Why in News?
- Recently, over a dozen “restrictive and discriminatory” conditions which prevented local suppliers from participating in the bidding process were flagged by the Union Government to uplift ‘Make in India’ initiative.
- These conditions were in violation of the Public Procurement (Preference to Make in India) Order, 2017, issued to safeguard the interests of local suppliers and to encourage manufacturing and production of goods and services in India with a view to improve income and employment.
About Make in India Programme-
- Make in India programme was launched in 2014, it seeks to transform the country into a leading global manufacturing and investment destination.
- The programme is under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.
- The programme is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’.
- Make in India has substantial accomplishments across 27 sectors under Make in India 2.0 which involves strategic sectors of manufacturing and services as well.
- Objectives-
- Attract foreign investment for new industrialisation and evolve the already existing industry base in India to surpass that of China.
- Target of a rise in manufacturing sector growth to 12-14% per year over the medium term.
- To increase the share of manufacturing sector in the country’s Gross Domestic Product from 16% to 25% by 2022.
- To generate 100 million additional jobs by 2022.
- To boost export-led growth.
- Four Pillars-
- New Processes- ‘Make in India’ recognizes ‘Ease of Doing Business’ as the single most important factor to encourage entrepreneurship for which a number of initiatives have already been undertaken.
- The goal is to de-license and de-regulate the industry during the entire life cycle of a business.
- New Infrastructure- The government intends to create industrial corridors, reinforce existing infrastructure, and design a fast-paced registration system as part of its commitment to the growth of the industry.
- New Sectors- ‘Make in India’ has identified 27 sectors in manufacturing, infrastructure and service activities and complete information is being shared through interactive web-portal and professionally developed brochures.
- New Mindset- ‘Make in India’ expects to bring a paradigm shift in how Government interacts with industry.
- The Government will partner industry in economic development of the country and the approach will be that of a facilitator and not regulator.
- Outcomes-
- Foreign Direct Investment (FDI) Inflows- To attract foreign investments, Government of India has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
- FDI inflows in India stood at USD 45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for 08 years. The year 2021-22 registered the highest ever FDI at USD 83.6 billion
- Production Linked Incentive (PLI)- The Production Linked Incentive (PLI) scheme across 14 major manufacturing sectors, was launched in 2020-21 as a big boost to the Make in India initiative.
Related Initiatives-
- National Single Window System.
- PM Gati Shakti Programme.
- One-District-One-Product (ODOP).
- Scheme for building Semiconductor Ecosystem- Recognising the importance of semiconductors in the world economy, the Government has introduced a USD 10 billion incentive scheme to develop a semiconductor, display, and design ecosystem in India.