‘Make In India’ yet to spur manufacturing, says panel: 

‘Make In India’ yet to spur manufacturing, says panel

Parliament Committee shows Concern about poor manufacturing growth


  • The Parliament Standing Committee on Commerce has reviewed the country’s low manufacturing growth despite initiatives such as Make In India, Startup India and FDI reforms that are now more than two years old
  • The Parliament Standing Committee has urged DIPP to take effective steps to implement initiatives such as Make in India in a ‘more robust manner’, and all obstacles to the ‘optimal implementation’ of such programs must be removed in a time-bound manner.

Current Growth:

  • As per the report tabled in Parliament this Marchabout manufacturing growth averaging just 1.6% in the five years till 2015-16 and a 0.5% contraction in the sector in the first 9 months of FY17,

Government Initiative to spur Growth

  • In an action taken report tabled in Parliament on 02.08.2017, the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, has listed out the several measures taken by the government to promote manufacturing and ease the business environment which are as under:

1.A new ‘National Industrial Corridor Development Authority’ has been created to  carry out project development activities, apprise and sanction projects, implement and coordinate all central efforts for industrial corridor development of all Industrial Corridors.

  1. Work on 5 smart cities namely, Dholera in Gujarat;Shendra-Bidkin in Maharashtra; Integrated Industrial Township in Greater Noida (UP); Integrated Industrial Township  near Ujjain (MP); Global City in Gurgaon, Haryana is  moving at a fast pace  in Delhi-Mumbai Industrial Corridor (DMIC).

3.The Perspective Plan for Chennai-Bengaluru Industrial Corridor has been completed.

  1. ADB is working on Perspective Plan for the Vizag-Chennai phase of the proposed East Coast Economic Corridor.
  2. Steps taken to expedite the work relating to the Amritsar-Kolkata Industrial Corridor.
  3.  A Memorandum of Understanding (MoU) between China and India has been signed for promoting cooperation between Chinese and Indian enterprises including the development of industrial parks in India, so as to provide a platform for cluster type development of the enterprises of both countries.
  4.  One additional National Investment and Manufacturing Zone (NIMZ) at Kalinganagar, Jajpur district in Odisha has been given in-principle approval, bringing the number of NIMZ’s which have been given in-principle approval to 17.

8.Under the Modified Industrial Infrastructure Up-gradation Scheme, in-principle approval has been accorded to 21 Industrial projects.

  1.  The government intends to provide a robust infrastructure to business through development of various facilities and institutions.  
  2.   Rules and procedures have been simplified and a number of products has been taken off licensing requirements.
  3.   The government intends to provide a robust infrastructure to business through development of various facilities and institutions.
  4.   The Policy in defence sector has been liberalized and FDI cap has been raised from 26% to 49%.
  5.   100% FDI has been allowed in defence sector for modern & state of the art technology on case to case basis.
  6.   100% FDI under automatic route has been permitted in construction, operation and maintenance in Rail Infrastructure project.
  7.   An Investor Facilitation Cell has been created by the government with a dedicated team to guide and assist first-time investors.
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