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Research Fellow, SCMS,



Make in India is an international marketing campaigning slogan coined by the Prime Minister of India, Narendra Modi to attract businesses from around the world to invest and manufacture in India. The campaign has been concentrated to fulfill the purpose of Job Creation, Enforcement to Secondary and Tertiary sector, Boosting national economy, converting the India to a self-reliant country and to give the Indian economy global recognition. The paper presents, the overview of Make in Indiacampaign. It includes also the new initiatives & policies of make in Indiacampaign. The paper focuses on advantages & disadvantages of make in Indiacampaign. In the last part of the paper highlights on future or success of make in India campaign in India.


India is a country rich in natural resources. Labour is aplenty and skilled labour is easily available given the high rates of unemployment among the educated class of the country. With Asia developing as the outsourcing hub of the world, India is soon becoming the preferred manufacturing destination of most investors across the globe. “Make in India” is the Indian government's effort to harness this demand and boost the Indian economy. India ranks low on the "ease of doing business index". Labour laws in the country are still not conducive to the “Make in India campaign”. This is one of the universally noted disadvantages of manufacturing and investing in India. The new government initiating a new ways for free flows of capital. Make in India is an initiative of the Government of India, to encourage companies to manufacture their products in India.

Prime Minister Narendra Modi launched the Make in India initiative on September 25, 2014, with the primary goal of making India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country. Led by the Department of Industrial Policy and Promotion, the initiative aims to raise the contribution of the manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025 from its current 16%. Make in India has introduced multiple new initiatives, promoting foreign direct investment, implementing intellectual property rights and developing the manufacturing sector.It targets 25 sectors of the economy which range from automobile to Information Technology (IT) & Business Process Management (BPM), the details of each can be viewed on the official site ( also seeks to facilitate job creation, foster innovation, enhance skill development and protect intellectual property. The logo of ‘Make in India' – a lion made of gear wheels – itself reflects the integral role of manufacturing in government's vision and national development.

Objectives and Research Methodology of the Study:

The study is based on secondary data which is collected from the published reports of ministry of external affairs, newspapers, journals, websites, etc. The study was planned with the followingobjectives:

1. To study the “Make in India Campaign” in India.

2. To explain the major new initiatives & Policies designed to facilitate investment and fostering innovation in manufacturing sector in India.

3. To know the advantages & disadvantagesof Make in India Campaign.

New Initiatives for Make in India Campaign:

The initiative is built on four pillars which are as follows:

1. New Processes:

 Doing business in India just got easier – new de-licensing and deregulation measures are reducing complexity, and significantly increasing speed and transparency.

 Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through eBiz portal.

 Validity of Industrial license extended to three years.

 States asked to introduce self-certification and third party certification under Boilers Act.

 Major components of Defense products' list excluded from industrial licensing.

 Dual use items having military as well as civilian applications deregulated.

 Services of all Central Govt. Departments & Ministries will be integrated with the eBiz – a single window IT platform for services by 31 Dec. 2014.

 Process of obtaining environmental clearances made online.

2. New Infrastructure:

India's manufacturing infrastructure and capacity for innovation is poised for phenomenal growth: new smart cities and industrial clusters, being developed in identified industrial corridors having connectivity, new youth-focused programs and institutionsdedicated to developing specialized skills.Impetus on developing Industrial Corridors and Smart Cities.

 A new ‘National Industrial Corridor Development Authority' is being created to coordinate, integrate, monitor and supervise development of all Industrial Corridors.

 Work on 5 smart cities in progress as a part of the Delhi- Mumbai Industrial Corridor: Dholera, Shendra-Bidkin, Greater Noida, Ujjain and Gurgaon.

 North-eastern part of India planned to be linked with other Industrial corridors in cooperation with government in Japan.

 New Industrial Clusters for promoting advance practices in manufacturing.

Approval accorded to 21 Industrial projects under Modified Industrial Infrastructure Up gradation Scheme with an emphasis on:

 Use of recycled water through zero liquid discharging systems.

 Central Effluent Treatment plants.

 Approval accorded to 17 National Investment and Manufacturing zones.

Nurturing Innovation – approval obtained for strengthening Intellectual Property regime in the country through:

 Creation of 1,033 posts.

 Further up gradation of IT facilities.

 Compliance with global standards.

 Application processes made online.

3. New Sectors:

With the easing of investment caps and controls, India's high value industrial sectors defense, construction and railways – are now open to global participation.

 Policy in Defence sector liberalized and FDI cap raised from 26% to 49%. Portfolio investment in Defence sector permitted up to 24% under the automatic route.

 100% FDI allowed in Defence sector for modern and state of the art technology on case to case basis.

 100% FDI under automatic route permitted in construction, operation and maintenance in specified Rail Infrastructure projects such as:

 Suburban corridor projects through PPP

 High speed train projects

 Dedicated freight lines

 Rolling stock including train sets and locomotives/coaches manufacturing and maintenance facilities

 Railway electrification

 Signaling systems

 Freight terminals

 Passenger terminals

 Infrastructure in industrial park pertaining to railway line/ including electrified railway lines and connectivity to main railway line

 Mass Rapid Transport Systems

4. New Mindset:

Most importantly, the Make in India program represents an attitudinal shift in how India relates to investors: not as a permit issuing authority, but as a true business partner.

 Dedicated teams that will guide and assist first-time investors, time of arrival.

