A new development scheme that has been launched by Prime Minister Narendra Modi in 2014 is the ‘Make in India’ Mission. It is a sort of Swadeshi movement that was originated on 25 September 2014 by the GoI to support the domestic manufacturing sector in India as well as augment investment. The complete details about the Make in India Scheme right from the objectives, schemes & initiatives under it, 25 focus sectors, advantages, challenges, & progress are discussed here elaborately for students who are preparing for the govt exams like UPSC, SSC, etc.
Go through this article and gain whole knowledge on Make in India Policy, Schemes, Benefits, etc. Also, you can learn more topics on Current GK like Indian Polity by going through this General Knowledge Article.
This Blog Contains:
- Make in India Scheme – Overview
- Make in India Logo
- List of 25 Sectors Focus in Make in India
- Full Status of Individual Sectors under Make in India scheme
- Schemes Under Make in India Mission
- Make in India – Benefits
- Progress of the Scheme
- FAQs related to Make in India UPSC
Make in India project has recognized 25 sectors that involve automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing, and much more. Furthermore, the highlights of this scheme are specified in the below table:
|Name of the scheme||Make in India|
|Date of launching||25th September 2014|
|Launched by||PM Narendra Modi|
|Government Ministry||Ministry of Commerce and Industry|
|Make in India website||www.makeinindia.com|
GoI aimed so many targets to be done successfully under the Make in India mission. A few of the objectives are listed out below:
- A rise in the domestic value addition and technological depth in the manufacturing sector.
- Raise in manufacturing sector growth to 12-14% per year.
- Increase in the manufacturing sector’s share in the GDP to 25% by 2022.
- Create 100 million extra jobs in the manufacturing sector by 2022.
- Expanding the global competitiveness of the Indian manufacturing sector.
- Creating required skill sets among the urban poor and the rural migrants to foster inclusive growth.
- Having environmentally sustainable growth.
Lion is the logo of Make in India. You will observe the lion’s silhouette filled with cogs which signifies manufacturing, national pride, and strength.
Students who are preparing for the UPSC or other govt exams must aware of all 25 sectors of the Make in India scheme. If you visit the website, it lists the 25 focus sectors with complete details about the sectors along with other related government schemes, including the FDI policies, IPR, etc. The primary 25 sectors covered under this Make in India campaign are tabulated below:
|9.||Electronic system design and manufacturing|
|11.||IT and BPM|
|13.||Media and entertainment|
|15.||Oil and gas|
|20.||Roads and highways|
|24.||Tourism & Hospitality|
|Name of the Sector||About the sector||Incentives offered/Programs Launched||Progress so far (Based on latest reports)|
|Automobile and Automobile Components||India is the largest manufacturer of two-wheelers,three-wheelers, and tractors in the world. India has a competitive cost advantage over its counterparts. We also have a pool of masterminds who are serving worldwide as a strong workforce||1. Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) and National Electric Mobility Mission Plan 2020 (NEMMP) has been launched to promote electric cars.
2. National Automotive Testing and R&D Infrastructure Project (NATRIP) centres are set up
3. 100% FDI under automatic route subject to all applicable regulations and law is available
|The top players have inaugurated manufacturing units namely: 1. ISUZU motors in Sri City Andhra Pradesh 2. Tata Motors & Fiat jointly have opened up in Ranjangaon, Pune 3. Suzuki Motors in Ahmedabad 4. Mercedes Benz In Chakan|
|Rise in Automobile||Percentage|
|Rise in Automobile Components||Percentage|
|Aviation||The aviation sector is expected to take a boom when we land in 2020. India currently occupies 9th position in the world and is soon expected to reach the skies||1. Ude Desh ka Aam Nagrik (UDAN) was introduced for regional connectivity
2. Incentives in the form of tax concessions are provided
3. National civil aviation policy 2016 was announced for establishing an integrated ecosystem, to encourage tourism and increase employment
4. Airports are being developed under the public-private partnership mode to encourage private participation
5. GPS Aided Geo Augmented Navigation system (GAGAN) to support direct air routes, reduce fuel consumption and improve safety is initiated
|1. The passengers carried by scheduled domestic airlines have increased by 29%
2. Common User Domestic Cargo Terminals have been operationalized in 13 cities so as to facilitate everything related to cargo services under one roof.
