MAKE IN INDIA

Prepared By

Rituparna Biswas (18A1HP086)

Saikat Choudhuri (18A2HP410)

Sanchita Thakur (18A3HP644)

Cyril Thomas (18A3HP653)

Shalini Shaw (18A2HP438)

Shubham Sahu (18A2HP415)

Institute Of Management Technology, Hyderabad

September 2018
 MAKE IN INDIA

Prepared for

Prof. Tulika Sharma

Professor

Business Communications

By

Prepared By

Rituparna Biswas (18A1HP086)

Saikat Choudhuri (18A2HP410)

Sanchita Thakur (18A3HP644)

Cyril Thomas (18A3HP653)

Shalini Shaw (18A2HP438)

Shubham Sahu (18A2HP415)

Institute Of Management Technology, Hyderabad

September 2018
 LETTER OF TRANSMITTAL

September 7, 2018

Prof. Tulika Sharma

Department of Business Communication,

IMT Hyderabad, Telangana

Subject: Submission of Business report on “Make In India”

Dear Prof. Tulika,

Here is the assignment that we were assigned on as per your request. The report has been
completed by the knowledge that we gathered from the course “Business communication”.

We have tried our best to complete this assignment meaningfully and correctly as much as
possible. However, If you need any assistance in interpreting this assignment, please do contact
us without any hesitation.

We hope, you find this report satisfactory.

Sincerely Yours,

Rituparna Biswas (18A1HP086)

Saikat Choudhuri (18A2HP410)

Sanchita Thakur (18A3HP644)

Cyril Thomas (18A3HP653)

Shalini Shaw (18A2HP438)

Shubham Sahu (18A2HP415)

i
 ACKNOWLEDGEMENT

We would like to express our deepest appreciation to all those who provided me the possibility to
complete this report on “MAKE IN INDIA”. A special thanks to our team members, who helped
me to assemble the parts and gave suggestion about the task “REPORT ON MAKE IN INDIA”.

Last but not least, we would like to pay our deep sense of gratitude to Professor of Business
Communications (IMT Hyderabad), Prof. Tulika Sharma, who has invested her full effort in
guiding the team in achieving the goal.

ii
Contents
Executive summary -----------------------------------------1

Introduction ------------------------------2

Objective---------------------------2

Aim---------------------------2

Indian Manufacturing sector------------------------------- 3

Choosing manufacturing sector--------------------------------3

Some major highlights of Make in India--------------------------4

Some major sectors involved in Make in India--------------------------4

Foreign investment in Indian Manufacturing----------------------------5

Expected contribution of Make in India--------------------------------5

Various growth cycles of Make in India---------------------------------6

Conclusions----------------------7

Recommendations-------------------------7

References-------------------------8

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 EXECUTIVE SUMMARY

On 25th September 2014, Our Honorable Prime Minister Sri Narendra Modi launched MAKE IN
INDIA initiative with ultimate objective to make India a manufacturing hub, create jobs and
boost economy.

Manufacturing contributes 16% of India’s GDP compared to 56% that comes from services and
28% from agriculture so it is important for India to reallocate its resources to manufacturing
sector.

Key Sectors: 25 key sectors have been identified for enhancing the Make In India initiative but it
focuses on General Manufacturing, Electronics, Automobile, Metals and metallurgical products,
Pharmaceuticals and Biotech, Food Processing, Agro, Heavy Engineering, Information
Technology, Services sector .
The question was, whether the laws and processes existing were consistent with this new
campaign? Will it ever succeed? Before that it’s necessary to define the success of a country. Is it
the high FDI or GDP? No, a country becomes successful when the people earns enough to
sustain their life. The aim was not to attain a bigger GDP but a better GDP keeping in mind the
needs of the poorer and weaker sections of the society.

The motive of ‘Make in India’ was used as a driver to create productive jobs and remove
poverty. The FDI went up and the industrial production also increased considerably. Many
international companies like BMW, Tetrapak, Air Bus Group, Foxconn also made investments in
the automobile, aviation and electronic sector. Also, this campaign collaborated with Franklin
Templeton’s ‘Build India’ project to provide basic amenities to the common men.

To draw an economic plan like this for a country like India is quite a difficult task and the
campaign has take up this challenge to change our country. This was a step in the right direction
since it has delivered some noteworthy accomplishments but still a lot needs to be done.

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Introduction:
“Make in India” is a Swadeshi movement which has covered 25 sectors of economy. It was
launched by Prime Minister Shri. Narendra Modi on 25 September 2014. The main motive of
this program is to encourage companies to manufacture their products and also increase their
investment in India. The sectors which are covered in this program are chemicals,
Pharmaceuticals, IT, ports, design manufacturing, automobiles, railways, wellness, tourism and
hospitability, textiles, leather, auto components, renewable energy, mining, bio-technology, and
electronics. In the World Bank’s 2017 ease of doing business Index India jumped to 100th place
out of 190, from 130th in 2016. As of these results, now there is competition between states of
India to improve their ranking in the index of “ease of doing business”. Currently Telangana,
Haryana, Chhattisgarh, West Bengal and Odisha are the top five states.

