History was written on 26th May 2014 when Narender Modi, the former Chief Minister of Gujarat took an oath to lead the whole nation. His remarkable victory in 2014 election draws the light on the fact that he is the only politician, after Indra Gandhi who has ignited the suppressed hopes and excitement not just among the people of Gujarat but also among the whole nation! Ruling Gujarat for thirteen years he transformed what was then referred to as one of the economically weaker states (due to its terrain and low commercial activities) into an industrial and commercial hub. In him India saw a dynamic leader who understands the uniqueness of each state, who brings opportunity out of adversity,who not merely plans but also executes, who is aware of the evils of red tapism. Why wouldn’t Indians have elected him, he who had already proven his integrity in the state of Gujarat.
An introvert and workaholic by nature, Narender Modi along with his Cabinet Ministers didn’t sit back to enjoy the taste of his historic success, instead he commenced the work towards his envisioned notion of New India, made many trips to Asian countries such as Bhutan and Japan, remained active on social media even after the end of his election campaign and gave a speech on children’s day which was screened not only in government schools but also in private schools. He launched two major campaigns namely Swachh Bharat Abhiyan and Make In India. Both the campaign went viral on social media. On 2nd October 2014, he launched the Swachh Bharat Campaign at Rajghat where he cleaned the road himself. While Swachh Bharat Abhiyan focuses on environmental aspects of New India, for other areas ‘Make In India’ was launched on the eve of his visit to United States as a Prime Minister Of India. Make In India since then is a major campaign in the history of India. It is the talk of the day at global level, attracting many leaders of different countries to come in front to appreciate the objective and policies of the campaign. In one of his speeches, Prime Minister calls for nationwide efforts to give India its status of Golden Bird.
Make In India-“Fostering Innovation”
Our Prime Minister may be a 65 years old man but at heart and soul he is still young. Unlike the image of typical fat bellied politician, he is a man of action who has to get the work done even if he or his subordinates have to burn the midnight oil. There are various driving forces which led to the conception of Make In India campaign. The continuous decline in the social and economical status of Mother India grieved him deeply. Before his accession to the Prime Minister’s office, manufacturing sector’s contribution to India’s total GDP was 15%. For the coming years he has envisioned it to rise up to 25%. This would only be possible if each economical sector be it defence, automobile or railway manufactured majority of their products in India rather than getting them imported from other parts of world. However the norms and regulations of Indian government were such that many industries had to shutdown their factories and elope to other Asian Nations. While inaugurating the campaign he remarked,” “Whenever I met [business] people for the last few years they would tell me – we want to shift out… It pained me that people of nation are forced to leave.We do not want any industrialist being forced to leave India.”
Our revolutionary Prime Minister believes that this campaign will boost India’s manufacturing output while at the same time ensuring that the youth of India avails its benefits. The market for manufacturers will also consequently expand. Currently India under Make In India campaign has become the country partner for the world’s biggest industrial fair called Hannover Messe (http://www.hannovermesse.de/home ) from 13th to 17th April 2015.
Mr. Modi further added that India is a pool of talent and that it was this talent because of which India could successfully design and launch its first indigenous Mangalyaan to Mars’ orbit. Make In India aims to foster and tap on this talent,giving back the status of Sone Ki Chidiya. In his own words “ We don’t have to tell the world our address. There’ll be a Vasco da Gama in every nook and corner in India”
Ache Din for all manufacturers @ Make In India
The scope of the campaign spreads over to 25 sectors of Indian Economy. It’s website gives detailed facts and policies of each sector including the current statistics, growth possibilities and reasons to invest. Here is an overview of the intended development of each manufacturing sector of Indian Economy, although for in depth details we suggest you to visit the official website of the campaign. We have also handpicked the famous tweets corresponding to each sector.
This sector accounts to 7% of India’s total GDP, employing 19 million people. The policy of 100% FDI would ensure that India becomes the third largest producer of automobiles by 2016, producing more than 5% of total global production. An estimation has been made that with the increase in production of passenger and commercial vehicles, total sales of electric vehicles by 2020 would also rise to 6-7 million units.
It currently contributes USD 39.7 billion to India’s economy. A threefold increase in this number has been projected with rise of global OEM sourcing and reduction in excise duties in automobile sector. In 2020 it would be the fourth largest in the world after China, Japan and US.
