Make in India (MII)

By:- Kartik-

Verma(MBA)

On September 25th,2014 at Vigyan Bhawan, New Delhi, Modi ji announced the launch of India’s most ambitious plan to boost manufacturing in the country in the presence of business stalwarts like Mukesh Ambani, Cyrus Mistry, Kumar Mangalam Birla and Azim Premji.

Main Motive...It is important for the purchasing power of the common man to increase, as this would further boost demand, and hence spur development, in addition to benefiting investors. The faster people are pulled out of poverty and brought into the middle class, the more opportunity will

there be for global business. Therefore, investors from abroad need to create jobs. Cost effective manufacturing and a handsome buyer – one who has purchasing power – are both required. More employment means more purchasing power.

Through Make In India initiative, 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's, satellites to submarines, pharmaceuticals to ports and paper to power. It contains a raft of proposals

designed to urge companies — local and foreign — to invest in India and make the

country a manufacturing powerhouse.

Sectors Covered In MIIThe focus of MII programme is on 25 different

sectors.

Automobile

Automobile Components

Aviation

Biotechnology

Chemicals

Construction

Mining

Defence Manufacturing

Leather

Oil and Gas

ElectricalMachinery

MediaAnd

Entertainment

Electronic Systems IT and BPM

Food Processing

PortsAnd

ShippingPharmaceuticalsRailways

Roads andHighways

Space

ThermalPower

TourismAnd

Hospitality

RenewableEnergy

WellnessTextiles

AndGarments

Reason for choosing logo of lion ?

The Make In India logo is derived from India’s National Emblem. The wheel denotes the peaceful progress and

dynamism – a sign from India’s enlightened past, pointing the way to a vibrant future. The prowling lion stands

for strength, courage, tenacity and wisdom – values that are every bit as Indian today as they have ever been.

Doing business in India is now easier

India’s rank in the Doing Business Report 2015 was 142 among 189 countries, which improved to 130 in the Doing Business Report, 2016. The Government of India has emphasized the importance of ‘Ease of Doing Business’ as a major pillar

of the ‘Make in India’ initiative, and it is working extensively on improving India’s rank in the World Bank Group's Doing

Business Study.

India has jumped 13 positions from last year to rank 2nd

among 30 developing countries this year on ease of doing business, according to consultancy firm AT Kearney. The 2016 Global Retail Development Index(GRDI), which

ranks top 30 developing countries for retail investment worldwide, said a pick-up in GDP growth and better clarity regarding Foreign Direct Investment (FDI) regulations

have helped India improve its ranking.

The improvement in two indicators, ‘starting a business’ and ‘getting electricity,’ pushed India up the ladder. “Now,

companies can get connected to the grid and get on with their business, 14 days sooner than before” i.e. It takes 29

days to start a business nowadays but in 2005 it takes around 4 months. And in 2015 it was 28.4 days. But

according to global avg. there are 132 countries which takes around 20 days to start a business.

The Union Government has radically liberalized the FDI regime on 20thJune,2016, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015.

Now most of the sectors would be under automatic route, except a small negative list. India has been rated as number 1 FDI Investment Destination by several International Agencies.

In last two years, Government has brought major FDI policy reforms in a number of sectors:-

Radical changes for Food Products Manufactured/Produced in India:-

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India.

Pharmaceuticals:-First it was 100% FDI in pharmaceutical and now it has been decided as 74% FDI in

pharmaceuticals and beyond that government approval is needed.

Private Security Agencies:-The extant policy permits 49% FDI under government approval route in Private

Security Agencies. FDI up to 49% is now permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval route.

The auto component industry registered a turnover of USD 39 billion in the FY 2015-2016 registering a growth rate of 8.8%. A cost-effective manufacturing base keeps costs lower by 10-25 % as compared to operations in Europe and Latin America.

Country’s exports of auto components edged up by 3.5% to USD 10.8 billion in 2015-16. Exports have been estimated to account for as much as 26% of the market by the year 2021. Indian auto components are exported to more than 160 countries.

EUROPE – 38.1%NORTH AMERICA – 21%

ASIA – 25%According to Department of Industrial Policy and

Promotion (DIPP) FDI inflows into the Indian automobile industry from April 2000 to March 2016 was USD 15.065 billion.

Make in India: Embracing Growth and Change

India is the fastest growing large economy in the world today – an impressive position it has held since it overtook China in year 2015 – with the IMF predicting that India is likely to retain the status till 2020.GDP – Growing @ of 7% since 2014.IMF – Kept projections at 7.5% in 2016-17.Present Global Growth Rate – 3.6%. India is also 3rd largest economy in the world regarding its purchasing power parity according to the World Bank with the GDP of over USD 2.1 trillion.

The country is home to the 2nd largest English-speaking population in the world after the US. It also has the largest youth population in the world at 650 million with more than half the population below 25 years of age. This demographic is arguably India’s greatest strength.

The government has also launched progressive initiatives like:

Digital India.Start Up India.

Skill India.Pradhan Mantri Jan-Dhan Yojana (PMJDY).

Smart City.

India is currently the 6th largest motor vehicle producing country in the world. The industry produced a total of 2,39,60,940 vehicles in April-March 2016 as compared to 2,33,58,047 in April-March 2015, registering a growth of 2.58% over the same period last year.

The country is also currently the 6th largest market in the world for automobiles and is expected to become the world's 3rd Biggest car market by the year 2020.As per the Automotive Components Manufacturers Association of India (ACMA), the world standings for the Indian automobile sector are as follows:

• Largest Tractor manufacturer.• 2nd largest Two-Wheeler manufacturer.

• 2nd largest Bus manufacturer.• 5th largest heavy Truck manufacturer.

• 6th largest Car manufacturer.• 8th largest Commercial Vehicle manufacturer.

India to double its investments in clean energy research

Union Minister for Science and Technology Harsh Vardhan on 4th June, 2016 announced India’s plan to double the investment for its clean energy research over the period of next five years.

Current investment $72 billion to $145 billion.

“With super-efficient air conditioners we can reduce the energy demand from 60 Giga Watts of energy to 40 GW, a saving of over 30 per cent. This translates to cost savings in consumer energy bills of $2.8 billion and GHG reductions of 20 million tons of CO2 equivalent,”.

Announced on November 30 last year by 20 countries to accelerate public and private global clean energy innovation in PARIS.

Dipp food processing sector The Food Processing Industry in India contributes around 9% of the

manufacturing GDP. According to Compounded Annual Growth Rate (CAGR) expected to grow by 11%

i.e. to USD 65.4 billion by 2018.Remarkable achievements:- FDI Policy Reform - 100 % FDI permitted through government approval route. Healthy FDI inflows - $1.04 billion of FDI inflows into the country from April

2014 to March 2016. Capacity Augmentation - 32 Lac MT capacity with value of ₹9000 crores has

been created with a grant of ₹800 crores within the last two years; this is expected to reduce wastage by 10% per annum or Rs. 9200 crores every year.

Indian Auto Component Industry grows by 8.8% in FY 15-16:-•Turnover Rs. 2.55 lakh crore•Industry contributes 2.3% to National GDP•Auto component exports scale Rs. 70,900 crore growing 3.5%.

Imports increase by 9.3% from USD 13.5 billion in 2014-15 to 13.8 billion in 2015-16.Asia contribution- 58.6%.

Aftermarket increase by 12% from 39,875 crore to 44,660 crore.

Difference between made in India and make in India?