 Focused targeting of companies across sectors.

Policies under 'Make in India' initiative:

There are four major policies under the 'Make in India' program:

1. Policy for New Initiatives:This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency in Administration. Under this policy, the Government has already rolled out:

 Environment clearances can be sought online.

 All income tax returns can be filled online

 Validity of industrial licence is extended up to three years

 Paper registers are replaced by electronic register by businessmen.

 Approval of the head of the department is necessary to undertake an inspection.

2. Policy for Foreign Direct Investment:Government of India has allowed 100 % FDI (Foreign DirectInvestment) in all sectors except Spare (74%), Defense 49%)and News Media 26%). FDI restrictions in tea plantation hasbeen removed, while the FDI limit in defense sector has beenraised from the earlier 26% to 49% currently.

3. Policy for Intellectual Property Facts:The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology. The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual property regime in the country, according to the website.

These are the various types of IPR:

 Patent: A patent is granted to a new product in the industry.

 Design: It refers to the shape, configuration, pattern, Colour of the article.

 Trade mark: A design, label, heading, sign, word, letter, number, emblem, picture, which is a representation of the goods or service.

 Geographical Indications: According to the website, it is the indication that identifies the region or the country where the goods are manufactured.

 Copyright: A right given to creators of literary, dramatic, musical and artistic works.

 Plant variety Protection: Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.

 Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor.

4. Policy for National Manufacturing: The vision of Make in India is to increase manufacturing sector growth to 12-14% p.a. over the medium term and to increase the share of manufacturing in the country's GDP from 16% to 25% by the year 2022. Further, the vision is to create appropriate skill sets among rural migrants and the urban poor for inclusive growth and to ensure the sustainability of growth, particularly with regard to environment.

Advantages of Make in IndiaCampaign:

1. Manufacturing sector led growth of nominal and per capita GDP. While India ranks 7th in terms of nominal GDP, it ranks a dismal 131st in terms of per capita GDP.

2. Employment will increase manifold. This will augment the purchasing power of the common Indian, mitigate poverty and expand the consumer base for companies. Besides, it will help in reducing brain drain.

3. Export-oriented growth model will improve India's Balance of Payments and help in accumulating foreign exchange reserves (which is very important given the volatility in the global economy with multiple rounds of Quantitative Easing announced by major economies).

4. Foreign investment will bring technical expertise and creative skills along with foreign capital. The concomitant credit rating upgrade will further who investors.

5. Foreign Institutional Investor (FIIs) play a dominant role (relative to FDI) in the Indian markets. However, FIIs are highly volatile in nature and a sudden exodus of hot money from India can affect a nosedive in the bellwether indices. Make in India will give an unprecedented boost to FDI flows, bringing India back to the global investment radar.

6. The urge to attract investors will actuate substantial policies towards improving the Ease of Doing Business in India. The Government of the day will have to keep its house in order (by undertaking groundbreaking economic, political and social reforms) to market Brand India to the world at large.

Disadvantages of Make in IndiaCampaign:

1. From a theoretical perspective, Make in India will tend to violate the theory of comparative advantage. If it is not economically feasible to manufacture a commodity in India, it is best to import the same from a country which enjoys comparative advantage in its production. International trade, after all, is welfare augmenting.

2. Reiterating the point made by Dr. Raghuram Rajan, India, unlike China, does not have the time advantage as it undertakes a manufacturing spree. The essential question is - Is the world ready for a second China?

3. Make in India will lead to an unsustainable focus on export promotion measures. One such measure is artificially undervaluing the rupee. This will have devastating consequences for the import bill.

4. A relative neglect of the world economic scenario may not augur well for Make in India. With the US and Japan economies yet to recover from their economic crises and with the EU floundering, one needs to be wary about the demand side of Make in India. The clairvoyance of the incumbent RBI governor to make for India should be put to good use.


In the overall study, Make in India is an ambitious project, but it is one that India desperately needs to kick start and sustain its growth momentum. With relentless policies towards this end, it is possible to make India the powerhouse of manufacturing sector in the world. At this moment, our Prime Minister's Make in India campaign appears to be an imaginative marketing campaign. But there is much thought and even more work that is required to convert this to reality. Fortunately, we have many natural advantages including a big labor pool and a large domestic market. In addition, with China's competitive advantage in manufacturing eroding. India has the opportunity to take some share of global manufacturing away from China. All we have to do to improve the ease of doing business in India are these stop tax terrorism, improve our  infrastructure, reform labor laws, investment in skills development, easy land acquire laws, transparency in administration, liberalized government policies, good governance, Restore broken trust between industry and government, Implementation of Goodsand Services Tax (GST) and fast tract approval. At the end it can be concluded that the concept of Make in India will definitely going to boost up the Indian economy and will help in meeting the major challenges of poverty, unemployment, low per capita income and help in sharing the burden of government.


1. Chetan Bhagat, Making India Awesome: New Essays and Columns, Rupa Publications, 2015.

2. Naman Vinod, Make in India: Pradhanmantri Narinder Modi Ka Naya Prayaas, Hind Pocket Books, 2015.

3. Bhatacharya, A. Bruce & A. Mukherjee (2014), CII 13th Manufacturing Summit, “Make in India: Turning Vision into Reality.



Research Fellow,School of Commerce &

Management Sciences, S.R.T.M.U.


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