Make in India

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Make in India
Make In India.png
Country India
Prime Minister(s) Narendra Modi
Key people Ministry of Finance
Launched 25 September 2014; 3 years ago (2014-09-25)
Status Active
Website http://www.makeinindia.com
Emblem of India.svg
This article is part of a series on the
politics and government of
India

Make in India, a type of Swadeshi movement covering 25 sectors of the economy,[1] was launched by the Government of India on 25 September 2014 to encourage companies to manufacture their products in India and also increase their investment. As per the current policy, 100% Foreign Direct Investment (FDI) is permitted in all 25 sectors, except for space (74%), defence (49%) and news media (26%).[2][3] Japan and India had also announced a US$12 billion "Japan-India Make-in-India Special Finance Facility" fund to push investment.[4]

After the launch, India received investment commitments worth 16.40 lakh crore (US$230 billion) and investment inquiries worth 1.5 lakh crore (US$21 billion) between September 2014 to February 2016.[5][6][7] As a result, India emerged as the top destination globally in 2015 for foreign direct investment (FDI), surpassing the USA and China, with US$60.1 billion FDI.[8] Several states launched their own Make in India initiatives, such as Vibrant Gujarat, "Happening Haryana" and "Magnetic Maharashtra".[9] India received US $60 billion FDI in FY 2016-17.[10]

Combined with other initiatives by the end of 2017, India rose 42 places on Ease of doing business index, 32 places World Economic Forum’s Global Competitiveness Index, and 19 notches in the Logistics Performance Index.[10]

This initiative converges, synergises and enables other important Government of India schemes, such as Bharatmala, Sagarmala, Dedicated Freight Corridors, Industrial corridors, UDAN-RCS, Bharat Broadband Network, Digital India.

The "Make In India" initiative[edit]

Make in India was launched on 25 September 2014[11] with the objective of job creation and skill enhancement in 25 sectors of the economy,[1] and "to transform India into a global design and manufacturing hub".[12]

Ease of Doing Business[edit]

India jumped to 100th place out of 190 countries in the World Bank's 2017 Ease of Doing Business Index, from 130th in 2016.[13] In February 2017, the government appointed the United Nations Development Programme (UNDP) and the National Productivity Council "to sensitise actual users and get their feedback on various reform measures".[14] As a result, now there is competition among the states of India to improve their current ranking on the ease of doing business index based on the completion percentage scores on 98-point action plan for business reform under make in India initiative.[15][16][17][18][19][20] Currently Telangana, Haryana, Odisha, Chhattisgarh and West Bengal (44.35%) are top five states (c. Feb 2018).[21]

Ongoing global campaign[edit]

The campaign was designed by Wieden+Kennedy,[22] with the launch of a web portal and release of a brochures on the 25 sectors, after foreign equity caps, norms and procedures in various sectors were relaxed, including application of manufacturing application made available online and the validity of licenses was increased to three years.[23]

"Zero Defect Zero Effect" slogan was coined by Prime Minister of India, Narendra Modi, to emphasize on the production mechanism that produces products with no defects with no adverse environmental and ecological effects.[24][25]

"Make in India Week" multi-sectoral industrial event at the MMRDA from 13 February 2016 was attended by 2500+ international and 8000+ domestic, foreign government delegations from 68 countries and business teams from 72 countries and 17 Indian states also held expos. Event received over 15.2 lakh crore (US$210 billion) worth of investment commitments and investment inquiries worth 1.5 lakh crore (US$21 billion), where Maharashtra led with 8 lakh crore (US$110 billion) of investments.[5][6] Previously between September 2014 and November 2015, the government received 1.20 lakh crore (US$17 billion) worth of proposals from companies interested in manufacturing electronics in India,[7]

Sectors covered[edit]

Make in India focuses on the following 25 sectors of the economy:

Automobiles[edit]

General Motors announced an investment of US$1 billion to manufacture automobiles in Maharashtra.[26]