Prime Minister Narendra Modi came with a key phrase of make in India “Zero Defect and Zero
effect”. Which means let’s think about making our product “zero defect” and “zero effect” so
that our product won’t have any harmful effect on the environment?

Objective:

1. The main objective of this program is to make India a renowned manufacturing hub for key
sectors. All the companies across the world would be invited to set up the factories and to make
investment in India.

2. Creating the world class zero defected products by using the India’s Highly talented and
skilled manpower.

3. To ensure the 15% contribution of gross domestic products is increased to 25% in next few
years in the manufacturing sector.

Aim:

1. To create the jobs for the unemployed peoples and to boost economic growth.

2. To urge foreign companies and as well as local companies invest in India.

3. The main aim of this program is to make India into a global manufacturing hub.

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Indian manufacturing sector
Indian manufacturing sector faces some critical challenges in the term of power, ports, railroads
and roads to shortage in human capital, manufacturing in India feels like lose ground behind the
targeted goals. In 2013 Indian manufacturing sector’s contribution was 16% of GDP(increased in
last 2 years because of “Make in India” now it has contribution almost 24%) and service sector
contributes approx. 53% to GDP. In most rapidly developing economies, manufacturing sector
contributes almost 25-40% such as China’s manufacturing sector contributes 32%, Thailand’s
34% and Germany’s 22%.This huge gap in terms of contribution to GDP makes imperative for
India to focus on manufacturing and to bring it close to 25% over the next decade.

Contribution 2009-10 2010-11 2011-12 2012-13 2013-14

to India GDP
in (%)
Service sector 57% 57.5% 57.42% 58% 60%
Manufacturing 16% 16% 16.28% 15.76% 14.9%
sector

The above table represents the previous year’s data of sectors contribution to GDP.

In India 75% of population is educated in middle school or below. There is a boom in the service
sector but the most of the Indian population is low qualified and don’t have that much knowledge
to work in the service sector. To generate employment for these type of population the
manufacturing sector has the adequate to absorb the larger labor pool.

Choosing manufacturing sector -

1. The main reason for choosing the manufacturing sector is most of the Indian population is less
qualified and unskilled which is engaged in the manufacturing sector.
2. As per the researched data in 2005-12, 15 lakh jobs were created, 10 million of Indian people
join its workforce.
3. In the rapidly developing economy countries the most of the contribution is from
manufacturing sector and in India this sector was contributing only 16 % in GDP which has to be
25% for a better economy.

Make in India – “Make in India”, an initiative by the government to produce more

employment in the manufacturing sector. The connotation of Make in India, does suggest the
previously used “Made in India”, where ‘Make’ means the process to be carried out in India
while opening the doors for the global companies to invest in India. The objective of this
program is to take manufacturing sector to 25% contribute to GDP in upcoming decades whereas
before make in India it was contributing 16%.

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Some Major highlights of “Make in India”:

1. Invest India cell- An investor facilitation cell will act as the first reference point on all
the aspects of regulatory and policy issues for guiding foreign investors to assist them in
obtaining regulatory clearances. This cell will act like a provider assistance of foreign
investors to the time of departure and the time of arrival.
2. Services and security clearances – Central government services are being integrated
with e-Biz which is a single bid online portal. The ministry of home affairs has been
asked to give all security clearances to investment proposals within 3 months.
3. Business queries- Dedicated cell has been introduced so that every query would be
answered by that web portal (([http://www.makeinindia.com) with a back- end support
team to answer all the queries within 72 hours. They also provide the boast of an
exhaustive list of FAQs answers.
4. Interactions with the users - A new pro- active approach deployed to get to know the
visitors location. The visitors who has registered on the website or raising the queries will
get the relevant information and newsletter.
5. Easing policies and laws- Many of the defense item has been de- licensed and validity of
industrial license has been extended.

Some major sectors involved in Make in India:

1. Information technology & BPM –

Reasons to invest-

IT-BPM constitutes 9.5 % of India’s GDP and contributes to public welfare.

India’s IT industry amounts to 54% of the world market, due to exports.

60% of India’s Firms use the testing services for their products.

2. Manufacturing - Electrical machinery –

Investments in electrical machinery industry for research and development are among the largest
in India’s corporate sector.

Manufacturing sector of India is becoming more competitive with respect to their manufacturing
and designs.

“Power for All” scheme plan will add 93 GW of capacity by 2022.

Some foreign investors in this sector-

MHI (Japan) Schneider Electric (France)

Hitachi (Japan) Babcock (UK)

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 Foreign investment in Indian Manufacturing:

Year Annual FDI Inflows (US $Billion)

2010-2011 4.79
2011-2012 9.34
2012-2013 6.53
2013-2014 6.38
2014-2015 9.61
2015-2016 8.44

3. Food Processor-
India is No.1 In the world in production of mangoes , papayas, ginger , whole fresh buffalo milk,
goat milk .

