AFPA

  Make in India is an initiative launched by Narendra Modi, India’s Prime Minister, on 25 September 2014 to foster the growth rate of the manufacturing sector to 12-14% per annum in India by encouraging multinational as well as domestic companies. It is the mission of Narendra Modi launched within some months to strengthen India’s economy.

As far as the scope of Make in India is concerned, it was to increase job opportunities and skill development by boosting job sectors.  Modi’s policy project intention is substituting import of manufactured products with domestic production. The main focus on manufacturing has made the thinkers consider it the best way to develop rural and agrarian economies. It was with the approach of raising foreign investments, increasing the contribution of the manufacturing sector to GDP by 25% till 2025, and developing modern infrastructure.

The sectors which are under this program are:

  • Automobiles
  • Aviation
  • Biotechnology
  • Chemicals and Petro-chemicals
  • Constructions
  • Defence
  • Electronic System
  • Food Processing
  • IT and IBM
  • Leather
  • Mining
  • Oil and Gas
  • Pharmaceuticals
  • Ports and Shipping
  • Railway
  • Renewable Energy
  • Space
  • Thermal Power
  • Tourism and Hospitality.

The campaign- Make in India is under the progress in many sectors but along with facing failures in others. Where one side has achieved successes in many areas, in another way, It has become a debatable issue as the failed campaign too. India’s undeveloped infrastructure and lack of proper skill are themselves the reason for failures.

What are its achievements and progress?

All the above-written sectors have been noticed under progress so far. Manufacturing units have been inaugurated such as for automobile industry-major investments are by reputed companies- ISUZU motors in Sri City Andhra Pradesh, Suzuki motors in Ahmedabad, Tata Motors and Fiat in Ranjangaon, Pune, and Mercedes Benz in Chakan. And the assumptions are about the investment of $2 billion and 10,000 job creation by 2021 in India by Kia.

Aviation

29% of passengers have been increased carried by domestic airlines, and in 13 cities, the operation of domestic cargo terminals has started. 5 times increase in FDI, Launching of GAGAN, 160 airports, and 18 Greenfield airports have been approved.

Biotechnology

A virtual centre has been operationalised for the development of technology in biofuel areas. In 2015 Rotavac (Rotavirus vaccine) was manufactured. 30 bio incubators and biotech parks are launched.

Chemicals and petrochemicals

An increase of 107 % in FD equity is noticed in this sector.

Constructions

Pradhanmantri Aawas Yojana Gramin Houses have led to the construction of 7 million houses. Also, the construction sector secures 2nd position in terms of boost in providing employment.

Defence

With 95% local source, defence products are manufactured in India. In 2015-16, even there was export also to 28 countries.

Electronic system

This industry has witnessed a 27% increase, with around 38300 created jobs with the setup of 38 mobile manufacturing units. Also, the advancement of ‘Disha’ has enrolled 99.56 lakh candidates for training.

Food Processing

88 cold chain projects and 8 mega Food parks have been operationalised out of 134 and 42 sanctioned projects, respectively.   There is also an improvement in the growth rate of gross value added and FDI equity inflow. Also, the Nivesh Sandhu-an app was launched in 2017.

IT and IBM

There has been significant growth from 2.3 billion to 5.9 billion in the computer software and hardware sector.

Leather

India is the second-largest producer and exporter of footwear and leather garments. The program of Indian footwear, leather, and accessories development programme in which around 4.44 lakh people were trained, was launched in 2017.

Mining

The mining sector, in terms of gross value added, has seen growth by 12.5% in 2017- 18.

Oil and gas

Investment in refineries has also been put forth for more and more export.

Pharmaceuticals

Now product mass manufacturing has been enabled by Indian drugs and pharmaceutical limited. Pharma Sahi Dham is in the service of providing real-time information about the prices of medicines.

Ports and Shipping

A total of 173 projects under the Sagarmala Project is introduced with an investment of INR 4 lakh crore. Ports and shipping are managed from India to all other areas.

Railway

The fastest train in India is Gatimaan Express, which covers 188 kilometres in 1 hour and 40 minutes. The speedup of the other 51 trains by more than an hour has been achieved in the year 2017-18.