This sector at present requires a lot of development. It’s air trips accounts to 0.04 trips per capita per annum in comparison with 2 trips in U.S.A and 0.3 trips in China. In 2013 India’s total passenger traffic was estimated to be 163.06 million. The new policies under The Make in India campaign such as up to 100% FDI for Greenfield air projects, exemption of excise duties and Income tax (source: PAN Card Seva) would ensure that India rises up to the position of the third largest in aviation market by 2020. Many foreign aviation companies such as Airbus, AirAsia, Honeywell Aerospace and Rolls Royce have given consent to venture Indian Aviation Market!
— Make in India (@makeinindia) March 18, 2015
This sector is one of the upcoming domains of Indian Economy. Its sales rose by 15.1% in 2013 with market revenue of USD 3.81 Billion. With increased Research and Development activities, the likewise incentives of the new government and the fast multiplying demand for healthcare would lead to a rise up to USD 11.6 Billion within the next two years.
This sector in India is one of the most varied sectors which includes more than 70,000 products of commercial value. The total production of the industry in 2014 is estimated to be 19,308 thousand metric tonnes. India stands at the third position as the producer of aggro-chemicals and third largest polymers’ consumer. To further aggravate the growth of the industry various measures have been taken such as abolishment of industrial licensing for all most sub-sectors with an exception of particular hazardous chemicals.To curb the environmental effect of the industry due attention has been given to sustainable and green technologies. Training centres with specialised in chemical industry has been established.
This sector is second largest employer and economic contributor after agriculture. It provides employment to more than 35 million people and constitutes 10% of the country’s GDP. The government plans to invest USD 1,000 Billion on infrastructure sector. It is yet to launch new mission for urban development. This mission would aid in developing 500 cities which might either have some tourist and religious importance or house a population of 100,000 and more. For the following ten years these cities would be motivated to channelize private capital and to retain their services and infrastructure.
It accounted to USD 37.3 Billion in previous Budget. 605 of India’s defense requirement is met through imports. It is a very high level of dependency of one country over another . To increase India’s efficiency the campaign has introduced various strategies such as doing away of requirement of 51% single equity Indian ownership and a removal of three years lock-in period on equity transfer.
This sector has been experiencing a yearly increase of 14.8% in its exports for past eight years. In 2013 its total revenue amounted to USD 24 Billion. The coming up of new market expanding reforms like Power For All and the agenda to increase 88.5 GW and 93 GW of capacity by 2017 and 2022 respectively. The ongoing expansion of nuclear capacity will give significant opportunities for business to the electrical industry.
It generated total revenue of USD 68.31 Billion which in 2015 would be worth USD 94.2 Billion. India is the third largest producer of technicians and scientists. Mobile phones, notebooks,flat panel display TVs, inverters/USP, EMS/LCD monitors, digital cameras and servers are the products which generate huge revenues. The government has taken various measures to give rise to this sector. Modified Special Incentive Package Scheme(MSIPS) with investment proposals worth USD 13.4 Billion and Venture Funds such as Electronics Development Fund, KITVEN Fund, Walden India Fund and SIDBI Fund are some of the measures.
Food Processing sector
It is fifth largest in the world in production,export and consumption. It contributes INR 845.22 Billion to the country’s GDP. It is constantly increasing at the rate of 8.4% in previous five years. To feed the growing population of 1.2 billion with the world’s largest youth population it would require food processing sector to expand its horizon. The government has permitted 100% FDI in the automatic route for majority of food products except for the products manufactured by micro and small enterprises.
IT and BPM
It amounts to 8.1% of India’s total GDP. It is the largest employer in private sector giving livelihood to 3.1 million people.IT sector, constituting 7% of global IT market, has saved USD 200 Billion of various clients in the past five years. BPM sector exports services worth USD 20 Billion. The government under Make In India campaign is going to establish Software Technology Parks Of India (STPIs) and formulate Special Economy Zones (SEZ) Policy. It has now aimed to generate USD 225 Billion by 2020 from IT and BPM industry.
It is the largest employer of young workforce below the age of 35. In 2014 the industry’s worth was USD 6 Billion, producing 10% of the leather of the world. it is expected to grow by 24% in the next five years. To give a boost to the production of leather footwear, the government has reduced the excise duty from 12% to 6% for any footwear with the price between INR 200 and INR 1000. The entire industry has been DE-licensed,enabling expansion on the ‘modern lines with state-of-the-art machinery and equipment.’
