Transforming India into a global manufacturing hub in the era of make in India: government initiatives and accomplishments

Make in India is a program launched by the Prime Minister in September 2014 to make India as one of the leading manufacturing hub in the world by raising its contribution from 16% at present to 25% of GDP by the year 2020.
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Transforming India into a global manufacturing hub in the era of make in India: government initiatives and accomplishments International Journal of Management (IJM) Volume 8, Issue 4, July– August 2017, pp.60–65, Article ID: IJM_08_04_008 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=4 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication TRANSFORMING INDIA INTO A GLOBAL MANUFACTURING HUB IN THE ERA OF MAKE IN INDIA: GOVERNMENT INITIATIVES AND ACCOMPLISHMENTS Richa Awasthi Research Scholar, Department of Commerce, Lucknow University, Lucknow ABSTRACT Make in India is a program launched by the Prime Minister in September 2014 to make India as one of the leading manufacturing hub in the world by raising its contribution from 16% at present to 25% of GDP by the year 2020. Some of the initiatives taken to enhance the share to 25% by the Government are Rs.6000 crores package for the textile sector to make India more competitive than Bangladesh &Vietnam in the global market, prioritizing indigenously made defense products and 25% share of defense production will be open for private firms, creation of Technology Acquisition And Development Fund to promote clean green and energy efficient technologies by MSME, Government to invest 10 Billion US dollar in two semi conductor plants to facilitate electronics manufacturing in the country and providing loans to small scale enterprises under Pradhan Mantri Mudra Yojna. The net impact of these initiatives is the investment commitments by Multinational and Indian Companies to the tune of 15.2 trillion Rupees. Some of the global giants who have made these commitments are- GE, Siemens, HTC, Toshiba, Boeing, LeEco, Zopo Mobile, Huwaei, Force Motors etc. Some of these commitments have been realized. As per the available estimates in September, 2016, FDI inflow in electronic manufacturing sector alone is of the order Rs.23000 crores in 2016 as compared to Rs.11000 crores in 2014. The accomplishments of these initiatives are visible in terms of increase in the share of the manufacturing sector from around 17% to 17.5% in real gross value added at basic 2011-12 prices and from around 16% to 16.25% in gross value added at current prices. Thus Make in India campaign of the government has facilitated in stimulating the manufacturing sector of the economy. There is a need to take up more measures especially for enhancing the contributions of textiles, electronics, defense manufacturing and food processing industries in the gross value added for achieving the stipulated target of 25% set by the government for the year 2020. Key words: Make in India, GDP, Gross Value Added, Initiatives, Accomplishments http://www.iaeme.com/IJM/index.as 60 editor@iaeme.com Richa Awasthi Key words: Richa Awasthi, Transforming India into a Global Manufacturing Hub in the Era of Make in India: Government Initiatives and Accomplishments. International Journal of Management, 8 (4), 2017, pp. 52–59. http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=4 1. INTRODUCTION Prime Minister Narendra Modi launched the Make in India campaign on Sept 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. This is a very promising initiative and hopes to attract capital and technological investment in India. The new government has undertaken a series of initiatives to remove the barriers to propel manufacturing growth and promote India as a manufacturing destination. It has been over two years since the start of Make in India campaign by the government hence it is opportune time now to undertake the review of the initiatives as well as progress made towards making India a global manufacturing hub. 2. OBJECTIVES The main objective of the paper is to review the initiatives undertaken by the government and to access the extent of progress made towards making India an important manufacturing centre in near future Initiatives Undertaken by the Government The government of India has taken several initiatives to promote the concept of Make In India from domestic to the global level. Some of the notable initiatives and developments are: Initiatives Pertaining To Textile Sector Earlier India was the leader in the textile sector from years 1995 to 2000 but afterwards China became the leader followed by Bangladesh and Vietnam and because of this Union government announced Rs.6000 crore packages for the textile sector. These initiatives are expected to lead to an increase in exports by $30 billion and helps attract investment of about $12 million in three years. Out of Rs. 6000 crore packages, Rs.5500 crore is in the form of 5% duty drawback on domestic duty paid inputs to the extent of 5% to all manufacturers of garments in the country. This is expected to increase garments exports by $30 billion and helps to attract FDI of about $12 million in three years. The remaining Rs 500 crore is for additional incentives under Amended Technology Upgradation Funds Scheme (ATUFS), where the subsidy provided to garmenting units under the scheme is being increased from 15 per cent to 25 per cent. With this policy support India can regain its top position in three years. Initiatives Pertaining To Defense Sector Another important area for enhancing the share of manufacturing sector is the production related to the defense sector. In this regard 25% of defense public sector undertaking turnover can be offloaded to the private sector. To facilitate forward linkag ...