In April 2017, Kia announced that the company would invest over $1.1 billion to build a car manufacturing plant in Anantapur, Andhra Pradesh. The facility is the company's first manufacturing plant in India. Kia stated that it would hire 3,000 employees for the plant, and it would produce 300,000 cars annually. Construction of the plant began in mid-2017, and is expected to be completed by March 2019. The first vehicles are scheduled to roll off production lines in mid-2019. Kia president Han-Woo Park announced that the first model produced at the plant would be an SUV(sport utility vehicle) specifically designed for the Indian market.[27][28] Park also added that Kia would invest over $2 billion and create 10,000 jobs in India by 2021.[29][30]

In March 2016, B.K Modi group announced that it is going to set up an electric bus manufacturing plant near Moradabad, Uttar Pradesh. The investment is through a technological tie-up with BYD.

In July 2017, SAIC Motor announced that it is going to invest ₹2,000 crore ($300 million) to build a car manufacturing plant in Halol, Gujarat.[31]

In Mid-2017, European automobile major PSA announced that in a partnership with CK Birla Group, it is going to build a car manufacturing plant in Tamil Nadu at the cost of ₹7,000 crore($1.03 billion)[32]

Automobile components[edit]

Hitachi announced an auto-component plant in Chennai by 2016 with an increase in their India employees count from 10,000 to 13,000.[33]

Aviation[edit]

French drone manufacturer LH Aviation announced a manufacturing plant in India to produce drones.[34]

During Magnetic Maharashtra: Convergence 2018 , Thurst Aircraft Pvt Ltd signed a MOU with Govt. of Maharashtra to built an aeroplane manufacturing plant near Palghar district(roughly 140 km north of Mumbai) with an investment of ₹35,000 crore($5.2 billion).[35]

Biotechnology[edit]

Chemicals[edit]

Construction[edit]

In January 2016, Chinese conglomerate Dalian Wanda Group announced that it would construct an industrial, residential and tourism city in Haryana at the cost of ₹68,000 crore ($10 billion).[36] However the project was deadlocked as on 28 April 2017 because the company management was resisting a demand by the Haryana state government for a 26% equity share.[37]

Defence manufacturing[edit]

India and Russia have deepened their Make in India defence manufacturing cooperation by signing agreements for the construction of naval frigates, KA-226T twin-engine utility helicopters (joint venture (JV) to make 60 in Russia and 140 in India), Brahmos cruise missile (JV with 50.5% India and 49.5% Russia).[38] A defence deal was signed during Prime Minister Narendra Modi's visit to Russia in December 2015 which will see the Kamov Ka-226 multi-role helicopter being built in India, was widely seen as the first defence deal to be actually signed under the Make in India campaign.[39][40] In August 2015, Hindustan Aeronautics Limited (HAL) began talks with Russia's Irkut Corp to transfer technology of 332 components of the Sukhoi Su-30MKI fighter aircraft under the Make in India program. These components, also called line replacement units (LRUs) refer to both critical and non-critical components and fall into four major heads such as Radio and Radar; Electrical & Electronics System; Mechanical System and Instrument System.[41]

Lockheed Martin announced in February 2016 its plans to manufacture F-16 in India, although it did not announce any time frame.[42] In February 2017, Lockheed stated that it intended to manufacture the F-16 Block-70 aircraft with a local partner in India, if the Indian Air Force agreed to purchase the aircraft.[43]

Boeing announced setting up a factory to assemble fighter planes, either the Apache or Chinook defence helicopter in India,[44] as well as the manufacture of F/A-18 Super Hornet.[45]

Prime minister Narendra Modi launches Make in India.

