वापस जायें / Back

Make in India

Prime Minister Shri Narendra Modi started the Make in India scheme in a function organized in Vigyan Bhavan on 25th September, 2014. The main objective of this initiative is employment generation and focus on skill development in 25 sectors ofthe economy. Make in India has four pillars -

1. New wok culture: "Make in India" believes that the most important thing for encouraging entrepreneurship is "Ease of doing business". Many initiatives have been taken to create a business friendly environment. The purpose is to de-license and de-regulate industry.
2. New basic structure: A modern and facilitative economic structure is necessary for development of industry. Government aims at providing modern high speed communication and integrated logistics arrangements and infrastructure based n high technology through industrial corridors and smart cities. Basic infrastructure will be strengthened in industrial clusters.

3. New areas: "Make in India" has identified 25 sectors in construction and basic structure and an interactive web portal and brochures prepared in a professional manner are being used to share information about this.
4. New thinking: Industries are accustomed to look at the government as a regulator. "Make in India" aims at bringing about a complete change in the dialogue of industries with the government to change this thinking. Government will partner with industries for economic development of the country. The attitude of the government will be of a facilitator and not a regulator.

Main Decisions

1. FDI limit in defense sector has been increased from 26% to 49%. Portfolio investment through automatic route in defense sector has been permitted till 24%. FDI up to 100% has been permitted in defense sector in cases where modern and high technology is used.
2. 100% FDI has been permitted in special structural rail projects through automatic route for construction, operation and maintenance.
3. Basic custom duty in 22 inputs or raw materials has reduced the cost of construction in several areas.
4. General Anti Avoidance Rule (GAAR) has been put off for two years.
5. Income tax on royalty and fee for technical services has been reduced from 25% to 10% so that technology can come in easily.
6. The documents required for import and export have been reduced to 3.
7. 14 services are now available in India on a single on-line window through e-bis portal.
8. Investors’ facilitation cell had been made to guide investors.
9. Application process for Industrial license by industrial entrepreneur memorandum has been made 24X7 on e-bis portal.
10. Validity of industrial license has been increased to 3 years.
11. The list of main components of defense products has been removed from industrial license.
12. The requirement of NOC/consent for new electricity connections has been removed.
13. A pentagon of corridors is being made in India to establish India as a world construction center.

Achievements under Make in India –

1. Foreign Direct Investment
   1. The total Foreign Direct Investment (FDI) inflow was USD 160.79 billion between April 2014 and March 2017 – representing 33% of the cumulative FDI in India since April 2000.
   2. In 2016-17, FDI inflow stood at a record of USD 60 billion, highest ever recorded for a fiscal year ever.
2. Ease of Doing Business - India jumped a massive 30 places to 100th in World Bank's ease of doing business rankings.

There is a long list of sector specific projects which have been successfully implemented.