|BioTechnology||The biotechnology industry is an industry where India has grown in leaps and bounds. The industry owes its success to the R&D activities and growing government initiatives||1. FDI Policy 100% FDI dor Greenfield Pharma via the automatic route 100% FDI for Brownfield Pharma. Here, in case of FDI up to 74% automatic route is available and beyond 74% government route has to be taken 100% FDI for medical devices via the automatic route
2. Biotechnology Industry Research Assistance Council (BIRAC) was set up to assist the industry through funding, mentoring, handholding, and infrastructure support
|1. Current Good Manufacturing Practices (CGMP) a plant was inaugurated in 2016 for the manufacture of Phytopharmaceuticals
2. A virtual centre was launched across five Indian Institutes of Technology, in 2015, to develop and advance technologies in the area of biofuels
3. 30 Bio-incubators and Biotech Parks were supported/established from April 2014 to September 2016
4. First indigenously developed and manufactured rotavirus vaccine ‘Rotavac’ was launched in 2015
|Chemicals and Petrochemicals||The Chemicals industry serves as a backbone to many other industries which makes it a lucrative option. Factors like raw material availability and innovation provide an incentive to the companies to get rolling||1. The Assam Gas Cracker project is one of the biggest projects which is expected to produce about 2.8 lakh MT polymers per annum and also expected to provide employment to 100000 people indirectly
2. A scheme is developed to set up need-based plastic parks with good infrastructure facilities with financial assistance up to 50% of the project cost
|1. The FDI equity inflows in the sector increased by 107% 2. 0.44 Million MT Per Annum Polypropylene Plant is commissioned at Mangalore|
|Construction||The demand for real estate and infrastructure projects has been on an uphill over the years. The identification of smart cities has been a smart move that intends to utilize the resources in the best possible manner||1. A city challenge competition was held under the 100 smart cities missions with an intention to achieve infrastructure development
2. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a mission that concentrates on providing basic infrastructure facilities
3. Swachh Bharat mission established to promote healthy sanitation practices
4. Heritage City Development and Augmentation Yojana (HRIDAY) focuses on revitalizing the Indian Heritage sites
5. The Real Estate (Regulation & Development) Act, 2016 has been the shining star of this sector
|1. 1.7 million houses have been constructed under Pradhan Mantri Awas Yojana (Gramin) houses
2. The construction sector is the industry that stands 2nd in line in terms of providing employment, after agriculture. A whopping 35 million people have been employed
|Defence||India has opened its doors of the defence sector to privatisation which was a very essential step to leverage the domestic markets and meet the defence needs||1. The opening up of the defence sector to the private sector is paving the way for strategic partnerships
2. 100% FDI i. Upto 49% automatic route ii. Above 49% government route
3. A ‘Make in India’ portal for Defence Production (www.makeinindiadefence.com) has been launched Which provides policy and procedural issues which are of importance for the defence manufacturing industry
|1. Various products manufactured in India like HAL Tejas Light combat aircraft by sourcing 95% of the resources required locally
2. Defence equipment amounting to INR 2059.18 Crore have been exported to 28 countries in FY 2015-16
|Electrical Machinery||In the electrical machinery sector, Indian manufacturers are at their peak of competitiveness with regards to product design, manufacturing & testing facilities. A big chunk of investments are made in research and development which will help India accelerate its manufacture||1. Incentives for capacity addition in power generation will serve as a means to increase the demand for electrical machinery
2. 100% FDI is allowed in the automatic route subject to rules and regulations
|1. This industry recorded a double-digit growth rate of 12.8% over 2017-18
2. India has turned around from a net importer of electricity to a net exporter of electricity
|Electronic Systems||An electronic system is an area where the focus has been on import substitution. India being a labour rich country has a forte that needs to be taken advantage of.||1. The Modified SIPS scheme has been developed in order to attract investment into this sector
2. Export incentives 2-3% are made available under the Merchandise export from India scheme