In May 2018, the Indian Army announced a 50,000 crore (US$7.0 billion) ammunition production project to be implemented in phases over a 10-year period. Under the project, 11 private firms will manufacture and supply ammunition for the Army's tanks, rockets, air defence system, artillery guns, infantry combat vehicles, grenade launchers and other field weapons. The Army noted that the objectives of the program were to cut dependence on foreign imports and to establish an inventory of ammunition that would sufficient to fight a 30-day war.[46]

Defence exports[edit]

India confirmed that it will upgrade Myanmar's T-72 tanks, supply DRDO's radars to Armenia, Kamov 226 T multi-utility helicopters to Jordan, indigenously developed lightweight torpedoes to Myanmar (previously sold to Sri Lanka and Vietnam), Astra 70-kilometer range air- to-air missile and 40,000 pieces of a component used in Bofors artillery guns for Rs 322 crore to UAE, and manufacture DRDO weapons in Saudi Arabia by 2018 (Dec 2017 update).[47][48]

Electronic systems[edit]

With the demand for electronic hardware expected to rise rapidly to US$400 billion by 2020, India has the potential to become an electronic manufacturing hub and government is targeting to achieve net zero imports of electronics by 2020.[49] After the launch of this project, 24.8% of smartphones sold in India in the April–June quarter of 2015 were made in India, up from 19.9% the previous quarter.[50][51][52]

Various companies pledged investment in India to begin manufacturing

  • Foxconn: US$5 billion investment over 5 years in research and development and hi-tech semiconductor manufacturing facility in Maharashtra.[53][54]
  • Huawei: new research and development (R&D) campus in Bengaluru with an investment of US$170 million[55][56] and telecom hardware manufacturing plant in Chennai.[57]
  • Lenovo: manufacturing of Motorola at Sriperumbudur near Chennai run by Flextronics.[58][59]
  • Micromax: 3 new manufacturing units in Rajasthan, Telangana and Andhra Pradesh with 3 billion (US$42 million) investment).[60][61]
  • Qualcomm: "Design in India" programme to mentor ten Indian hardware companies with the potential to come up with innovative solutions and help them reach global scale.[62]
  • Samsung: 10 "MSME-Samsung Technical Schools"[63] and manufacturing of Samsung Z1 in its plant in Noida).[64]
  • Spice Group: 5 billion (US$70 million) mobile phone manufacturing unit in Uttar Pradesh.[65]
  • Vivo Mobile India began manufacturing smartphones at a plant in Greater Noida with 2,200 employs.[66]
  • Wistron: Taiwanese company to start manufacturing of Blackberry, HTC and Motorola devices at a new factory in Noida.[67]
  • Xiaomi: smartphones to be manufactured at a Foxconn-run facility in Sri City made operational by producing Xiaomi Redmi 2 Prime.[68][69][70]
  • HMD Global: Finnish company announced in early 2018 that it will start manufacturing all the parts of Nokia phones in Foxconn run facility in Chennai.[71]

Electrical machinery[edit]

Food processing[edit]

India is among the largest producers of fruits, vegetables, rice and milk globally with trade surplus in food items export.[72]

Aarisa Pitha of Jharkhand, Gushtaba of Kashmir, Chicken Curry of Punjab, Khakhra and Khandvi of Gujarat, Bamboo Steam Fish, Vada and Medhu Vada of Karnataka, Khaja and Inarsa of Bihar , Kebab of Uttar Pradesh and Puran poli of Maharashtra have been selected as traditional regional food to be promoted in the ongoing campaign.[73]

Marine Products Export Development Authority announced the deal to supply shrimp eggs to farmer in India for eventual exports of shrimp from India to other countries.[74]

In Odisha Investor Summit, Poseidon Aquatech announced plans to undertake shrimp farming and processing in the state at the cost of ₹100 crore($14.7 million).[75]

Noodles manufacturer Indo Nissin Foods Ltd also announced that it intended to invest additional ₹50 crore($7.3 million) to expand the existing facility by 2017.[75]

Exports[edit]

In December 2017, India announced it will shortly announce a new agricultural exports policy to promote Indian and organic foods, enhance compliance of phytosanitary international food-safety requirements, development of farm-to-port and farm-to-airport cold chain with focus on 25 farm export clusters.[72]

Information technology and business process management[edit]

Leather[edit]

Media and entertainment[edit]

Mining[edit]

During Odisha investor summit, NLC India signed a MOU with govt. of Odisha to set up a coal mining processing plant at the cost of ₹7,500 crore($1.1 billion).[75]

Oil and gas[edit]

In April 2018, Saudi Arabian Oil giant Aramco signed an initial deal with a consortium of Indian refiners to build a $44 billion refinery and petrochemical project on India's west coast. The project will include a 1.2 million-barrels-per-day (bpd) refinery, integrated with petrochemical facilities with a total capacity of 18 million tonnes per year.

