Government Policies and Interventions

Make in India

India for long did not have a robust manufacturing base. Some of the issues that plagued domestic manufacturing is  the non availability of Technology and Capital. This problem is aimed to be alleviated by Make in India initiative.

It aims at 25 key sectors of the economy like Aviation, Automobiles, Biotechnology, Defence Manufacturing etc.,. The Government has permitted 100% FDI in all the above sectors except Space and News Media. Another major hurdle for inviting Foreign companies to invest in India is the Ease of Doing Business.

Why India:

India has got tremendous potential for establishing any new venture. India is the third largest and fastest growing economy in the world. The Demographic Dividend is a unique advantage of India that no other country in the world possesses. Together with the launch of Skill Development Programs the skilled and technical employment needed by the industry can be adequately met.

India’s urban centres are well equipped to provide the necessities for companies For Example, all metropolitan cities in India command a good Urban transport network and other amenities needed to develop a business and with the launch of Smart Cities mission they are about to become innovation hubs and the infrastructural capabilities like one of the largest railway networks in the world, well developed ports and other aviation facilities are major enabling factors.

Government Measures:

  1. The launch of Atal Innovation Mission aims at improving the culture of innovation
  2. The launch of the Intellectual Property Rights Policy 2016 aims at reducing the time taken for Patents and easing the process of awarding Patents.
  3. India improved its rank in Ease of Doing Business to 130 as per the latest trends. It was made possible by improvements on three fronts like starting a business, getting construction permits and accessing electricity.
  4. The initiatives like Dedicated Freight Corridors, Sagarmala (for port led development),Railway modernisation are launched for easing the industry related transport and reducing logistic costs.
  5. A culture of Entrepreneurship is also aimed to be created using Startup India program.
  6. The Skill India program aims at skilling the people to increase their employability.

Performance Appraisal of Make in India: 

The Positives:

+After the launch of this program India became a top destination in the World for Foreign Direct Investment. Many sectors of the economy were benefitted including Defence and Electronics. Companies like Lenovo, Motorola and Flextronics have committed to invest in India.

+The State Governments like Maharashtra and Karnataka also launched programs on similar lines and improved their manufacturing base.


-Though considerable strides have been made, there still remains issues like the investment commitments by companies not getting transformed into actual business.

-Even in the Infrastructure front, India lags behind the rest of the world for higher time required for moving goods and a high frieght and logistic costs.

– The Research and Development has not been satisfactory. There is a need for increasing Government funding to institutions and companies for developing critical and futuristic technologies. This is needed for indigenization of technology.

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