The “Make in India” initiative, which marked its 10th anniversary in September 2024, which led to overseas increase in inflows of FDI by 119% compared to 2004-2014.
Key Highlights of the Decade
- Foreign Direct Investment (FDI):
- India attracted cumulative FDI inflows of USD 667.4 billion from 2014 to 2024, a 119% increase from the previous decade.
- The manufacturing sector alone saw a 69% rise in FDI equity inflows, amounting to USD 165.1 billion.
- Production Linked Incentive (PLI) Scheme:
- Since its introduction in 2020, PLI has garnered ₹1.32 lakh crore in investments, driving manufacturing output of ₹10.90 lakh crore and creating 8.5 lakh jobs.
- Exports & Employment:
- Merchandise exports exceeded USD 437 billion in FY 2023-24.
- Manufacturing employment grew from 57 million in 2017-18 to 64.4 million in 2022-23.
- Ease of Doing Business:
- India’s rank improved from 142nd in 2014 to 63rd in 2019.
- Over 42,000 compliances have been reduced, and the Jan Vishwas Act of 2023 decriminalised 183 provisions across various laws to further simplify business operations.
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About Make in India
- Launched in 2014 under Prime Minister Narendra Modi’s leadership.
- Aim:
- To facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class manufacturing infrastructure.
- To transform India into a global hub for design and manufacturing.
- Vocal for Local:
- Seen as an important ‘Vocal for Local’ initiative, its objective is to
- To boost India’s manufacturing capabilities and
- To showcase its industrial potential globally
- Four Pillars of “Make in India” initiative:
- New Processes: To enhance the business environment, promote entrepreneurship and startups – ‘ease of doing business’ became a crucial factor.
- New Infrastructure: Development of industrial corridors, smart cities, integrating state-of-the-art technology and high-speed communication to create world-class infrastructure, improving intellectual property rights (IPR) infrastructure etc.
- New Sectors: Opening of Foreign Direct Investment (FDI) in sectors like Defence Production, Insurance, Medical Devices, Construction, and Railway infrastructure.
- New Mindset: The government embraced a role as a facilitator rather than a regulator.
- Semiconductor Ecosystem: The ₹76,000 crore Semicon India Program supports semiconductor and display manufacturing, boosting technological growth.
- National Single Window System (NSWS): Introduced in 2021, NSWS streamlines approvals across multiple ministries and states, facilitating investment and business setup.
- PM Gatishakti & National Logistics Policy: These initiatives focus on improving infrastructure and logistics efficiency, making Indian products globally competitive.
- Industrial Corridors & Infrastructure Development: Significant investments have been made to enhance industrial infrastructure, with 11 corridors approved and ₹28,602 crore allocated for new projects.
- Focus on Startups and Innovation: The Startup India initiative, launched in 2016, has nurtured over 1,40,803 recognized startups, creating 15.5 lakh direct jobs.
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As India looks ahead with “Make in India 2.0”, the focus will shift towards sustainability, renewable energy, and advanced manufacturing, ensuring global competitiveness and self-reliance for the future.
September 26, 2024
