Make In India
Make In India
Date: December 31, 2014
Make In India
India is ranked 142 in list of ease of doing business but large domestic market has till now motivated companies to manufacture in India .The make in India initiative basically promises the investors – both domestic and overseas – a conducive environment to turn 125 crore population strong-India a manufacturing hub and something that will also create job opportunities.
Targets of the initiative-
- An increase in manufacturing sector growth to 12-14% per annum over the medium term.
- An increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
- To create 100 million additional jobs by 2022 in manufacturing sector.
- Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
- An increase in domestic value addition and technological depth in manufacturing.
- Enhancing the global competitiveness of the Indian manufacturing sector.
- Ensuring sustainability of growth, particularly with regard to environment.
India has 3Ds as PM has rightly identified it Democracy, Demographic dividend and Demand. In order to utilize the demographic dividend and develop the manufacturing sector following steps should be taken.
1) Govt. must try to reduce dependency on imports of defence equipment and should incentivize scientist and Ordnance factories with modern latest facilities, which would increase our defence production.
2) Govt. should try to open Industrial training centres for electronics equipment to harness the potential of ever growing electronic market. who know, Next Microsoft/apple could be an Indian company .
3) Govt. should modify the BOT and PPP with a edge in investment from private sector, so as to reduce govt. dependency incentive linked investments.
4) Till we have life on earth, Healthcare is essential needs, and with Indian pharmaceuticals, excelling in providing with ultra low cost X-rays and EGC, the situation seems quite favourable. Also polarization of west towards, Ayurveda / Herbal Medicines could turn out to be win-win situation.
5) Promoting of Farming syndicate with drip irrigations, and cooperative societies for development of horticulture , coupled with rising demand for agri-equipments would be very high.
The following sectors provide us with domestic demand to foster growth and attract investment, along with harnessing out inherent capabilities.
- Defense- India is the largest importer.
- Electronics hardware- With the import bill rising, this sector is crucial. India has a large and ever growing electronics market.
- Construction- Investment in infrastructure has to be the backbone of growth.
- Healthcare- We have already proven our world class capabilities with our pharmaceutical sector.
- Agro Industry- Huge wastages, along with abysmal returns in agriculture at the producer level make this mandatory.
Challenges to be addressed in Make in India initiative:
Creating healthy business environment will be possible only when the administrative machinery becomes efficient. India has been very stringent when it comes to procedural and regulatory clearances. A business-friendly environment will only be created if India can signal easier approval of projects and set up hassle-free clearance mechanism.
To make the country a manufacturing hub the factors of non-tax barriers, such as various quotas must be removed. India should also be ready to give tax concessions to companies who come and set up unit in the country.
India’s small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to give special sops and privileges to these sectors.
India must also encourage high-tech imports; research and development (R&D) to upgrade ‘Make in India’ to realize its potential. To do so, India has to be better prepared and motivated to do world class R&D. The government must ensure that it provides platform for such R&D activities.
Suggested Question for mains-
Q1: To Become a manufacturing nation, India has to make a clear strategy and favorable policy environment for manufacturing sector. Critically examine the issues and challenges involved in “MAKE IN INDIA campaign? (250 WORDS)
Q 2: It is suggested that to make ‘Make in India’ program a success, India must focus on building competitive advantage and global scale in sectors where it has a large domestic market and certain inherent capabilities. Examine these capabilities and explain how India can make use of them to have a competitive advantage.
GS Paper- ii Government policies and intervention for development in various sectors and issues arising out of their design and implementation.
GS Paper-iii Indian Economy and issues relating to planning,mobilization of resources,growth,development and employment