Make in India | General Awareness for SSC CGL PDF Download

Introduction

The Make in India initiative, launched on September 25, 2014, by the Government of India, is a flagship program aimed at transforming India into a global manufacturing hub. It seeks to boost domestic manufacturing, attract foreign investment, create jobs, and foster innovation by promoting India as a favorable destination for industrial and economic activities. The initiative focuses on 25 key sectors, streamlining regulations, improving ease of doing business, and promoting India’s manufacturing capabilities to enhance economic growth and global competitiveness.

Objectives of Make in India

• Increase Manufacturing Contribution: Raise the manufacturing sector’s share in India’s GDP from 16% to 25% by 2025.
• Job Creation: Generate up to 100 million jobs in the manufacturing sector — an original target set for 2022, though progress continues beyond that timeline.
• Attract Foreign Investment: Encourage foreign direct investment (FDI) in manufacturing and related sectors.
• Promote Innovation: Foster innovation, research, and development (R&D) in manufacturing industries.
• Ease of Doing Business: Simplify regulatory processes and create a business-friendly environment.
• Global Competitiveness: Position India as a preferred manufacturing destination in the global supply chain.
• Sustainable Growth: Promote environmentally sustainable manufacturing practices.

Key Features of Make in India

Focus Sectors:
The initiative targets 25 priority sectors, including:

• Automobiles and Auto Components
• Aviation and Aerospace
• Biotechnology
• Chemicals and Petrochemicals
• Defence Manufacturing
• Electronics and IT
• Food Processing
• Pharmaceuticals
• Renewable Energy
• Textiles and Garments
• Railways, Ports, and Shipping
• Construction and Infrastructure

Each sector has specific policies and incentives to attract investment.

FDI Reforms:

• Liberalized FDI norms, allowing up to 100% FDI in most sectors under the automatic route.
• Key sectors like defence (up to 74%), railways (100%), and insurance (up to 74%) opened for FDI.
• Simplified approval processes to encourage foreign investors.

Ease of Doing Business:

• Streamlined regulations, single-window clearances, and online portals for approvals.
• Reduction in compliance burden through reforms like decriminalization of minor offenses.
• Introduction of the Business Reform Action Plan (BRAP) to improve state-level business environments.

Skill Development:

• Integration with skill development programs like Skill India and PMKVY to train a skilled workforce for manufacturing.
• Sector-specific skill councils to align training with industry needs.

Infrastructure Development:

• Development of industrial corridors (e.g., Delhi-Mumbai Industrial Corridor, Chennai-Bengaluru Industrial Corridor).
• Smart cities and Special Economic Zones (SEZs) to support manufacturing hubs.
• Investments in logistics, ports, railways, and roads to improve connectivity.

Production Linked Incentive (PLI) Scheme:

• Introduced in 2020 to boost manufacturing in 14 key sectors, including mobile phones, electronics, pharmaceuticals, and automobiles.
• Offers financial incentives (4-6% of incremental sales) to companies for domestic production.
• Aims to enhance exports and reduce import dependency.

Intellectual Property Rights (IPR):

• Strengthened IPR framework to protect innovations and encourage R&D.
• Faster patent processing and establishment of the National IPR Policy (2016).

Make in India 2.0:

• Focus on emerging sectors like artificial intelligence, robotics, green energy, and electric vehicles.
• Emphasis on self-reliance (Atmanirbhar Bharat) and integration with global value chains.

Implementation Structure

Central Level:

• The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, oversees the initiative.
• Invest India, a dedicated agency, facilitates investments and supports investors.
• Coordination with ministries like Defence, Electronics, and Renewable Energy for sector-specific policies.

State Level:

• States implement investor-friendly policies and compete to attract investments.
• State Governments develop industrial parks, SEZs, and provide incentives like tax breaks and land subsidies.

Industry Collaboration:

• Partnerships with industry bodies like CII, FICCI, and ASSOCHAM to promote the initiative.
• Engagement with global companies through roadshows and summits like the Global Investors Meet.

Digital Platforms:

• Make in India website and Invest India portal provide information, approvals, and investor support.
• Online dashboards track investment inflows and project implementation.

Key Achievements of Make in India

FDI Inflows:

• India attracted over $600 billion in FDI between 2014 and 2023, with manufacturing sectors like automobiles and electronics receiving significant investments.
• India ranked among the top 10 FDI destinations globally (UNCTAD reports).

Manufacturing Growth:

• Significant growth in sectors like mobile manufacturing (e.g., Apple, Samsung setting up plants in India).
• India became the second-largest mobile phone manufacturer globally by 2020.

PLI Scheme Success:

• Over ₹1.25 lakh crore in investments committed under PLI schemes, with a significant portion already realized.
• Boosted production of electronics, pharmaceuticals, and medical devices, with exports crossing $10 billion in some sectors.