Pharmaceuticals[edit]

In April 2018, During PM Modi's visit to Sweden, Biopharmaceutical firm AstraZeneca said it will invest around ₹ 590 crore($90 million) in India over the next five years.[76]

Ports and shipping[edit]

Railways[edit]

  • Alstom/GE Transportation: The French and American rolling stock manufacturers announced 400 billion (US$5.6 billion) locomotive manufacturing factories in Madhepura and Marhaura in Bihar.[77]
  • Hyperloop One: The American company working to commercialise Hyperloop, signed a Framework Agreement with govt. of Maharashtra to begin the development of the route from Mumbai to Pune, starting with an operational demonstration track.[78]

Rapid Transit[edit]

  • CRRC: The Chinese Giant announced in 2016 that it is going to set up a Railway equipment plant in Bavo, Haryana in DMIC with an investment of $63.5 million.

Renewable energy[edit]

In February 2018, During Uttar Pradesh investors summit. Avaada Power and ReNew Power announced Solar projects worth ₹ 10,000 crore($1.4 billion) and ₹8,000 crore($1.1billion) each.[79]

During Magnetic Maharashtra: Convergence 2018, ReNew Power signed a MOU with govt. of Maharashtra and announced a solar projects worth $2.17 billion.[80]

In August 2016, NLC India announced that it is going to set up a 500MW Solar Power Plant in Odisha at the cost of ₹3,000 crore($441 million)[75]

Roads and highways[edit]

Space and astronomy[edit]

Thermal power[edit]

In May 2017, the Union Cabinet approved the construction of 10 indigenously-built Pressurised Heavy Water Reactors (PHWRs). The contracts for the reactors worth an estimated 70,000 crore (US$9.7 billion) will be awarded to Indian companies. The construction 10 reactors with a combined nuclear capacity of 7 GW is also expected to create 33,400 direct and indirect jobs.[81]

During Odisha investor summit, NLC India signed a MOU with govt. of Odisha to set up a 2,000MW Thermal power plant at the cost of ₹15,000 crore($2.2 billion)[75]

Textiles and garments[edit]

Tourism and hospitality[edit]

Wellness and Healthcare[edit]

International healthcare firm Columbia Asia announced in June 2017, that it will invest over Rs 400 crore ($60 million) to set up two new hospitals in India by the end of 2019 as it looks to expand presence in the country.[82]

In Assam investor summit, Indo-UK Institute of Health announced that it will setup a medical city in Guwahati at cost of ₹1600 crore($231 million).[83]

During Happening Haryana summit, Patanjali group announced that it would set up a Healthcare university and a healthcare centre with an investment of ₹5,000 crore($735 million).[84]

In April 2015, Patanjali Ayurved announced that it is going to open 10000 Yoga Gym in Haryana to promote wellness, develop positive thinking among youths and immunise them from day-to-day ailments.[85]

References[edit]

See also[edit]

Citations[edit]