3. The export promotion capital goods scheme offers zero customs duty for import of capital goods used for pre-production, production and post production
|1. Around 38 mobile manufacturing units have been set up which have created employment of about 38300
2. Under Digital Saksharta Abhiyan(DISHA)around 99.56 lakh candidates have been enrolled for training
3. In 2017 this industry witnesses a remarkable jump of 27% where in the total volume reached 1.57 Lakh Crore from 1.43 Lakh Crore in 2016
|Food Processing||India is in a position to provide hygienic food processed and packed by utilization of modern technology. Nivesh Bandhu is a platform that provides a one-stop solution to investors in the area of food processing, aiding them in decision making and providing incentives||1. Reserve Bank of India has classified loan to food & agro-based processing units and Cold Chain under agriculture activities for Priority Sector Lending (PSL) subject to the aggregate sanctioned limit of USD 15.38 million per borrower which will ensure a good flow of credit to the entrepreneurs
2. A special fund called Food Processing Fund amounting to USD 300 million has been deposited with the NABARD in order to provide funds to designated food parks and individual food processing units in the designated food parks
3. Reduction of excise duty and customs duty has been a fiscal incentive that helps boost up the industry
|1. The growth rate of Gross Value Added has increased from 1.91% in 2013-14 to 5.78% in 2014-15 at constant prices
2. There has been an FDI equity inflow of USD 1.7 Billion from April 2014 to December 2016
3. 88 cold chain projects have been operationalized out of the 134 projects which had been sanctioned
4. The government had sanctioned 42 mega food parks of which 8 have been operationalized. Every mega food park is set to create employment opportunities for about 5000-6000 people and benefit 25000-30000 farmers
|IT and BPM||IT + IT= IT Indian Talent + Information technology = India Tomorrow. The Information technology sector contributes a countable share to the exports. This industry is the largest private sector employer providing millions of job opportunities||1. Favourable government policies and initiatives serve as an incentive to invest in this sector
2. The Digital India campaign has pumped in a lot of investment with digital delivery standing as a focus point
|1. Total FDI equity inflow in the Computer software and hardware sector saw a major growth from 2.3 Billion to 5.9 Billion|
|Leather||The leather industry is striving to succeed with 55% of its workforce below 35 years of age. The demand for leather products is on the rise and the concept of utilising young labour with oozing energy is helping this sector flourish||1. The leather product sector is entirely de-licensed which serves as an icing on the cake
2. Grants are provided in the following manner i. 30%-on cost of plant & machinery to Micro and Small Units ii. 20%-To other units iii. 50%-for establishment of Mega Leather Clusters iv. 50% for upgradation/installation of Common Effluent Treatment plants
|1. The FDI equity inflow amounted to USD 53.39 Million in this sector
2. India boasts of being the 2nd largest producer of footwear and also the 2nd largest exporter of leather garments
3. Under the Indian leather development programme, primary skill development training has been imparted to 117499 and 80% of these have been placed as on January 2017
|Media & Entertainment||Despite all the criticism against television, India has the 2nd largest TV Market in the world. Growth in the number of multiplexes, increased liberalisation, and tariff relaxation serve as incentives to start exploring this industry||1. In order to give a lift to the exports, treaties have been signed with countries like Italy, Brazil, the UK, and Germany
2. Basic Custom duty for digital still image video camera has been brought down to Zero
3. National Film Heritage Mission has been introduced to archive films through the National Film Archive of India
|1. Growth in FDI in the information and broadcasting area from USD 1.9 Billion (2010-14) to USD 3.4 (2014-18)Billion which is a good 1.8 times within a span of 8 years
2. 283 billion to 263 Billion, a 20 billion leap is the growth recorded by the print industry
3. The 24*7 DD Kisan channel saw a huge response with a total viewership of 1.52 Crores within a very short span of 7 months
|Mining||Mining is the crux of the Indian economy. Many industries depend on it to procure their raw materials.||1. The Mines and Minerals Development and Regulation Act 1957 (MMDR) had been amended with greater transparency as its motive
