Envisioned by the dream of making India a global leader in manufacturing goods; the BJP led government has launched “Make in India” initiative in the year of 2014. The program focuses on 25 specific industries and the creation of an efficient and sustainable conducive environment for the manufacturing sector. The government aims to take the GDP contribution of the manufacturing sector to 25% from 16%. It also aims to put India at the apex of foreign direct investment (FDI) charts by leaving china and the USA behind.
The growth of the manufacturing sector is dependent not just on operational ease but also on the availability of ample and skilled human resources along with a robust growing domestic demand for products. India is the 2nd most populated country with the youngest crowd with an average age of 29 years with literacy levels to reach nearly 100% by 2025, where people are mostly middle class with good buying potential. It also is the 2nd largest internet user country which is a very good opportunity for e-commerce setups. It’s the 3rd largest fast-growing economy with substantial infrastructure with the 2nd largest railway or road network and also well connected through water route to the rest of the world.
The infrastructure is only set to improve with government offering and setting up an environment for the manufacturing sector. Industrial corridors are like Delhi-Mumbai industrial corridor (DMIC) is being developed. Gurgaon which is also a hub in this chain has industrial townships like Reliance industrial plots in Gurgaon. Government is also working upon dedicated freight corridors and along the corridors setting up large chunks of dedicated industrial space like the industrial plot at Reliance MET and increasing rail and road and port connectivity with modern and more efficient techniques.
Government has also improved business processes and procedures like power connection provided within a mandated time frame of 15 days instead of 180 days. The validity of industrial license extended to 7 years from 3 years and Permanent Residency Status for foreign investors for 10 years to name a few. There are major reforms in FDI too government has allowed up to 100% FDI inflows in sectors like civil aviation, broadcasting, construction, railways, telecom, and retail.
Private companies supplying stock to the Indian Railways must look at manufacturing locally as importing of stock will be prohibited by the government. Government tenders worth 25000 crores were either canceled or modified by the government to promote ‘Made in India’ goods. India is also close to finalizing a direct subsidy plan for battery manufacturing and last but not the least with the reelected same government who launched Make in India project the rest is assured in the favor for the manufacturing sector as seen in the budget 2019.