DR.

RAM MANOHAR LOHIYA NATIONAL

LAW UNIVERSITY, LUCKNOW

2019-2020

POLITICAL SCIENCE FINAL DRAFT

Narendra Modi’s Policy: Make in India

Submitted To: Submitted By:

Dr. Monika Srivastava, Alok Rao
Assistant Professor Roll No - 190101015
Dr. Ram Manohar Lohiya National B.A. LL.B. (Hons.)
Law University, Lucknow Semester I

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 ACKNOWLEDGEMENT

I would like to take this opportunity to extend a word of gratitude to my

esteemed “Political Science” teacher Ms. Monika Srivastava, who had
been a constant source of inspiration for me in the pursuance of this
project. Ma’am has been gracious enough to guide me on the right path
which has enabled me to strengthen my efforts. Also, I would like to thank
Prof. (Dr.) C.M. Jariwala for being a source of constant support in this
effort. I may also take this opportunity to wish the reader of my project a
knowledgeable experience. The project has been made with utmost care
& with utmost finesse to see that the information mentioned is to the best
of accuracy and correctness.

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 INDEX

Narendra Modi’s vision behind Make In India………………………….4

Make In India……………………………………………………………6
Plan………………………………………………………………...……7
Vision behind Make in India………………………………………….8-9

 New Processes……………………………………………………8
 New Infrastructure………………………………………………...9
 New Sectors………………………………………………………9
 New Mindset……………………………………………………...9
Special focus on some sectors……………………………………...10-12

 Automobiles……………………………………………………...10
 Food Processing………………………………………………….10
 Chemicals………………………………………………………...11
 Construction……………………………………………………...11
Progress and Growth…………………………………………………...13
Bibliography…………………………………………………………...15

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Narendra Modi’s Vision behind Make
in India

Important features about Make in India that Narendra Modi gave in his
speech are:

 India is blessed with 3 ‘Ds’, Democracy, Demography and Demand,

to this we have added another D “Deregulation.”
 We are committed to make India an easy place to do business, want
share of manufacturing in GDP to go up to 25%. In 2015, India
contributed 12.5% to GDP.

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 Want to give our industry some friendly advice, “Do not wait, Do
not relax” there are immense opportunity in India.
 Make in India is a drive to fulfill the unmet demand of common man.
 We are looking to make changes in a greener, cleaner way. The
government will focus on renewable energy.
 FDI inflows in India have gone up by 48% since the
day BJP government came to office. At a time when global FDI has
fallen substantially, FDI inflow in December 2015 was the highest
ever in this country.

He also said that through this policy government will focus on

building physical infrastructure as well as creating a digital
network to make India a global hub for manufacturing of goods
ranging from cars to software, satellites to submarines,
pharmaceuticals to ports and paper to power. He also said a prose
defining India’s priority as “FDI” should be understood as “First
Develop India” along with “Foreign Direct Investment."

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 Make In India

Make in India is an initiative launched by the Government of India to

encourage national, as well as multi-national companies to manufacture
their products in India. It was launched by Prime Minister Narendra Modi
on 25 September 2014. India emerged, after initiation of the program in
2015, as the top destination globally for foreign direct investment (FDI),
surpassing the United States of America as well as the People's Republic
of China. In 2015, India received US$63 billion in FDI.
Make in India was launched on 25 September 2014 in a function at the
Vigyan Bhavan. On 29 December 2014, a workshop was organized by the
Department of Industrial Policy and Promotion which was attended by
PM Modi, his cabinet ministers and chief secretaries of states as well as
various industry leaders.
The major objective behind the initiative is to focus on job creation and
skill enhancement in 25 sectors of the economy. The initiative also aims
at high quality standards and minimizing the impact on the environment.
The initiative hopes to attract capital and technological investment in
India.
The campaign was designed by Wieden+Kennedy. Under the initiative,
brochures on the 25 sectors and a web portal were released. Before the
initiative was launched, foreign equity caps in various sectors had been
relaxed. The application for licenses was made available online and the
validity of licenses was increased to three years. Various other norms and
procedures were also relaxed.