Media and Entertainment
It is an ever growing industry. The country has about 2000 multiplexes, 94067 newspaper households with 161 million of television and 214 Million users of internet out of which 130 million are users of mobile internet. Indian Entertainment Industry is third largest market of Television in the world, generating INR 918 Billion in 2013 which is 11.8% increase. The campaign promises an increase in liberalization and relaxation of tariff. To facilitate ease of finance and rise in profitability many measures have been undertaken such as digitization of cable distribution.
Sector produces 4 fuel minerals, 50 non-metallic minerals, 10 metallic minerals, 10 metallic minerals and 24 minor minerals, in total amounting to 88 minerals. The country houses of about 301.56 billion tonnes of coal reserves in April 2014 and in the very year its production stood at 557.7 million tonnes. It had 3108 operating mine in 2013 excluding areas of minor minerals, natural gas, petroleum and atomic minerals. India’s iron ore production stands fourth at the global level manufacturing 136.02 million tonnes of iron ore. It has been projected that India would be second largest steel producer by 2015. The government has now allowed up to 100% FDI for the purpose of exploration, minerals processing, mining and metallurgy under the automatic route for all non-atomic minerals and non-fuel including precious stones and diamonds.
Oil and Gas sector
It is majorly dependent on imports. Oil imports amounts to over 8% of the country’s total domestic consumption on May 2014. India in 2013 stood fourth after USA,China and Japan on the list of largest consumer of crude oil and petroleum in the world. At the beginning of 2014, India’s proven natural gas reserves accounted to 47 Trillion cubic feet with 34% of total reserves are onshore and the rest 66% are offshore. EIA projects in India and China under International Energy Outlook 2013 will constitute half of global demand growth for energy by 2040, with India’s demand growing at the pace of 3% per year.
This industry amounts for 10% of global pharma by volume and 2.4% by value. By 2020 the healthcare sector is projected to grow from USD 65 Billion to USD 250 Billion. The government has started to work towards this vision, they are giving exemptions of 5 years from price control to drugs manufactured through R&D.
They aid in 90% of India’s trade by volume and 70% by its value. 3.9% CAGR was seen in Cargo traffic at major ports, container cargo amounts to 10.4 and 13.7% CAGR at non-major ports. The ports have 800 Million Metric Tonnes capacity of cargo. The government plans to expand port capacity by 3200 MMT to control the expected traffic of 2500 MMT by 2020. There is a close focus on the development of terminals which deal with a specific kind of cargo for eg LNG.
Railways of India are the world’s largest carrier of passengers and stands 4th largest for rail freight carrier. It employs strong workforce of about 1.3 Million. The Indian railways are aiming to include private equity through individuals,trusts, corporates,NGOS, charitable institutions,etc to aid passenger amenities such as battery-operated carts to facilitate movement for differently abled and senior citizens, at station. The government has now opened the foriegn domestic investment to 100% in railways to facilitate development in infrastructure of railways.
It is variedly found in India. By the end of year 2014, this sector had a capacity of 1,500MW annual PV(photo Volatics). The prices of modules for solar energy since 2008 have reduced by 80% while the prices of wind turbine have declined by 25%. It has been projected to generate 20,000 MW of solar power in next seven years. Liberal environment has been liberated for foreign investment and a dedicated institution to provide financial assistance has been created-Indian Renewable Energy Development Agency. By the end of 2017, the renewable capacity will increase to 55GW due to additional target capacity of 30GW. This includes 2.1 GW from hydro power, 2.9GW from biomass, 10GW from solar energy and 15GW from wind energy.
Roads and highways
This sector has wrapped up 100 Public Private Partnership projects and 165 are currently on going. To improve transportation facilities in north-eastern states an entity entirely for construction of roads and border region under MoRT&H. The government aims to achieve a total of 64,340 kms of National Highways under many programmes like Special Accelerated Road Development Program for North-east region, The National Highway Development Project (NHDP) and National Highways Interconnectivity Improvement Project(NHIIP), Left Wing Extremist(SARDP-NE).
— Make in India (@makeinindia) February 7, 2015
It has a ‘constellation of 9 communication satellites, 10 earth observation satellites, 1 Meteoro-logical satellite and 1 scientific satellite’. Formal co-operative arrangements have been made between 3 multinational bodies and 33 countries with Indian Space Research Organization. For establishment and operations 74% FDI has been allowed under government route.
