Make in India is an initiative of the Government of India to encourage companies to manufacture in India and incentivize dedicated investments into manufacturing. The objective of Make in India is to increase the number of innovative and high-quality products created in India, and to increase the competitiveness of Indian manufacturing, technology and engineering services in global markets.
The Make in India programme focuses on 25 industries. Automobiles, automobile components, aviation, biotechnology, chemicals, construction, defence manufacturing, electrical machinery, electronic systems, food processing, IT & BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textile and garments, thermal power, tourism and hospitality are some of these industries.
When it comes to outsourcing, manufacturing, and services, China is a big competitor to India. India’s deteriorating infrastructure and obsolete logistics infrastructure make it impossible for the country to acquire elite status as a manufacturing centre. Former governments’ bureaucratic approaches, a lack of reliable transportation networks, and pervasive corruption make it difficult for businesses to produce on time and in sufficient quantities. The Modi government has promised to remove these roadblocks, making the country an ideal location for investors to establish businesses. With Asia emerging as the world’s outsourcing powerhouse, India is quickly becoming the favoured manufacturing site for most global investors. The Indian government’s initiative to harness this demand and develop the Indian economy is known as Make in India. According to several researches, no other sector appears to have such a large multiplier effect on economic growth in a country as manufacturing. Manufacturing has more backward links than other industries, therefore increased demand in manufacturing drives growth in other sectors. This results in more jobs, investments, and innovation, as well as a greater standard of life in the economy as a whole.
Initiatives to Make in India
Railways, insurance, military, and medical gadgets have all been opened up to additional Foreign Direct Investment for the first time (FDI).
The government intends to improve physical infrastructure primarily through PPP investment. Investment in ports and airports has increased. In addition, dedicated freight corridors are being developed.
The government has announced plans to build five industrial corridors. They are already in motion. These corridors run the length and breadth of India, with a strategic emphasis on inclusive development that will supplement industrialization and urbanisation in a planned manner. The corridors are as follows:
Industrial Corridor Delhi-Mumbai (DMIC)
Industrial Corridor of Amritsar-Kolkata (AKIC)
Economic Corridor Bengaluru-Mumbai (BMEC)
Industrial Corridor Chennai-Bengaluru (CBIC)
Industrial Corridor Vizag-Chennai (VCIC)
Several schemes have been launched to support the Make in India initiative.
Startup India: The main idea behind this program is to create an ecosystem that promotes the growth of startups while also driving long-term economic growth and creating large-scale employment.
Digital India: This initiative aims to transform India into a knowledge-based, digitally empowered economy.
Pradhan Mantri Jan Dhan Yojana (PMJDY): The mission envisions financial inclusion as a means of ensuring affordable access to financial services such as banking savings and deposit accounts, remittances, credit, insurance, and pensions.
Smart Cities: The Smart Cities Mission’s goal is to drive economic growth and improve people’s quality of life by enabling local area development and harnessing technology, particularly technology that leads to Smart outcomes.
Swachh Bharat Abhiyan: The Ministry of Tourism has established a Project Monitoring Unit for the Swachh Bharat Mission to accelerate efforts to achieve a Swachh Bharat, Swachh Prayatan, and bring focus on hygiene and sanitation. The mission’s goal is to create neat and clean tourist destinations that will attract more foreign and domestic tourists. The SBM Division is in charge of coordinating Swachhta Awareness activities for tourists, school/college students, and tourism stakeholders.
International Solar Alliance (ISA): The ISA is an alliance of 121 countries, the majority of which are sunshine countries that lie entirely or partially between the Tropics of Cancer and Capricorn. This is India’s initiative aimed at promoting solar technology research and development as well as developing policies in this area.
ESDM Sector in India
With technical advancement in Internet of Things (IoT) dictating that the new generation of interconnected devices be capable of smart-computing, India’s semiconductor industry is set for a steady upsurge with bright prospects, provided India’s generic obstacles such as fund crunch, and infrastructural deficits are adequately addressed.
The Indian electronics industry expanded in the early years of the twenty-first century, aided by government policies and incentives, as well as international investment. The semiconductor industry, it’s most important and resource-intensive segment, benefited from brisk domestic demand growth. Semiconductors were needed by many industries, including telecommunications, information technology, industrial machinery and automation, medical electronics, automobiles, engineering, power and solar photovoltaic, defense and aerospace, consumer electronics, and appliances.
Initiatives in the semiconductor industry
India is a net importer of electronics, with China accounting for the vast majority of the country’s imports. In 2015, electronics surpassed gold to become the second most valuable category of imports into the country, trailing only crude oil.
The government’s support, which is critical to chip manufacturing because it is a capital-intensive industry, has also increased dramatically. Jai Prakash Associates and Hindustan Semiconductor Manufacturing Company intend to invest more than Rs 63,000 crore, making this one of the largest investment announcements in the domestic manufacturing sector to date. Depending on the technology used, a chip plant can cost between $3 billion and $5 billion to build.
Market size
The appliance and consumer electronics market in India, which was worth USD 9.7 billion in 2014, is expected to grow at a compound annual rate of 13.4 percent to USD 20.6 billion by 2020. Set-top boxes are expected to be the fastest growing category within the consumer electronics segment, with Y-o-Y growth of 28.8c/o between 2014 and 2020, followed by televisions at 20%, refrigerators at 10%, washing machines at 8-9%, and air conditioners at around 6-7%. The market opportunity for aerospace and defense (A&D) electronics in India is expected to be worth up to USD 70 billion by 2029-2030, with approximately USD 55 billion coming from electronics that are part of the platforms to be procured and the remainder coming from system-of-system projects.
