Features of the *Make in India* programme and the gains expected from it

The Make in India programme

Make in India is an initiative of the Government of India, launched on 25 September 2014, to encourage both Indian and multinational companies to manufacture their products in India.

Features of the programme

1. Clear aims. Its main objectives are to create jobs and to raise skills across 25 sectors of the economy.
2. Four pillars. The programme rests on four pillars, which together change how government, investors and industry work with one another.
   • A new mindset. The government took the role of a facilitator rather than a regulator, working with industry as a partner in the country's economic development, to create a collaborative climate for industrial growth and innovation.
   • New sectors. Foreign direct investment was opened up substantially in fields such as defence production, insurance, medical devices, construction and railway infrastructure, with easier rules in insurance and medical devices.
   • New processes. Ease of doing business was treated as central to promoting entrepreneurship, and measures were taken to make the business environment friendlier for start-ups and established firms alike.
   • New infrastructure. Industrial corridors and smart cities with modern technology and high-speed communication were developed; registration systems were streamlined and the infrastructure for intellectual property rights improved to support innovation and research; and industry's skill needs were identified so that the workforce could be trained to meet them.
3. Part of a wider push. It works alongside other government initiatives such as Skill India and Digital India.

Gains expected from the programme

• More jobs and better skills. Creating employment and upgrading skills are the programme's central aims, and matching workforce training to industry's needs supports them.
• Foreign investment and growth. Wider and easier foreign direct investment is meant to draw international capital and spur growth.
• A healthier trade position. With Skill India and Digital India, Make in India is expected to help the economy's exports and imports and bring a steady, sustainable trade balance.
• More entrepreneurs. Easier processes are intended to encourage new ventures as well as help existing firms.
• Industrial growth and innovation. A government working as industry's partner aims to support industrial growth and innovation, and better intellectual property infrastructure backs research.
• World-class infrastructure. Industrial corridors and smart cities are meant to give manufacturers facilities of a global standard.

As an illustration, a maker of medical devices, a sector where foreign investment rules were eased, could set up a plant in an industrial corridor, hire and train local technicians and sell both at home and abroad; each step draws on one of the expected gains.

Conclusion

Make in India seeks to turn India into a base for manufacturing by changing how government deals with business, opening new sectors to investment, simplifying procedures and building infrastructure. Its expected rewards are jobs, skills, investment, innovation and a stronger trade position.