Make in India is a government movement started by the government of India on 25th September 2014 to encourage companies to make and manufacture their products in India. Make in India is a type of Swadeshi movement that covers more than 25 sectors of the Indian economy. It is a part of the digital India campaign. The make in India movement aims to bring economic change in the country by encouraging companies to manufacture in India with investments into manufacturing. There have been a lot of opinions on the movement and regarding its success or failure. But, the aim was to make sure India wasn’t behind in making its products and not relying more heavily on foreign goods. It aims to give India a world-class manufacturing status and to be globally competitive.
Probably one of the most notable actions that India has taken in the guise of economic reforms in the past decade can be cited to the Make in India movement. Launched on September 25th, 2014, the Make in India campaign was almost a kind of nationalist movement aimed at improving the manufacturing capacity of the industrial sector and to encourage newer business ideas and products to improve the economic scenery of the country. Another main motive of this movement could be contributed towards the governments’ campaign to encourage people to opt for products and services that are produced by domestic sources instead of helping foreign players to dominate the Indian economy.
With the commencement of this program, India received investment almost around rupees 16.40 lakh crores, and subsequent follow up of investment inquiries. Due to the sudden surge of investments the Indian economy experienced a booming period of growth and became the most popular destination for foreign direct investment which was evaluated more than that of both China and the United States. India also paired up with Japan to come forth with a new initiative called “Japan-India Make-in-India Special Finance Facility”. There were a lot of contributions from national factors as well, such as states like Odisha, Gujrat, and Haryana which further contributed to this cause.
India has received investment commitments over USD 240 billion and investments over $22 billion between 2014 and 2016. Due to this, India emerged as the top global destination for direct foreign investment. As per the policy, 100% foreign direct investment (FDI) is allowed in all the 25 sectors except for the space industry, defense industry, and media of India sectors. In line with this movement, many states have also started their independent movements such as Make in Odisha, Magnetic Maharastra, Vibrant Gujarat, etc. By the end of 2017, India rose 42 places in the ease of doing business index, 32 places in the Global Competitiveness index, and has seen a steep rise in the number of manufacturers in India.
The dedicated website for the movement is Make in India It shows all the 25 sectors involved such as automobiles, chemicals, aviation, IT, etc. The initiative was highlighted in many critical international events. Due to this movement, India has shown remarkable structural transformation, and it has changed the way of doing business in India. The number of investments and investors that this movement brought to India is tremendous, and it is one of the best government initiatives to be taken up the Modi government.
According to the latest reports by the World Bank, India witnessed a drastic jump in its position when it came to Doing Business Report, Ease of Doing Business index, Global Competitiveness Index, and Logistics Performance index. The government also opened up multiple new options to facilitate and help businesses grow such as specialized freight carriers, industrial corridors, and a growing dependency on digital mediums. Not only was the initiative targeted to improve India’s economic performance and push it as a top player in the international market, but to also create demand in its domestic market and create more employment opportunities.
Some of the sectors covered by this initiative are listed below:
- Automobiles: Kia invested to build its manufacturing facility in Andhra Pradesh, SAIC Motors invested in Gujrat
- Aviation: French drone manufacturer LH Aviation invested in manufacturing units in India, Thurst Aircrafts signed an MOU with the state of Maharashtra.
- Construction: Chinese company Dalian Wanda Group plans to create industrial and residential complexes in Haryana
- Defense Marketing: India and Russia have come together to manufacture and market defense components
- Electronic systems: Foxconn, Huawei, Lenovo, Qualcomm, Micromax, Samsung, Xiaomi, Wistron are of the companies planning to expand their businesses in India.
Apart from the above-listed industries, a lot of investments and interest has been shown towards industries like food processing, mining, oil and gas, pharmaceuticals, railways, renewable energy, thermal power and wellness, and healthcare.
The make in India campaign has boosted the Indian economy. It has taken India to a whole different level. It has made India a very good destination for doing business. The government policies underlying this movement have made India into a business hotspot. The major companies that have arrived in India after the movement has bolstered the technological improvement of the country. We have seen stark increases in the economic scales of India. All the 25 sectors have benefitted from the movement as many Indian youths have got jobs in the sectors which are non-existent before the movement. The movement is surely a step in the right direction for the development of India.
Overall, the make in India movement is one of the most successful initiatives of the Indian government. Even foreign companies have joined in. Japan has paired up with India to start Japan-India Make in India Special Finance Facility fund to increase investments in India. This is a good sign for India as the country is rapidly growing and starting to become one of the best business spots in the world.