Under Make in India initiative the government in the last one year had announced several steps to improve ease of doing business and attract foreign direct investment into the country.
Make in India initiative launched by Prime Minister Narendra Modi on 25th September last year was an initiative aimed at making India a global manufacturing hub.
It was also rolled out with the aim of creating millions of jobs in the country.
Under the 'Make in India' initiative, the government has, in the last one year, announced several steps to improve the business environment by easing processes to do business in the country, and attract foreign investments.
As PM Modi's flagship program completes a year, let's go through the basics of the 'Make in India' initiative, and what it stands to cover.
What is 'Make in India' program?
The 'Make in India' program is an initiative launched to encourage companies to increase manufacturing in India. This not only includes attracting overseas companies to set up shop in India, but also encouraging domestic companies to increase production within the country.
'Make in India' aims at increasing the GDP and tax revenues in the country, by producing products that meet high quality standards, and minimising the impact on the environment.
Fostering innovation, protecting intellectual property, and enhancing skill development are the other aims of the program according to the 'Make in India' website.
AT A GLANCE
25 major 'Make in India' focus areas:
Automobiles
Automobile Components
Aviation
Biotechnology
Chemicals
Construction
Defence manufacturing
Electrical Machinery
Electronic systems
Food Processing
IT and BPM
Leather
Media and Entertainment
Mining
Oil and Gas
Pharmaceuticals
Ports and Shipping
Railways
Renewable Energy
Roads and Highways
Space
Textiles and Garments
Thermal Power
Tourism and Hospitality
Wellness
Government has allowed 100% FDI in all sectors except Space(74%), Defence (49%) and News Media (26%)
Policies under 'Make in India' initiative:
There are 4 major policies under the 'Make in India' program:
1. New Initiatives: This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency.
Here's what the government has already rolled out
-- Environment clearances can be sought online.
-- All income tax returns can be filed online.
-- Validity of industrial licence is extended to three years.
-- Paper registers are replaced by electronic registers by businessmen.
-- Approval of the head of the department is necessary to undertake an inspection.
2. Foreign Direct Investment (FDI):
The government has allowed 100% FDI in all the sectors except Space(74%), Defence (49%) and News Media (26%).
FDI restrictions in tea plantation has been removed, while the FDI limit in defence sector has been raised from the earlier 26% to 49% currently.
3. Intellectual Property Facts:
The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology.
The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual property regime in the country, according to the website.
These are the various types of IPR:
-- Patent: A patent is granted to a new product in the industry.
-- Design: It refers to the shape, configuration, pattern, colour of the article.
-- Trade mark: A design, label, heading, sign, word, letter, number, emblem, picture, which is a representation of the goods or service.
-- Geographical Indications: According to the website, it is the indication that identifies the region or the country where the goods are manufactured.
-- Copyright: A right given to creators of literary, dramatic, musical and artistic works.
--Plant variety Protection: Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.
--Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor.
4. National manufacturing:
Here the vision is,
- to increase manufacturing sector growth to 12-14% per annum over the medium term.
- to increase the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.
- to create 100 million additional jobs by 2022 in manufacturing sector.
- to create appropriate skill sets among rural migrants and the urban poor for inclusive growth.
- to increase the domestic value addition and technological depth in manufacturing.
- to enhance the global competitiveness of the Indian manufacturing sector.
- to ensure sustainability of growth, particularly with regard to environment.
Response to the 'Make in India' initiative:
The government has said that it has, so far, received Rs 1,10 lakh crore worth of proposals from various companies that are interested in manufacturing electronics in India.
Companies like Xiaomi, Huawei have already set up manufacturing units in India, while iPhone, iPad manufacturer Foxconn is expected to open a manufacturing unit soon.
Recently, Lenovo also announced that it has started manufacturing Motorola smartphones in a plant near Chennai.
In a report released by the World Bank, about a state-wise bifurcation based on ease of doing business, Gujarat was ranked as the top state, followed by Andhra Pradesh and Jharkhand.
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