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Plan
To start a movement, you need a strategy that inspires, empowers and
enables in equal measure. Make in India needed a different kind of
campaign: instead of the typical statistics-laden newspaper
advertisements, this exercise required messaging that was informative,
well-packaged and most importantly, credible. It had to (a) inspire
confidence in India’s capabilities amongst potential partners abroad, the
Indian business community and citizens at large; (b) provide a
framework for a vast amount of technical information on 25 industry
sectors; and (c) reach out to a vast local and global audience via social
media and constantly keep them updated about opportunities, reforms,
etc.
The Department of Industrial Policy & Promotion (DIPP) worked with a
group of highly specialized agencies to build brand new infrastructure,
including a dedicated help desk and a mobile-first website that packed a
wide array of information into a simple, sleek menu. Designed primarily
for mobile screens, the site’s architecture ensured that exhaustive levels
of detail are neatly tucked away so as not to overwhelm the user. 25
sector brochures were also developed: Contents included key facts and
figures, policies and initiatives and sector-specific contact details, all of
which was made available in print and on site.

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Vision behind Make in India

Prime Minister Narendra Modi launched the Make in India initiative on

September 25, 2014, with the primary goal of making India a global
manufacturing hub, by encouraging both multinational as well as
domestic companies to manufacture their products within the country.
Led by the Department of Industrial Policy and Promotion, the initiative
aims to raise the contribution of the manufacturing sector to 25% of the
Gross Domestic Product (GDP) by the year 2025 from its current 16%.
Make in India has introduced multiple new initiatives, promoting foreign
direct investment, implementing intellectual property rights and
developing the manufacturing sector.
It targets 25 sectors of the economy which range from automobile to
Information Technology (IT) & Business Process Management (BPM),
the details of each can be viewed on the official site.
It also seeks to facilitate job creation, foster innovation, enhance skill
development and protect intellectual property. The logo of ‘Make in
India’ – a lion made of gear wheels – itself reflects the integral role of
manufacturing in government’s vision and national development.

New Processes
The government is introducing several reforms to create possibilities for
getting Foreign Direct Investment (FDI) and foster business partnerships.
Some initiatives have already been undertaken to alleviate the business
environment from outdated policies and regulations. This reform is also
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aligned with parameters of World Bank's 'Ease of Doing Business' index
to improve India's ranking on it.

New Infrastructure
Infrastructure is integral to the growth of any industry. The government
intends to develop industrial corridors and build smart cities with state-
of-the-art technology and high-speed communication. Innovation and
research activities are supported by a fast-paced registration system and
improved infrastructure for Intellectual Property Rights (IPR)
registrations. Along with the development of infrastructure, the training
for the skilled workforce for the sectors is also being addressed.

New Sectors
‘Make in India’ has identified 25 sectors to promote with the detailed
information being shared through an interactive web-portal.1 The
Government has allowed 100% FDI in Railway and removed restrictions
in Construction.3 It has also recently increased the cap of FDI to 100% in
Defense and Pharmaceutical.

New Mindset
Government in India has always been a regulator and not a facilitator. This
initiative intends to change this by bringing a paradigm shift in the way
Government interacts with various industries. It will focus on acting as a

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partner in the economic development of the country alongside the
corporate sector.
Since the launch of Make in India in September 2014, FDI inflows of
USD 77 billion including a equity inflows of USD 56 billion has been
received for the period October 2014 to March 2016. This represents
about a 44% increase in FDI Equity inflows over the same corresponding
period.

‘Zero defect zero effect’ is a key phrase which has come to be associated
with the Make in India campaign. In the words of Prime Minister
Narendra Modi, “Let’s think about making our product which has 'zero
defect'… and 'zero effect' so that the manufacturing does not have an
adverse effect on our environment". Thus, sustainable development in the
country is being made possible by imposing high-quality manufacturing
standards while minimising environmental and ecological impact.

Special Focus on Some Sectors

For the Make in India campaign, the government of India has identified
some priority sectors that shall be promoted adequately. These are the
sectors where likelihood of FDI (foreign direct investment) is the highest
and investment shall be promoted by the government of India. On the
campaign launch, the Prime Minister Mr. Modi said that the development
of these sectors would ensure that the world shall readily come to Asia,
particularly to India where the availability of both democratic conditions
and manufacturing superiority made it the best destinations, especially

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when combined with the effective governance intended by his
administration.