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  6. ^ a b "'Make in India Week' gets Rs 15.2 lakh crore investment commitments", The Economic Times, 18 February 2016 
  7. ^ a b "Make in India: Centre gets Rs 1.20 lakh crore worth investment proposals in electronics sector". timesofindia-economictimes. 
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  31. ^ SAIC Motor's New Car Plant Will Come Up In Gujarat; To Invest Over Rs. 2,000 Crore, NDTV.com 
  32. ^ Peugeot may invest Rs 7,000 crore in Tamil Nadu plant, business standard 
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  34. ^ "French drone maker LH Aviation to Make in India now | business", Hindustan Times, 19 June 2015 
  35. ^ Maharashtra signs Rs 35,000 cr venture with Mumbai pilot who built aircraft on his rooftop, Hindustan times, 20 February 2018 
  36. ^ Wanda Group signs MOU with India’s Haryana State for $10 billion development, Wanda Group, 25 January 2016 
  37. ^ "Dalian Wanda's $10-billion Haryana project on the verge of being pulled out over equity share row". The Economic Times. 28 April 2017. Retrieved 26 May 2018. 
  38. ^ Deeper defence & security cooperation with Russia enhances India's strategic choices, Economic Times, 21 dec 2017.
  39. ^ Pubby, Manu, "Make in India: Russia ties up with Reliance Defence to manufacture Kamov 226T choppers", The Economic Times (28 August 2015) 
  40. ^ Farchy, Jack; Kazmin, Amy (25 December 2015), "Russia and India sign new defence deals", CNBC 
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  42. ^ http://www.msn.com/en-in/news/newsindia/lockheed-martin-ready-to-manufacture-f-16-jets-in-india/
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  47. ^ India to seek supply of radars, missiles by 2018, Hindustan Times, 21 Dec 2017.
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  55. ^ "China's Huawei makes $170 million "Make in India" investment", Reuters, 5 February 2015 
  56. ^ "Huawei India opens new R&D campus in Bengaluru", Deccan Herald, 5 February 2015 
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  65. ^ "Spice Group announces Rs 500 crore investment to build mobile manufacturing unit in UP", DNA India, 28 January 2015 
  66. ^ "#MakeInIndia: Vivo inaugurates its first manufacturing unit in Greater Noida", The Indian Express, 22 December 2015 
  67. ^ "After Foxconn, Taiwanese contract manufacturing major Wistron to Make in India", The Times of India 
  68. ^ #MakeInIndia: Xiaomi launches Redmi 2 Prime which is made in Andhra Pradesh, The Indian Express, 11 August 2015 
  69. ^ "Make In India Project – All You Need to Know About It". 25 January 2016. 
  70. ^ https://www.cnbc.com/2015/11/24/modis-make-in-india-wins-with-xiaomi-but-fdi-infrastructure-a-problem.html
  71. ^ HMD Global to make Nokia phones in India by 2022, liveMINT, 5 April 2018 
  72. ^ a b Agriculture reforms: To stem falling prices, govt looks at new farm exports policy, Hindustan Times, 21 Dec 2017.
  73. ^ Singha, Minati (2 August 2015). "Mudhi to be a part of global 'Make in India' campaign". Times of India. Retrieved 4 August 2015. 
  74. ^ "MPEDA keen on producing 'Make in India' shrimp seed", The Hindu, 1 February 2015 
  75. ^ a b c d e NLC India announces Rs 25,000 crore investment in Odisha, Business Standard 
  76. ^ AstraZeneca to invest $90 million in India over next 5 years, Economic times 
  77. ^ "In boost for 'Make in India', railways inks pacts with Alstom and GE Transport", timesofindia-economictimes 
  78. ^ "India could be the first country to get Hyperloop One, Mumbai-Pune travel time to come down to 25 minutes", The Business Today 
  79. ^ pledges rs 60000 crore renewable energy investors summit, Solar Association 
  80. ^ ReNew Power Signs Pact with Maharashtra Government for Investment Worth $2.17 Billion, MERCOM India 
  81. ^ "7,000 MW 'Make in India' nuclear projects to create 33,400 jobs: Govt". Business Today. Retrieved 18 May 2017. 
  82. ^ .economictimes.com/industry/healthcare/biotech/healthcare/columbia-asia-to-invest-rs-400-crore-on-2-new-hospitals-in-india/amp_articleshow/59354908.cms Columbia Asia to invest Rs 400 crore on 2 new hospitals in India Check |url= value (help), economic times 
  83. ^ Indo-UK Institute of Health to Invest Rs 1,600 Cr to Set up Medicity in Assam, Northeast Today 
  84. ^ Patanjali to set up healthcare unit, varsity in Haryana for 5k crore, Economic Times 
  85. ^ Ramdev plans to open 10,000 gyms in Haryana, Financial Express 

External links[edit]