Space

Antrix Corporation limited has managed the marketing of space services and products globally. The successful example is Mangalyaan-India’s first attempt at spacecraft to reach Mars successfully.

Thermal power

The approval of 10 pressurized heavy water reactors was received in May 2017.  98.8% of villages have received the facility of electricity.

Tourism and Hospitality

According to FDI inflow, tourism and hospitality come under the top 10 sectors as India has crawled up 13 places from 65 to 52. Swadesh Darshan and Prasad also have been launched.

The campaign has given birth to the innovation, meanwhile the better management of various projects.

The top achievers of Make in India are Telangana, Chhattisgarh, Jharkhand, Andhra Pradesh, Haryana, Madhya Pradesh, Rajasthan, Karnataka, and Gujarat. Other achievers following the toppers are Odisha, Tamil Nadu, Uttarakhand, West Bengal, Uttar Pradesh, and Maharashtra. The fast movers are Assam, Bihar, and Himachal Pradesh.

Failures of Make In India

Though modest achievements are there, the expected results or objectives in the current years are not anywhere to be seen aa achieved due to exaggerated goals. The share of manufacturing fell to 14% from 15% that of 2014.

When the comparison comes into place between Indian and China, it reveals that China is five times more economical than the size of India’s. Most of the public enterprises underwent the loss due to low productivity and non-effective systems. No update in the new data about Make in India from the PM’s office also reveals its flop side. Followed by initial growth, the reverse trend has shown the decline in sales of products. Only targets are to be seen without the answers of how and when. Hence, the plan and strategies of redesigning India’s economy need to be changed, noticing no uniform for success.

List of failures are –

1) Opposite to the objectives, Gross Domestic Products of India have fallen drastically.

2) Due to the launching of too many initiatives under many sectors, the loss in policy focus with inbuilt inconsistencies has been noticed. Also, the proportionate investments are not yet in their intended place.

3) The growth rate of 12 to 14% has been considered an impossible and lofty target to achieve by the industrial sector.

4) Another failure is the investment dependency of the policies on foreign capital and global markets for the production.

Reasons of Why Make In India has failed in delivering its objectives-

1) Demonetisation

2) Poor implementation of GST

3) Investments – There are no direct Investments. These are coming from shell companies that are Mauritius based, and some are the recycling of black money from India.

Make in India walks on the steps of China’s or US projects. But the productivity of Indian companies is low if it is compared with those of Thailand and China. Also, the reason for less productivity is the insufficient skills of Indian workers.

The objectives consist of developing supply chains, investment in modern types of equipment, and achieving economies of scale, but is the size of industries sufficient to digest the developments? No, industrial units are too small.

Not only insufficient skills are the reason for failure, but also complicated labour regulations are the hurdles in success. The laws include the rule of equipping only 100 employees in a plant.

Another reason for slow growth is more infrastructure, which is not up to the mark to complete the country’s counterparts.

Some other essential points are the consumption of power more, but the cost of electricity is the same in China with India and less convenient transportation as it takes more time than needed.

Corruption, always being the point of setting India back, and bureaucratic procedures are not good enough for the growth in the number of investors.

Overall, India has faced failures like the investment and growth date due to its low points like poor accountability and management of polices.

Conclusion

Make in India, the national campaign, was launched by Narendra Modi in 2014. It was established primarily for the growth in the manufacturing sector of domestic products and reaching the international heights for the export. Besides, Modi thought of reducing unemployment and enhancing the skills of the youth by launching more job industries.

According to the objectives, the project of Make in India has secured some of its achievements, but it has been considered a complete failure while reaching 2019-2020. Achievements include the growth in FDP in the sectors like Aviation, Chemicals, and Petro-chemicals. Investments by companies like Mercedes, Tata Motors, and Suzuki motors in the automobile sector came under the sign of progress. Many programs, constructions, and developments have been launched.

However, the main objective of manufacturing has not met Modi’s expectations. There is a loss in gross domestic products, inconsistency in policy focus, and no direct investment. The possible reason for failures is the lofty dreams taken without noticing the capability of India’s infrastructure and skill of workers.