2. District Mineral Foundation set up for grievance redressal and also to improve the image of mining
|1. In terms of Gross Value Added this sector has grown by 10.5% in 2016-17 and 12.5% in 2017-18
2. While the world market is shaky due to the Chinese economic issues, India has experienced a surge in the production of minerals
3. By November 2016 17 mineral blocks across 7 states have been auctioned which has resulted in additional revenues amounting to INR 47551 Crores and total revenues of INR 59639 Crores
|Oil and Gas||The mushrooming population and the flourishing economy of India have helped the Oil and Gas Industry in a mighty big way. Many opportunities exist for the development of underground coal, its gasification, and conversion to liquids||1. Hydrocarbon Exploration & Licensing Policy (HELP) provides for a uniform licensing system, no awaiting a formal bid round and incentives on royalty rates for offshore blocks
2. An additional depreciation of 15% on installation of capital equipment acquired is permitted
|1. In Gujarat India has invested in refineries especially for exports which have made India a net exporter of petroleum while we are a net importer of crude oil
2. Refining capacity of India has been expanded by 15 Million Metric Tonnes Per Annum due to the commissioning of Paradip Refinery In February 2016
3. Crude Oil Strategic storage of 5.33 MMT capacity was built at Visakhapatnam, Mangalore, and Padur
|Pharmaceuticals||Medical Tourism is moving uphill due to the expertise India possesses in this space. India’s cost of production is considerably lower than USA and half of the cost in Europe||1. In order to make healthcare more reachable new Health and Wellness centres have been established
2. The National Pharmaceutical Pricing Policy 2012 mainly focuses on the regulation of the price of drugs
|1. The pharmaceutical industry has seen an upturn from INR 158671 Crore in 2013-14 to INR 177734 Crore in 2014-15 to INR 204627 Crore in 2015-16
2. Indian Drugs and Pharmaceuticals Limited has enabled the mass manufacture of products in the field of Oncology, Nephrology and Cardiology
3. Pharma Jan Samadhan, a customer grievance redressal system launched in March 2015
4. Pharma Sahi Dham provides real-time information on prices of medicines
|Ports and shipping||India has 12 major ports and 64 minor ports handling the Import Export Cargo. In order to attract investment, the Government has allowed 100% FDI in the shipping sector||1. New Berthing Policy for Dry Bulk Cargo for all major ports was introduced to facilitate movement of higher cargo throughput from major ports
2. Funds amounting to USD 25 Million for major ports and USD 21 million for minor ports have been earmarked
|1. A giant leap was seen in FDI from USD 0.5 Million (2010-14) to USD 2.5 Billion (2014-18)
2. Turnaround time at ports reduced by 25% (2012-13 vs 2015-16)
3. Under the Sagarmala project, a total of 173 projects with an investment of INR 4 Lakh Crore introduced during 2016-17
|Railways||India stands tall with a ranking of World No 3 in terms of the railway network spanning more than 66030 Kms. 100% FDI provides an opportunity for high-speed railways and electrification. Automatic Ticket Vending Machines and computerized passenger reservation systems aim at passenger convenience||1. Public Private Partnership mode to enhance passenger amenities
2. Project Swarn targets on improving passenger experience and in order to facilitate this 14 Rajdhanis and 15 Shatabdi trains are identified
3. Mission Raftaar has at its core the doubling of the average speed of freight trains and also increasing the speed of all non-suburban trains
|1. A noteworthy achievement in the year 2017-18 is 51 trains have been speeded up by more than an hour
2. The Gatimaan Express is the fastest train in India which covers a distance of 188 Kms in 1 hour and 40 mins
3. In order to set up an electric locomotive factory at Madhepura India has joined hands with M/s Alstom Manufacturing India and for setting up a diesel locomotive factory with GE Global Sourcing India Pvt Ltd at Marhowra amounting to a total of INR 40000 Crores
|Renewable Energy||There has been an ever-increasing demand for energy in the country and it is imperative to use renewable sources of energy. Reducing India’s dependence on expensive imported fossil fuels is the goal in this sector||1. A bouquet of fiscal incentives has been provided which include: i. Enhanced Depreciation ii. Concessional Custom duty iii. Excise duty exemption iv. Income tax holidays for 10 years
2. In order to encourage usage of renewable energy sources clean environment cess has been doubled from INR 200 per tonne to INR 400 per tonne.
