Make in India is an initiative
launched by the government of India to encourage national, as well as
multi-national companies to manufacture their products in India. Make in India
was launched by Prime Minister Narendra Modi on 25 September 2014.
COUNTRY : * India
PRIME MINISTER: * Narendra Modi
KEY MEMBERS: * Ministry of
Finance
LAUNCHED DATE: * 25 September
2014
STATUS: * Active
WEBSITE: * http://www.makeinindia.com
What is ‘Make in India’
The ‘Make in India’ campaign has
its origin in the Prime Minister’s Independence Day speech in which he gave a
clarion call for “Make in India” and “Zero Defect; Zero Effect” policies. The
campaign aims to facilitate investment, foster innovation, enhance skill
development, protect intellectual property, and build best-in-class
manufacturing infrastructure in India.
The initiative seeks to woo
domestic and foreign investors by promising a business environment conducive to
them. In the PM’s words, India will offer a red carpet to an investor instead
of the hitherto red tape that they faced. The central government, various state
governments, business chambers and overseas Indian Missions are all expected to
play a key role in the successful operation of this initiative.
Invest India, the country’s
official agency for investment promotion and facilitation, will act as the
initial reference point for guiding foreign investors on all aspects of
regulatory and policy issues and would also help them in obtaining regulatory
clearances. The Government is closely looking to overhaul regulatory processes
in order to make them simple and reduce the burden of compliance on investors.
Why Manufacturing Matters: The Multiplier Effect
Balance of trade aside, there is a more compelling argument
for promoting manufacturing growth in India. Various studies have shown
convincingly that no other sector does more to generate broad-scale economic
growth and, ultimately, higher standards of living than manufacturing.
The magic lies in the linkages that manufacturing has with
other economic sectors. The substantial links with dozens of other sectors
throughout the economy ensures that manufacturing output stimulates more
economic activity across the wider economy than any other sector. This is
called as the multiplier effect of manufacturing.
But this manufacturing cannot be unregistered manufacturing
which suffers from low productivity as well as low rate of growth of
productivity. Rather, it is registered manufacturing which has the potential to
absorb the country’s large pool of unskilled labour and is also more attuned to
export-oriented production.
OTHERS:
Make in India will promote a rethink on how government works
and how it interacts with businesses. The new government has undertaken a
series of initiatives to remove the barriers to manufacturing growth and
promote India as a manufacturing destination.
Ease of Doing Business: India ranked 142 in the Ease of Doing Business
Index ranking in 2014, down from 140 in 2013. The ranking is significant as it
reflects the perceptions of the global business community about India’s
attractiveness as a place for doing business.
Other important reforms relate to the licensing process,
time bound clearances for applications of foreign investors, automation of
processes for registration with the Employees Provident Fund Organization and
Employees State Insurance Corporation, reducing the number of documents for
exports, adoption of best practices by states in granting clearances and
ensuring compliance through peer evaluation, self-certification, etc.
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