Textile and Garment
It contributes up to 63% the world’s total market share. India is the first largest in global jute production. Textile and garment industry is one of the largest employment generating sector giving livelihood to 45 Million people directly. The country has the highest loom(including hand loom) capacity. Production of fiber in the year of 2014 is 7 Million Tonnes and is projected to reach the annual production of 10 Million in 2017. The government has set a goal to increase the production from USD 40 Bllion in 2014 to 65 Billion by 2017. 100% FDI has been allowed in this industry.
Thermal Power sector
It has produced of about 156.5 GW in 2013. India is 5th largest electricity producer as well as electricity consumer. In March 31, 2013 the coal reserves were 298.94 Billion Tonnes in which 123.19 Billion Tonnes were said to be proven reserves. Apart from allowance of 100% FDI under automatic route in the power sector, the government intends to launch the Ultra Mega Power Project (UMPP) scheme. Capacity additions as large as 174.9GW are expected up to 2022.
Tourism and Hospitality
It is a fast growing industry which has brought INR 1058.36 Billion in 2012 from its foreign exchange earnings, a 12% rise from 86.453 Million in 2011. India has 30 world heritage sites. There is 19.9% rise in the number of domestic tourist visits. In 2012 there were 1,036.3 Million tourist visits as opposed to 864.53 Million tourist visits in 2011.recently government has made changes to Visa on Arrival facility as it majorly influences the travel plans of tourist to any country. In 2012 the number of Visas on Arrival was 16,084 and in 2013 with an increase of 26% it was 20,294.
This sector accounts to INR 490 Billion and comprise of 40% of the market. More than 32 Million people in USA are practicing yoga. And the world is now highly demanding Indian wellness services. Europe,Ukraine,Japan,Russia,Philippines,Kazakhstan,Kenya,Japan and UAE are the biggest markets for Indian herbal products. India’s coastline, rain forest Eco-system, deserts, and Himalayan region are adobe of 6600 medicinal plants. The country profited an amount of INR 22.7 billion through AYUSH exports in the year 2013-14.Raw medicinal herbs accounted for INR 22.7 billion, medicament accounted for INR 9.7 billion whereas,extracts of medicine had accounted for INR 1.9 billion. Government has come up with various incentive programmes such as National Health Assurance Mission, establishment of North-eastern Institute of Folk Medicine at Passighat and north-eastern Institute of Ayurveda and Homeopathy at Shillong.
What India has to say? The Make In India campaign has become the most sought after social campaign ever initiated by the government of India. Famous personalities from all sectors from all over the nation are joining hands to mitigate change and to do their bit in making of New India. Ever since the campaign was launched its Facebook page gets a new member in every three seconds. An official statement on 5th Jan remarked that the campaign has connected over 2.1 billion people at the global level through its social media accounts. Its Facebook page has over 3 million fan base. Its official Twitter handle @makeinindia_handle has more than 2.63 lakh followers within 90 days of its launch. The launch video itself garnered views over 5.7 lakh on Youtube.Any idea to be successful needs to be projected well. The company which has designed this digitized campaign is Weiden+Kennedy(W+K), led by executive creative director, V Sunil. It was this company which came up with ‘industrial-wheels-lion-silhouette’ logo. They chose lion as their strongest symbol because the animal has connection with Emperor Ashoka. W+K wanted the launch event to be as slick as an Apple Launch. The US based company takes pride in itself for doing the job that highlights an “India that is finally comfortable in its own skin” and combined with “regional flair, values and tastes with global aesthetics and pop culture.” The campaign’s website has so far received a huge response with 5.5 million page views in which 1.7 million stands for users all over the world! Kenichi Ayukawa, Maruti Suzuki Managing Director and CEO, at the launch event remarked that it isn’t easy to do business and that “We are fully confident that, under the Make in India programme of the Prime Minister, factors that adversely affect the competitiveness of manufacturing will now be removed quickly.”
The initiative of our Prime Minister focuses on attracting various business houses to manufacture and invest in the country with a sole aim to transform India into a global hub of manufacturing goods while metamorphosing the economic condition of the country. The campaign has taken intentional Digital First approach for the purpose of communicating and spreading its agenda all over the world.
After the success of Make In India campaign the government is considering to launch another major campaign “Read India”. For more on the campaigns stay tuned and do take your step like a Lion!
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