The ‘Make in India’ program was launched by Prime Minister Modi in September 2014 to transform India into a global manufacturing hub. The program set out ambitious goals for the manufacturing sector. These were:
- An increase in manufacturing sector growth to 12-14% per annum over the medium-term.
- An increase in the share of manufacturing in the country’s GDP from 16% to 25% by 2022.
- Creation of 100 million additional jobs by 2022 in the manufacturing sector.
- Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.
- An increase in domestic value-addition and technological depth in manufacturing.
- Enhancing the global competitiveness of the Indian manufacturing sector.
- Ensuring sustainability of growth, particularly with regard to environment.
Two years down the line, it is a good time for some stock-taking in terms of milestones achieved. Today, India’s credibility is stronger than ever. There is visible momentum, energy and optimism. ‘Make in India’ has opened investment opportunities across sectors.
This cover story looks at success stories from the specialty chemicals, textiles and electronics sectors. These sectors have achieved one or more key milestones, such as employment generation, skill enhancement, higher production in India, improved ease of doing business in India, and increase in FDI.
For instance, between September 2014 and November 2015, the Government received `1.20 lakh crores worth of proposals from companies interested in manufacturing electronics in India. India now allows 100% FDI under the automatic route in the chemicals sector. The last 20 items that were reserved for micro, small and medium-scale enterprises were de-reserved in April 2015, opening these areas for greater investment. Government initiatives towards upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and plastic parks are expected to provide state-of-the-art infrastructure for the chemicals and petrochemicals sectors. A `6,000 crores special package was announced for the apparel sector in June 2016. Once fully rolled-out, it has the potential to create one crore new jobs, attract investments worth $11 billion, and generate exports worth $30 billion in the next three years.
We also share the initiative of the CII Manufacturing Council to identify ‘champion’ manufacturing industries that could be top industries globally in the next 10 years, and have the potential to drive double digit growth in manufacturing, and contribute to significant job creation.
Indeed, the Indian manufacturing story is witnessing an unprecedented impetus. Clearly, the time to ‘Make in India’ is now.