What is Make in India and Its Significance

Make in India is an initiative by the Government of India. It is to encourage companies to manufacture products in India and incentivize dedicated investments into manufacturing. It aims to create an environment for investment, develop a modern and efficient infrastructure and open up new sectors for foreign capital. And has been active since 2014. It encourages overseas companies to set up shop in India and at the same time, domestic companies increase production within the country. This leads to an increase in GDP and tax revenue. There are greater chances of products being high quality and of minimal damage to the environment. Other aims include

1. Fostering innovation

2. Protecting intellectual property

3. Enhancing skill development

It has the following three main objectives: `

1. Increase the manufacturing sector's growth rate to 12-14 percent per annum.

2. Create 100 M additional manufacturing jobs by 2022.

3. Ensure that the manufacturing sector's contribution to GDP is increased by 25 percent by 2025.

India emerged as the top destination globally in 2015 for FDI (foreign direct investment) 2015. 100% Foreign direct investment is permitted in all sectors, except the Space industry (74%), defense (49%), and Media (26%). In line with Make in India, individual states have launched local initiatives such as Make in Odisha, Tamil Nadu Global Investors Meet, Vibrant Gujrat, Magnetic Maharashtra, and Happening Haryana. According to the 2019 report (Ease of Doing Business) by the World Bank, India ranked 63rd among 190 countries. It is yet to achieve its desired goal. The share of manufacturing dropped from 16.3% of GDP to 15.1% in 2019 -2020. Some of the initiatives taken are:

1. Environment Clearances can be sought online.

2. All income tax returns can be filed online.

3. Validity of industrial license extended to three years.

4. Paper replaced by electronics.

5. Approval of HOD (head of the department) necessary to undertake an inspection.

6. FDI restrictions on tea plantations were removed.

The focus of Make in India lies on following: Automobile, Aviation, Biotechnology, Chemicals, Construction, Defense, Electronics, Food processing, IT and BPM, Leather, Media, Mining, Oil and Gas, Pharma, ports and shipping, railways, renewable energy, roads and highways, space, textile and garments, thermal power, tourism and hospitality, and wellness.