- One of the game-changing economic initiatives of the Government of India, ‘Make in India’ was launched in 2014.
- It aims at encouraging companies and individuals across the globe to facilitate investment, foster innovation, build world-class infrastructure, and build a hub for manufacturing, design, and innovation in India.
Pillars of Make in India
- The “Make in India” initiative is based on four pillars, which have been identified to give a boost to entrepreneurship in India.
- New Processes:
- ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship.
- A number of initiatives have already been undertaken to ease the business environment. The aim is to de-license and de-regulate the industry during the entire life cycle of a business.
- New Infrastructure:
- Make in India intends to develop well-equipped industrial corridors with all necessary facilities for the expansion of industrial activities, build smart cities to provide citizen services with ease, and create world class infrastructure with state-of-the-art technology, and high-speed communication network amenities.
- New Sectors:
- To identify economic growth centres in India, the ‘Make in India’ initiative identified 27 sectors in manufacturing, infrastructure and service activities.
- New Mindset:
- ‘Make in India’ intends to bring a paradigm shift in how the Government interacts with industry. The Government will partner industry in the economic development of the country. The approach will be that of a facilitator and not a regulator.
Advantages of Make in India
- Effective implementation of the initiative will have a positive impact on the overall socioeconomic growth of India, especially in manufacturing growth and the creation and provision of employment opportunities both in rural and urban areas.
- A massive increase in employment will enhance the purchasing power of the citizen, expand the consumer base for companies, and address the problem of poverty.
- The Make in India initiative targets export-oriented growth. The export-oriented growth model of this initiative will positively impact India’s balance of payments position and support in accumulating foreign exchange reserves.
- The ‘Make in India’ initiative’s propensity to attract foreign investment will also ensure bringing in technical expertise and creative skills.
- There is a need to facilitate the land acquisition process, create an appropriate labour development ecosystem for efficient and effective enforcement of laws/rules outlining entry and exit guidelines with clarity, rationalise the taxation regime, and enable technology acquisition and dissemination.
- Universities and other reputed research organisations need to enhance their innovation work towards creating a healthy business environment in India.
Fostering Balanced Regional Development
- The ‘Make in India’ initiative has a special approach on development decentralisation. The ‘OneDistrict One-Product’ (ODOP) initiative is an important manifestation of the ‘Make in India’ vision.
- The intention is to facilitate promotion and production of the indigenous products from each district of the country.
- ODOP envisages fostering balanced regional development and aims to select, brand, and promote at least One Product from each District of the country for enabling holistic socioeconomic growth across all regions.
- The Make in India initiative has the potential to make India a centre of the manufacturing sector in the world.
- While MSMEs, the services sector and startups, are going to play a critical role in the success of Make in India, there is a lot to do through this initiative to ensure balanced regional growth and address issues of poverty, unemployment, and disparities of income and wealth.