Number 2 in production of sugarcane, Coconuts etc.

The cost of manpower is relatively low as compared to the other countries.

Expected contribution of “Make in India”

1. In India employment will increase because of Make in India. It will enlarge the purchase
power of common man, mitigate the poverty and also expand the consumer base for companies.

2. It will also improve the foreign exchange reserves of India which is very important for a better
economy.

3. Manufacturing sector led the growth of per capita GDP. India ranks 7th in terms of nominal
GDP and 131st in terms of per capita GDP. This initiative hopes to increase GDP growth and tax
revenue.

4. The investment of global companies will bring creative skills along with the foreign capital
and technical expertise.

5. FIIs (relative to FDI) plays a dominant role in Indian Markets which is highly volatile in
nature .Though Make in India will give an unprecedented boost to FDI flows.

6. Make in India also aims at high quality standards and minimizing the impact on the
environment.

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 Various Growth cycles of MAKE IN INDIA:

Make in
Growing Lower
India
middle class Imports
Growing Higher With higher tax
consumption Exports revenue higher
Growing foreign reserve
Increased Lower
middle
Demand INDIA’S WAY Trade
class Stable currency
would TO VARIOUS
GROWTH Higher credit
ensure
CYCLE rating
lower
crime More Government
rates and factories can spend on
Higher GDP
prospero infrastructure
Built more
us Growth better upgrade to
Employment
support growth
Credit rating
Higher wage
growth Stable
currency

Higher FDI inflows

Investment in Communicable Higher FDI

would mean Higher Domestic Interest as
well

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Conclusion
The make in India initiative aims to facilitate investment, foster innovation, enhance skill
development, protect intellectual property and build a sustainable ecosystem for the
manufacturing infrastructure in the country. A great deal of effort was made to reform
regulations in India to create a more business friendly environment, these efforts have yielded
results as for the first time ever India jumped 30 positions to become the top 100th country in
terms of ease of doing business, this has further led to creation of millions of jobs. Foreign Direct
Investment (FDI) policies and procedures have been simplified and liberalized progressively,
helping to increase FDI inflow. In 2016-17, FDI inflow stood at a record of USD 60 billion,
highest ever recorded for a fiscal year ever. During the years, since its inception make in India
has witnessed significant achievements across different domains such as aerospace & defense,
aviation, basic metals and cement, biotechnology, capital goods & automotive, chemicals &
petrochemicals, food processing, skill development, ICTE manufacturing, MSME and railways.
Make in India initiative has helped India to achieve rapid growth and forming a diversified
economic structure making India a progressive economy.

Recommendations
Although Ease of doing business (EODB) ranking of India has improved it is still nowhere near
its targeted goal of moving India to the 50th slot in the EODB index. To achieve this ambitious
goal, India should further reform regulations to facilitate easier approval of projects and setup
hassle free clearance mechanism.

To make India a manufacturing hub any unfavorable factors must be removed, India should
consider giving tax concessions to companies, this would help in attracting companies to India as
well as developing a positive relationship with existing companies manufacturing in India.

Focus on Micro, Small and Medium Enterprise (MSME) sector as the capacity of MSME to
drive the economic growth and development at regional, national and global levels cannot be
overstressed. For India, which is aiming to retrace its path towards the high growth part MSME
assumes a pivotal position in driving the growth; it contributes to 7% of the total GDP and
employs over 117 million people. It is also responsible for 45% of the total manufacturing output
and 40% of the exports from India. Hence, it is essential for make in India to be more focused
towards this sector, special policies should be made to give privileges to MSME companies to
drive growth in this sector which would also help in creating jobs.

China capturing India’s automotive space is the biggest threat to make in India. India should
constantly try to improve on its strength in the manufacturing sector to combat the world’s
manufacturing hub, China. It should capitalize on its low-cost labor to drive companies to setup
their manufacturing unit in India.

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References:

 Home - Make In India. (n.d.). Retrieved from http://www.makeinindia.com/home

 "Make in India". An academic perspective- Prof Partha Priya Dutta | IIM Calcutta.

(n.d.). Retrieved from https://www.iimcal.ac.in/make-india-academic-perspective-

prof-partha-priya-dutta

 (PDF)Make in India: A Step towards Development. (2015, November 4). Retrieved from

https://www.researchgate.net/publication/318094636_Make_in_India_A_Step_towards_

Development

 Why Narendra Modi's Make in India is indeed a step of a lion. (2014, September 26).

Retrieved from https://yourstory.com/2014/09/make-in-india-narendra-modi

 Make in India. (2018, August 22). Retrieved from

https://en.wikipedia.org/wiki/Make_in_India

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