Automobile
Sixth largest producer in the world with an average annual production of
24 million vehicles in 2016.India has the fifth largest passenger vehicle
and commercial vehicle market. Presence of four large auto
manufacturing hubs across the country: Delhi-Gurgaon-Faridabad in the
north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai-
Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east.
Contributes to 7.1 % of India's Gross Domestic Product (GDP) by volume.
Six million-plus hybrid and electric vehicles to be sold annually, by
2020.Two-wheeler production has grown from 8.5 million units annually
to 15.9 million units in the last seven years.

Food Processing
194.39 million Hectares of Gross Cropped Area in 2012-13(P)66.10
million. Hectares of Net Irrigated Area in 2012-13(P)127 agro-climactic
zones. 42 mega food parks being set up with an allocated investment of
USD 2.38 billion.

Chemicals
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Seventh largest producer of chemicals worldwide and third largest
producer in Asia. The estimated size of Indian chemicals sector stands at
approximately USD 139 billion. Fourth largest global producer of agro -
chemicals. Total production of the major chemicals including
petrochemicals was 23.9 million tons during 2015-16 while production of
polymers stood at around 9 million tons. Chemicals sector also acts as a
key enabling industry and provides support for variety of other sectors
like agriculture, construction, leather etc.

Construction
USD 1 Trillion investments for infrastructure sector projected during
2012-17USD 650 Billion investments in urban infrastructure estimated
over next 20 years.100% Foreign Direct Investment (FDI) permitted
through the automatic route for townships, cities. Construction sector
contributes towards 8% of the Indian GDP (at constant prices). Last five
year estimates (2006-07 to 2010-11).Additional Fact: increased to 3.85
lakh crore (7.9% of the total GDP) in 2010-11 from 284798 crore (8% of
the total GDP) in 2006-07.Additional Facts: Growth rate for GDP in
construction 8.1%100 Smart Cities and 500 AMRUT Cities will invite
investment of 2 Trillion Rupees in the next five years. INR 62,009 Crore.
would be invested under Swachh Bharat Mission (SBM) in urban areas.

Progress and Growth

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In a short space of time, the obsolete and obstructive frameworks of the
past have been dismantled and replaced with a transparent and user-
friendly system that is helping drive investment, foster innovation,
develop skills, protect Intellectual Property (IP) and build best-in-class
manufacturing infrastructure. The most striking indicator of progress is
the unprecedented opening up of key sectors – including Railways,
Defense, Insurance and Medical Devices – to dramatically higher levels
of Foreign Direct Investment.
A workshop titled “Make in India – Sectorial perspective & initiatives”
was conducted on 29th December 2014 under which an action plan for 1
year and 3 years has been prepared to boost investments in 25 sectors.
The ministry has engaged with the World Bank group to identify areas of
improvement in line with World Bank’s ‘doing business’ methodology.
A 2-day workshop and several follow up meetings were held to formulate
framework which could boost India’s ranking which is currently 130 in
terms of Ease of doing business.
An Investor Facilitation Cell (IFC) dedicated for the Make in India
campaign was formed in September 2014 with an objective to assist
investors in seeking regulatory approvals, hand-holding services through
the pre-investment phase, execution and after-care support.
The Indian embassies and consulates have also been communicated to
disseminate information on the potential for investment in the identified
sectors. DIPP has set up a special management team to facilitate and fast
track investment proposals from Japan, the team known as ‘Japan Plus’
has been operationalized w.e.f October 2014. Similarly, 'Korea Plus',
launched in June 2016, facilitates fast track investment proposals from
South Korea and offers holistic support to Korean companies wishing to
enter the Indian market.

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Various sectors have been opened for investments like Defense, Railways,
Space, etc. Also, the regulatory policies have been relaxed to facilitate
investments and ease of doing business.
Six industrial corridors are being developed across various regions of the
country. Industrial Cities will also come up along these corridors.
Today, India’s credibility is stronger than ever. There is visible
momentum, energy and optimism. Make in India is opening investment
doors. Multiple enterprises are adopting its mantra. The world’s largest
democracy is well on its way to becoming the world’s most powerful
economy.

Bibliography

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1. http://www.makeinindia.com/about
2. http://www.makeinindia.com/article/-/v/make-in-india-
reason-vision-for-the-initiative
3. https://en.wikipedia.org/wiki/Make_in_India
4. http://www.makeinindia.com/sectors

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