Ease of Doing Business:

• India’s rank in the World Bank’s Ease of Doing Business Index improved from 142 (2014) to 63 (2020) before the index was discontinued by the World Bank in 2021.
• Reforms in starting a business, getting permits, and tax compliance.

Job Creation:

• Millions of jobs created in manufacturing, especially in electronics, automobiles, and textiles.
• Support for MSMEs and startups through policies like Startup India.

Defence Manufacturing:

• Increased domestic production of defence equipment (e.g., artillery guns, helicopters).
• Defence exports grew to over ₹21,000 crore by 2023.

Renewable Energy:

• India reached close to its target of 175 GW renewable energy capacity by 2022, achieving ~168 GW.

Challenges of Make in India

Infrastructure Gaps:

• Inadequate logistics and power infrastructure in some regions hinder manufacturing growth.
• High logistics costs (12-14% of GDP) compared to global averages.

Skilled Workforce:

• Shortage of skilled labor in advanced manufacturing sectors like electronics and aerospace.
• Need for better alignment between skill training and industry requirements.

Regulatory Challenges:

• Despite reforms, bureaucratic delays and complex land acquisition processes persist.
• Variations in state-level implementation of business reforms.

Global Competition:

• Competition from countries like China, Vietnam, and Bangladesh for manufacturing investments.
• Need to improve cost-competitiveness and supply chain efficiency.

MSME Constraints:

• Limited access to credit and technology for Micro, Small, and Medium Enterprises (MSMEs).
• High compliance costs for small manufacturers.

Environmental Concerns:

• Balancing industrial growth with environmental sustainability.
• Need for stricter adherence to green manufacturing practices.

Recent Developments and Initiatives

Atmanirbhar Bharat Integration:

• Make in India aligned with the Atmanirbhar Bharat (Self-Reliant India) mission to promote domestic manufacturing and reduce imports.
• Focus on sectors like defence, electronics, and pharmaceuticals for self-reliance.

PLI Scheme Expansion:

• Extended to new sectors like drones, green hydrogen, and semiconductors.
• Investments in semiconductor manufacturing (e.g., Vedanta-Foxconn plant in Gujarat).

Global Supply Chain Integration:

• Leveraging global supply chain shifts (e.g., China+1 strategy) to attract companies like Apple and Tesla.
• Free Trade Agreements (FTAs) with countries like the UAE and Australia to boost exports.

Green Manufacturing:

• Promotion of electric vehicles (EVs), green hydrogen, and renewable energy manufacturing.
• Policies to support sustainable practices under the National Green Hydrogen Mission.

Startup Ecosystem:

• Support for over 50,000 startups through Startup India, many in manufacturing and deep-tech sectors.
• Funding and incubation support for innovation in manufacturing.

Impact of Make in India

Economic Impact:

• Increased manufacturing GDP share and export growth in sectors like electronics and pharmaceuticals.
• Strengthened India’s position in global value chains.

Employment Impact:

• Created millions of direct and indirect jobs, particularly in tier-2 and tier-3 cities.
• Empowered MSMEs and startups through policy support.

Global Competitiveness:

• Positioned India as a viable alternative to China for manufacturing investments.
• Enhanced exports of manufactured goods like mobile phones and auto components.

Innovation and R&D:

• Increased investments in R&D, particularly in defence, biotech, and renewable energy.
• Strengthened IPR regime to protect innovations.

Social Impact:

• Improved livelihoods through job creation in manufacturing hubs.
• Empowered women and youth through skill development programs.

Monitoring and Evaluation

Invest India:

• Facilitates investor queries, tracks FDI inflows, and monitors project implementation.
• Provides a single-window platform for approvals and information.

DPIIT Dashboards:

• Real-time tracking of investments, industrial projects, and ease of doing business reforms.

State-Level Monitoring:

• States report progress on industrial parks, SEZs, and investor facilitation.
• Annual rankings under BRAP to assess state performance.

Industry Feedback:

• Regular consultations with industry bodies and investors to address challenges.

Grievance Redressal:

• Online portals and helplines for resolving investor and industry issues.

Conclusion

The Make in India initiative has been a game-changer in positioning India as a global manufacturing hub. By attracting significant FDI, creating jobs, and fostering innovation, it has strengthened India’s economic landscape and global competitiveness. The introduction of the PLI scheme and alignment with Atmanirbhar Bharat have further boosted its impact, particularly in high-growth sectors like electronics and renewable energy. Despite challenges like infrastructure gaps and skill shortages, Make in India’s focus on ease of doing business, sustainability, and self-reliance continues to drive India’s manufacturing growth. With sustained reforms and global partnerships, the initiative is poised to achieve its vision of making India a cornerstone of the global manufacturing ecosystem.