NLC Indiasigned an MOU with government of Odisha to set up a coal mining processing plant at the cost of ₹7,500 crore ($1.1 billion).[92]

Railways

[edit]
See also:Indian RailwaysandDedicated Freight Corridors
Vande Bharat Expresswith "Make in India" initiative
  • Alstom/GE Transportation:The French and American rolling stock manufacturers announced₹400 billion(US$4.8 billion) locomotive manufacturing factories in Madhepura and Marhaura in Bihar.[93]Alstom SA intends to start producing huge batteries in 2025 for use in railway traction components. At first, Alstom will import the batteries from France, but later, at its Maneja site inGujarat,the company will produce indigenous cells.[94]
  • Hyperloop One:The American company working to commercialiseHyperloop,signed a Framework Agreement with government of Maharashtra to begin the development of the route from Mumbai to Pune, starting with an operational demonstration track.[95]

Renewable energy

[edit]
See also:Renewable energy in India


In August 2016,NLC Indiaannounced that it is going to set up a 500 MW solar power plant in Odisha at the cost of ₹3,000 crore ($441 million)[92]

Thermal power

[edit]
See also:Electricity sector in IndiaandList of power stations in India

In May 2017, the Union Cabinet approved the construction of 10 indigenously built Pressurised Heavy Water Reactors (PHWRs). The contracts for the reactors worth an estimated₹70,000 crore(US$8.4 billion) will be awarded to Indian companies. The construction 10 reactors with a combined nuclear capacity of 7 GW is also expected to create 33,400 direct and indirect jobs.[96]

During Odisha investor summit,NLC Indiasigned an MOU with government of Odisha to set up a 2,000MW Thermal power plant at the cost of ₹15,000 crore($2.2 billion)[92]

Wellness and Healthcare

[edit]
See also:Medical tourism in India,Wellness tourism,Ayurveda,AYUSH,andHealthcare in India


Assam Cancer Care Foundation is a joint partnership between the Government of Assam and the Tata Trusts. Tata Trust said that setting up of six cancer hospitals and laying the foundation stone of seven new cancer hospitals has raised Assam in terms of higher level of healthcare and treatment of cancer not experienced by other states of the country.[97]

InAssam investor summit,Indo-UK Institute of Health announced that it will set up a medical city inGuwahatiat cost of ₹1600 crore ($231 million).[98]

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