Make in India is an initiative of the Government of India. It was launched by the Indian Prime Minister, Narendra Modi on 25 September 2014. Under the ‘Make in India’ initiative, the government has, since its inception, announced several steps to improve the business environment by easing processes to do business in the country.
According to experts, it was a positive invitation to potential partners and investors around the world. Make in India, according to the supporters is much more than an inspiring slogan. It represents a comprehensive overhaul of processes and policies. It represents a complete change of the Government’s mindset – a shift from issuing authority to business partner, in keeping with Prime Minister Modi’s tenet of ‘Minimum Government, Maximum Governance’.
Purpose:
The purpose of the initaitive is:
- Making India a global manufacturing hub.
- To encourage Domestic companies and Multinationals to manufacture their products in India.
- Creating millions of jobs in the country.
- Attract foreign investments.
With this objective, the initiative focuses on 25 sectors of the economy for job creation and skill enhancement. Some of these sectors are automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism and hospitality, wellness, railways, design manufacturing, renewable energy, mining, bio-technology, and electronics. The initiative hopes to increase GDP growth and tax revenue. It also aims at high quality standards and minimising the impact on the environment. It hopes to attract capital and technological investment in India.
India’s manufacturers have a golden chance to emerge from the shadow of the country’s services sector and seize more of the global market. McKinsey analysis finds that rising demand in India, together with the multinationals’ desire to diversify their production to include low-cost plants in countries other than China could together help India’s manufacturing sector to grow by many fold by 2025, while creating up to million domestic jobs.
The prime minister’s ‘Make in India’ campaign signals a key objective of the present government’s economic policy: promotion of rapid manufacturing-led growth. This means not just rapid growth of manufacturing, but also a lead role for manufacturing in India’s growth process. It does not call for discouragement or lowering of services growth; it calls for services growth to be pulled by manufacturing growth and not vice versa.
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