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Make in India campaign launched

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Indian Prime Minister Narendra Modi on 25 September 2014 launched the Make In India
(MIN) campaign with a high-pitch event held at New Delhis Vigyan Bhawan. The campaign
aims at reviving the job-creating manufacturing sector, which is being seen as the key to
taking the Indian economy on a sustainable high growth path. Make in India aims to take
manufacturing growth to 10% on a sustainable basis.
How MIN came into being?
The origin of the Make In India (MIN) campaign is from the Independence Day address of
Narendra Modi on 15 August 2014 from the ramparts of the historic Red fort. On that
occasion he had given the call for to Make in India and Zero Defect : Zero Effect policy.
He and his government followed that call and came up with the vision document on Make In
India. This vision document put emphasis to achieve a 10% annual growth in manufacturing
sector.
Important features of Make in India

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It aims to attract foreign companies to set up factories in India and invest in the countrys
infrastructure.
It aims to transform the economy from the services-driven growth model to labourintensive manufacturing-driven growth. This is expected to create over 10 million new jobs
annually.
25 key sectors have been identified in which India has the potential of becoming a world
leader. These include automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation,
leather, tourism and hospitality, wellness, railways, etc.
A dedicated new portal (www.makeinindia.com) has been especially created to answer
queries from business entities.
Top executives from 3,000 top companies and corporations world-wide were invited to be
part of the campaign.
Indian Embassies around the world also became part of the global campaign.
The Department of Industrial Policy and Promotion (DIPP) constituted an eight-member
expert panel to redress grievances and handle queries of global and domestic investors
within 24 hours.
What is expected to be done in Make In India campaign?
The Union Govt. is eventually expected to take up policy reforms involving changes in laws
to ensure ease of doing business in the country. Besides interfacing with investors, team
Invest India will also work with Central and States departments to resolve policy and other
issues. Starting a business in India at present needs an entrepreneur to follow 12 procedures,
which on an average takes 27 days to complete. Similarly, enforcing contracts takes years. It
is expected that significant speed-up in these processes will be dome through Make In
India.
The position of Indias manufacturing sector at present
According to the World Bank data, Indias manufacturing sector contributed 13% to its
economic output in 2013. That is its worst record in 10 years. The manufacturing sectors
contribution to gross domestic product (GDP) is even lower than that of Pakistan and
Bangladesh. A major reason for such a pathetic situation in manufacturing sector is
significantly lower productivity. According to the Economic Survey of 2012-13, even as

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Indias share of employment in industry is at par with that of other Asian economies, its
share of value-added in industry has recently fallen. That basically means India workers have
low productivity. In countries such as China, Indonesia and South Korea, the increase in the
share of value-added products has commensurated with that of employment. The gap in
labour productivity between large and the small size groups in India is in the order of 8:1
compared with 3:1 in Japan, Korea and Taiwan.
How China responded to this challenge from India?
Seeking to retain its manufacturing prowess, Chinese government launched a Made in
China campaign on 25 September 2014 with a host of tax concessions coinciding with
Narendra Modis Make In India pitch. China will encourage high-tech imports, research
and development (R&D) to upgrade Made in China. Under the new campaign China will use
tax breaks to encourage enterprises to upgrade their equipment and increase R&D efforts to
improve the manufacturing industry. Chinas manufacturing sector, a key driver of its
economic growth, is regarded highly competitive in the global market.
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