MAKE IN INDIA SCHEME EXPLAINED 101
MAKE IN INDIA SCHEME EXPLAINED 101
"Make in India scheme" is the BJP-led NDA government's flagship campaign launched on September 25, 2014, right after the successful insertion of Mangalyaan – a wholly indigenously built low-cost probe into the Martian orbit – the event highlighted India's success in manufacturing, science and technology, and all this at inexpensive costs.
So, a right time to boost the domestic manufacturing industry and attract foreign investors to invest into the Indian economy, Prime Minister, Mr Narendra Modi first mentioned the key phrase in his maiden Independence Day address from the ramparts of the Red Fort. Over a month later, the launch ceremony was held at the Vigyan Bhavan in New Delhi. The hall thronged with attendees inclusive of leading entrepreneurs and the CEOs of about 3000 companies from across 30 countries were invited to attend the launch the campaign in September 2014.
To revive manufacturing businesses and emphasize key sectors in India amidst the contribution of the manufacturing sector to the GDP is limited and growing concerns that most entrepreneurs are moving out of the country due to its low rank in ease of doing business ratings, the government expected this mission to generate jobs, attract much foreign direct investment, and transform India into a manufacturing hub preferred around the globe.
The Make In India campaign logo, a lion with machine parts, inspired by the Ashoka Chakra and designed to represent India's success in all spheres, represented the spirit of the mission.
With the total number of identified 25 priority sectors that shall be promoted adequately, the Make in India campaign by the government of India focused on sectors where the likelihood of FDI (foreign direct investment) is the highest and investment shall be promoted by the government of India.
On the campaign launch event, Prime Minister Modi emphasised on the aid this mission could do like the development of these sectors would ensure that the world shall readily come to Asia, particularly to India.
With Make in India subsidies, well, it will be an economy with the availability of both democratic conditions and manufacturing superiority made it the best destinations, especially when combined with the effective governance intended by his administration.
The list includes automobiles, food processing, renewable energy, automobile components, it and bpm roads and highways, aviation, leather, space, biotechnology, media and entertainment, textiles and garments, chemicals, mining, thermal power, construction, oil and gas, tourism and hospitality, defence manufacturing, pharmaceuticals, wellness, electrical machinery, ports, electronic systems, and railways.
Sector-specific initiatives: The government of India provides sector-specific subsidies for promoting manufacturing for example to boost manufacturing of electronics, the Govt. of India provides capital subsidy of up to 25% for 10 years. Each state in India offers additional incentives for industrial projects. Some of the states also have separate policies for the textile sector. Incentives are in areas like rebated land cost; relaxation in stamp duty exemption on sale/lease of land; power tariff incentives; the concessional rate of interest on loans; investment subsidies/tax incentives; backward areas subsidies; special incentive packages for mega projects.
Well, Make in India is more important today as it was before especially in times of Coronavirus, where China's impact on the economy is being evaluated.
The initiative started as an answer to the above question Indian manufacturing hub is not strong and several reasons appeared including infrastructure and logistics scenario, the bureaucratic approach of former governments, lack of robust transport networks, and widespread corruption makes it difficult for manufacturers to achieve timely and adequate production.
The Modi government has vowed to remove these hurdles and make the nation an ideal destination for investors to set up industries and yet again with Atmanirbhar Mission, a mission towards self-reliant India, it is becoming popular.
To know more about each of the 25 target sectors with statistics, reasons to invest, growth drivers, all policies relevant to investors and the individual sectors, government support, and opportunities for investors apart from showcasing the live projects that have been undertaken and FAQs, visit Make In India website
Get The CEO Magazine to your Door Steps; Subscribe Now