3. To promote clean energy co-operation a joint Indo-US PACE Setter fund has been established with a contribution of USD 4 Million
|1. The world’s largest solar power plant was commissioned in Tamil Nadu with a huge capacity of 648 MW
2. 140% increase in the solar power capacity (2014-16 vs 2012-14)
3. 34 Solar parks have been sanctioned to 21 states and INR 356.63 Crores has been provided to Solar Energy Corporation of India for the same
|Roads and Highways||The government is taking a major step in upgrading highways and expressways. The government is encouraging the development of this sector by providing subsidies, tax exemptions, and duty-free imports of high capacity and modern, road construction equipment||1. The government takes the burden of cost on a project feasibility study, shifting of utilities, environment clearance, etc
2. Subsidy of up to 40% of the project cost is provided as an incentive
3. The Ministry of Road Transport and Highways(MoRTH) has provided funds to the state government to develop state roads
|1. Achievement for the year 2017-18 are 8088 km of road length awarded,7589 km of construction completed and 2156 km of highways tolled
2. The length of the national highways has seen substantial growth from 91287 km in 2014 to 115435 km in 2017
3. After the introduction of Electronic Toll Collection System the fee collected has increased from USD 27 million in Jan 2017 to USD 43 Million in Nov 2017
|Space||India has skyrocketed its way into the space sector literally and even metaphorically. Our country’s cost-effective programme has made it a launchpad for many countries and is hopeful of calling itself as the world’s launchpad||1. GSLV III launched for satellites which are heavier in nature weighing about 4500 to 500 kg
2. ISRO has entered into co-operative arrangements with 33 countries and 3 multinational bodies
|1. Antrix Corporation Limited has undertaken various initiatives for marketing of space products and services at a global level
2. India is the first nation in the world to reach Mars successfully in the 1st attempt. The spacecraft was called Mangalyaan
|Textiles and Garments||Textile and Garment sector has made India a one-stop solution for textile and garment needs. Being one of the largest producers in the world and the second-largest exporter of cotton in the world, this scheme has made India world famous. Women empowerment is seen in the right sense here as 70% of its workforce consists of women||1. The Merchandise Exports from India Scheme served as an incentive by providing duty rewards to the extent of 2-5% of FOB value
2. To reduce the burden on Indian investors, an interest equalization scheme was introduced
3. Special Textile Packages have been approved with a view to creating jobs, encourage exports, and also to draw in investments
|1. The total exports took a leap from 13% to 15% (2013-14 vs 2015-16)
2. There has been a substantial growth in FDI of 2.5 times (2010-14 vs 2014-18)
3. The existing textile park has seen the entry of new production units totalling to 200 in number in the recent past creating jobs for 11000 persons
|Thermal Power||The thermal power industry has various incentives which ensure adequate return on investment to companies. Expansion in industrial activity and growing population are factors that will encourage companies||1. The revised tariff policy 2016 guarantees a good return on investment and ensures the safety of the investments to the investors
2. The Ultra Mega Power Projects having a huge capacity of 4000 MW have been set up by the government of India in order to bear the fruits of economies of scale and fast capacity addition
