View of MAKE IN INDIA & ITS IMPACT ON INDIAN ECONOMY

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal (International Journal) ISSN-2456-1037

Vol.04,Special Issue 06, (IC-IREASM-2019) October 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

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MAKE IN INDIA & ITS IMPACT ON INDIAN ECONOMY Arvind Sakwar

Asst. Prof. (Economics)

Govt. College Pithampur, Dist- Dhar (M.P.)

Introduction:-“Make in India” campaign was launched on 25 Sep 2014 by prime minister with the aim to promote manufacturing in India and provide jobs for new generation. This includes major new initiatives designed to facilitate investment, innovation protect intellectual property, and build best in class manufacturing infrastructure.

Vision of “Make in India”:-The vision of this campaign is to grow this to a 25%

contribution as seen with other developing nations of Asia. In the process government expects to generate jobs, attract much Foreign Direct Investment, and transformation of India into a manufacturing Hub preferred around the world.

Objectives of“Make in India”:- 1. To facilitate investment 2. To foster innovation

3. To enhance skill development 4. To protect intellectual property 5. To build manufacturing infrastructure

Key Sectors of the Campaign:- This campaign focuses on the following 25 sectors of the Economy described under as follows:-

1. AUTOMOBILES

A. Automobiles:-General motors announced an investment of us $1billion to manufacturing automobiles in Maharashtra ie, KIA motors announced and Hundai motors cars announced that they would invest over $1.1billion to build a car manufacturing in Anantpur (ANDHRAPRADESH). This company provide jobs around 3000 people and produce 300,000 cars annually.

B. BK Modi Group announced to set up an electric bus manufacturing plant near Moradabad (UP) in 2016.

C. SAIC (Shangai Automobile Industry Corporation) Motors announced that it invest 2000 crore INR ($300 million ) to build a car manufacturing plant in Halol (GUJARAT).

D. European automobile major PSA announced that in a partnership with CK Birla group, it is going to build a car manufacturing plan in Tamil Nadu at the cost of 7000 Crore INR ($1.03 billion).

E. ElON MUSK a technology, entrepreneur, investor and Engineer (Us) intend to join make in India campaign with all electrical car manufacturing Tesla commencing partial operations by 2019 and full operations by 2020.

2. AUTOMOBILES COMPONENTS

Hitachi announced to set up an auto component plant in Chennai by 2016 with an increase in their India employees from 10000 to 13000.

3. AVIATION

a. French drone manufacturer LH Aviation announced a manufacturing plant in India to produce drone.

b. Thurst Aircraft Pvt Ltd. Singned MOU with government of MH to build an aeroplane manufacturing plant near Plaghar District with an investment of 35000 croresINR($5.2 billion).

4. BIOTECHNOLOGY

Biotechnology in India, Indian chemical Society and Indian Institute of chemical technology announced to increase investment in relevant field to become self-reliant.

5. CONSTRUCTION

Chinese Conglomerate Dalian Wanda Group announced that it would construct an industrial, residential and tourism city in Haryana at the cost of 68000 crores INR ($10 billion). It is deadlocked due to government issues. Construction industry of India shares in GDP around 19%. It is labourintensive sector that provides around49.5 million people get jobs.

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2 6. DEFENCE MANUFACTURING

India & Russia have deepened their make in India defence manufacturing cooperation by signing agreements for the construction of NAVA, ARMY and AIRFORCE.

7. DEFECNE EXPORTS

Bofors artillery guns for $332 crore to UAE, DRDO weapons in Saudi Arabia by 2018.

8. ELECTRONIC SYSTEMS

In this campaign it is included as the demand of electronic hardware expected to rise rapidly various companies acknowledged investment in India to begin manufacturing electronic systems.(Fox com, Huawei, Lenovo, Micromax, Qualcomm, Samsung, Spice group, Vivo mobile India, Wiston, Xiomi, HMD Global Electrical machinery )

9. ELECTRICAL MACHINERY

Germany and Italy also announced investment to increase manufacturing electrical machinery.

10. FOOD PROCESSING

 INFORMATION TECH & BUSINESS PROCESS MANAGEMENT

 LEATHER

 MEDIA & ENTERTAINMENT

 MINING

 In Odisha NLC India signed an MOU with Govt of Odisha to set up a coal mining processing plant at the cost of 7500 crore INR ($) 1.1 billion.

 OIL GAS

 PHARMACEUTICAL

 PORTS

 RAILWAYS

 RENEWABLE ENERGY

 ROADS AND HIGHWAYS

 SPACE

 TEXTILES AND GARMENTS

 THERMAL POWER

 TOURISM & HOSPITALITY

 WELLNESS

11 IMPACT ON FOREIGN DIRECT INVESTMENT

Manufacturing currently account for only 15% on India’s GDP and the government wants to raise that to 25% by 2022. The Modi administration is committed to transforming India to Global manufacturing Hub, while ensuring that manufactured goods, have “Zero defect”

and “Zero effect” on the environment with make in India the government aims to eliminate unnecessary regulations, shorten bureaucratic process, upgrade infrastructure and open up new sectors to FDI.

India’s overall exports (Merchandise and services combined) in April-August 2019- 20 are estimated to the USD 227.36 billion, exhibiting a positive growth of 3.20 % over the same period last year. Overall imports in April-August 2019-20 are estimated to be USD 268.24 billion exhibiting a negative growth of 1.18 over the same period last year.

As per report more than 120 new manufacturing units were set up in the past 04 years, providing employment to voer 45 lakh people in the last financial year 2017-18 itself, over 225 million phones were manufactured and assemble in India, which is about 80% of the total market demand.

In last 5 years FDI has been on an upward immensely since 2013-14. FDI equity inflows have growth by 60.2% between April 2009 March 2014 and April 2014- March 2019. FDI inflows have grown by 63.9 % between April 2009- March 2014 and April 2014- March 2019.

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Table 1 Shows progress of Make in India campaign

Industry 2017-18 2018-19 Percentage change

over previous year Agriculture Forestry and Fishing 79.9 81.3 2.6%

Mining & Quarrying 11.9 12.1 1.3%

Manufacturing 73.5 78.4 6.2%

Electrical, Gas, Water supply & other

utility 9.1 9.9 7.6%

Construction 34.8 38.2 8.8%

Trade, Hotels, Transport, Communication, &service related to Broadcasting

78.5 83.9 6.4%

Financial, Real Estate and

Professional service 78.9 84.7 6.8%

Public Administration, Defence& other

services. 55.6 59.8 7.1%

(Sources:- Financial express & Ministry of commerce & industry) REFERENCES

1. Information article form Times of India.

2. Annual report of RBI.

3. Commercial ministry.

4. Indian Brand Equity Foundation 5. Ministry of commerce & industry.