|1. India boasts of having the fifth largest installed capacity in the world
2. The electricity generation increased by 5.9%(2016-17 vs 2015-16)
3. April 2014 to October 2016 has witnessed an addition of 50471.41MW to the generation capacity.
4. 98.8% of the villages have been electrified
|Tourism and hospitality||Tourism and hospitality is the lifeblood of an economy. Tourism is the third-largest foreign exchange earner next in line after gems and readymade garments in India. Private-public partnerships will be the focus for India to see this Industry makes its mark in the future||1. Swadesh Darshan scheme had been launched to serve mass and niche tourism
2. The National Mission for Pilgrimage Rejuvenation and Spiritual Augmentation Drive had the beautification of pilgrimage sites as its focus
3. The e-tourist visa facility has been extended to travellers of 150 countries
|1. India crawled up 13 places from 65 to 52 as per the Travel and Tourism Competitiveness Index 2015 of the World Economic Forum
2. Foreign Exchange Earnings have increased from INR 1351 Billion(FY 2015-16) to INR 1556 Billion
3. This sector is among the top 10 sectors when it comes to the FDI inflow.The FDI inflow has increased by 72% (2015-16 vs 2014-15)
|Wellness||The demand for AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha) has seen an upsurge over the years. The adverse effects of other drugs and its high cost has caused this turnaround and this is here to stay||1. 100% FDI is permitted in the AYUSH sector
2. Central Sector Scheme for promotion of International Cooperation has as its aim the creation of awareness about the strength and utility of AYUSH and its promotion at the international platform
3. The government of India has set up the AYUSH Sector Innovation Council
|1. India stands as the second largest exporter of AYUSH and herbal products
2. This industry has a huge potential to create jobs to the level of 3 million jobs
Indian government launched many schemes to support the Make in India programme. The list of Make in India Schemes are given here below:
- Skill India
- Digital India
- Smart Cities
- Startup India
- Swachh Bharat Abhiyan
- Pradhan Mantri Jan Dhan Yojana (PMJDY)
- International Solar Alliance (ISA)
The main aspect of starting this programme of Make in India is to develop the country and help the people in various fields. The Make in India Campaign Advantages are discussed here for a better understanding of the scheme:
- Creating employment openings.
- When FDI inflows grow more, the rupee will be increased.
- Small manufacturers will get a thrust, especially when investors from overseas invest in them.
- Building manufacturing centers and factories in rural areas will foster the development of these areas as well.
- When other countries invest in India, they will also bring with them the latest & trending technologies in different fields.
- Raising the GDP by expanding economic growth.
- Because of different actions were taken under the Mission, India has moved up the ranks in the EoDB index.
Various milestones have been awarded to the Make in India scheme. A few of the famous ones are enlisted below:
- India is ranked four in the world in the context of its capacity to harness power from winds and ranked number 6 in the world in harnessing solar power. Overall, India is ranked fifth in the world in installed renewable energy capacity.
- The introduction of the Goods and Services Tax (GST) has eased the tax procedural system for businesses. The GST has been a fillip to the Make in India campaign.
- Because of schemes of financial inclusion such as the PMJDY, as of May 2019, 356 million new bank accounts were opened.
- Digitization in the country has become more prominent. Taxation, company incorporation, and various other processes have been done online relief the total process and upgrading efficiency. This has ramped up India’s rank in the EoDB index.
- The new insolvency code namely, the Insolvency and Bankruptcy Code 2016 integrated all laws and rules relating to insolvency into a single legislation. This has taken the bankruptcy code of India on par with global standards.
- BharatNet – this is a telecom infrastructure provider initiated by the Government of India to improve digital networks in the rural areas of the country. This is perhaps the world’s largest rural broadband project.
- FDI liberalization has assisted India’s EoDB index to be favourable. Larger FDI inflows will generate jobs, income, and investments.
- Infrastructure and connectivity have received major push through schemes such as Bharatmala and Sagarmala, and also various railway infrastructure development schemes.
1. What is the main goal of Make in India?
The primary goal of this Make in India campaign is to develop India a global manufacturing hub.
2. What is the current status of make in India?
As per the objectives, the Make in India project has gained some of its achievements, yet it has been believed a complete failure while reaching 2019-2020 year. The involved achievements are the improvement in FDP in the sectors like Aviation, Chemicals, and Petrochemicals.
3. What are the four pillars of Make in India?
This ‘Make in India’ campaign has been launched by Shri. Narendra Modi Ji, to facilitate investment, foster innovation, improve skill development, safeguard intellectual property & construct best-in-class manufacturing infrastructure.
4. What are the Challenges of Make in India?
The list of challenges of Make in India campaign are given below:
- Creating labor-intensive technology,
- Skills development and up-gradation,
- Creating a healthy environment for business,
- Lack of research and development,
- increasing the competitiveness of goods manufactured in India, etc.