Research Paper Economics E-ISSN No : 2454-9916 | Volume : 10 | Issue : 3 | March 2024

MAKE IN INDIA INITIATIVE AND ITS IMPLICATIONS

Nitesh Kumar
Assistant Professor, S.R.T. College, Dhamri (Godda)

ABSTRACT
India’s economy, which ranks tenth in the world in terms of nominal GDP, is among the fastest growing in the world. The
government of India’s “Made in India” initiative promotes investment, innovation, skill development, intellectual property
protection, and the development of manufacturing infrastructure. On September 25, 2014, the Prime Minister of India, Narendra
Modi, unveiled the “Made in India” campaign, an international marketing tactic designed to draw in foreign investment and
establish India as a global hub for manufacturing. This “Made in India” campaign offers guidance to international investors, as
well as timely assistance, pertinent information, and a proactive approach.

With this initiative, the Indian government hopes to make good use of its rapidly growing labor force, realizing that the service
sector—which accounts for between 55 and 60 percent of GDP—cannot be the only engine driving the nation’s economy.

The study’s only data source is secondary. The data came from a variety of sources, including reputable websites, research articles,
government publications from India’s Ministry of Commerce, and various RBI bulletins. “Made in India” will have a significant
impact on industries such as manufacturing, automotive, aerospace, biotechnology, defense, media, thermal power, oil, and gas,
according to the study. As a result, we can conclude that, while “Made in India” arrived at the right time, its implementation still
poses significant challenges

KEYWORDS: Make in India, Growth, Foreign Investors, GDP, International Marketing

INTRODUCTION The “Made in India” logo, which features a lion fashioned from
On September 25, 2014, the Government of India launched the gear wheels, symbolizes the crucial role that manufacturing
“Made in India” campaign, which is a Swadeshi movement plays in the government’s vision and the advancement of the
encompassing 25 economic sectors. The campaign’s main country. We hope this initiative is a huge success. To be on par
goal is to encourage companies to manufacture their products with the developed world in terms of using modern technology,
in India and to invest heavily in manufacturing, with the we need to focus more intently, clearly, and maturely on the
ultimate goal of making India a global manufacturing hub. quality aspects of our products.
India is quickly becoming the preferred global manufacturing
destination for the majority of investors.This strategy is a The youthful population in India poses a dual advantage and
road map for addressing both global and local challenges by risk. India needs to create millions of jobs annually in order
establishing a world-class manufacturing status and knowledge to entice a significant portion of its youth unemployment
infrastructure that will generate additional knowledge required population into the workforce. The Made in India campaign has
for global competitiveness. been launched with great sincerity because the new government
is cognizant of this fact. While the majority of western nations
The manufacturing sector in India is one that has a lot of are rapidly aging, India will continue to be young for the
potential. The goal of this initiative is to boost manufacturing’s foreseeable future.
current 16% GDP contribution to 25% by 2025. Made in
India has unveiled a number of innovative projects aimed at NEED FOR THE STUDY
accelerating manufacturing growth, protecting intellectual In order to maintain its position in the world economy and
property rights, and attracting foreign direct investment. to keep up with the rising standards of living of its people,
India must also improve its infrastructure. Developing the
On the other hand, are the only three sectors where 100% manufacturing sector of a nation is the most straightforward
Foreign Direct Investment (FDI) is permitted under current and crucial way for it to adapt to its surroundings. An increase
policy. Many business owners and entrepreneurs believe that in foreign and domestic investment will expand trade, spur
the “Make in India” initiative will help our economy. The economic expansion, improve infrastructure, and create jobs
primary goal of this scheme is to concentrate on 25 industries. for the nation’s workforce. Therefore, the topic of this study is
Made in India: A Development Initiative.

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International Education & Research Journal [IERJ] 82

 Research Paper E-ISSN No : 2454-9916 | Volume : 10 | Issue : 3 | March 2024

RESEARCH METHODOLOGY potential location for chocolate maker Barry Callebaut, based
The information gathered from secondary sources is used in in Switzerland, to capitalize on the country’s 3,000 crore
the study. The secondary data was gathered from a variety domestic market.
of sources, including government websites, research papers,
journals, newspapers, literature reviews, and different Reserve At the moment, Barry Callebaunt only conducts business in
Bank of India bulletins. the nation on a commercial basis. Beyond just creating jobs,
manufacturing in India will have a significant economic impact.
Make In India Initiative Jobs in related services and the services sector will be generated
Making India the most straightforward location for conducting by it.
business;
Doing away with paperwork, rules, and regulations; Major Achievements Under Make In India
Utilizing technology to advance; According to the Economic Survey 2021–2022, the
manufacturing sector is showing a trend of positive overall
Government departments are merging and integrating. growth in gross value addition (GVA) despite disruptions
Encouraging investment, promoting innovation, strengthening related to COVID-19. In this sector, there were 62.4 million
the development of skills, safeguarding intellectual property, employed people overall in 2019–20.3, up from 57 million in
and constructing world-class manufacturing infrastructure. 2017–18.

REVIEW OF LITERATURE Driven by vaccines manufactured domestically, India became

The article “A Study on the Impact of Made in India on HRM a major exporter of much-needed life-saving vaccines to
Practices - An overview” was written by K. Kalaivani in numerous developing and underdeveloped nations worldwide,
2015. The study contributes to our understanding of how our in addition to quickly attaining 100% vaccination coverage
nation’s HRM practices are impacted by “made in India.” The against COVID-19.
study also discusses how job opportunities and HRM practices
complement one another. The study discovered a strong, The Vande Bharat trains are a prime example of the success
meaningful, and positive correlation between make in India and of the “Made in India” movement. They are the country’s first
HRM practices. domestic Semi High Speed train, with cutting-edge coaches
and a completely new travel experience for passengers.
The article “Make in India - Scheme for Transforming India”
was written by S. Soundhariya in 2015. The paper talks In FY 2021–2022, merchandise exports reached a record-
about the Make in India initiative, including its advantages, breaking 420 billion USD.
disadvantages, necessary adjustments, and some examples of
previous investors. According to the report, India is becoming India is becoming a well-known global center for the production
a popular destination for foreign investment and a major hub of electronics and mobile phones.
for innovation and manufacturing thanks to the Made in India
campaign. Make In India Campaign Main Focus Areas

Seema Sangwan wrote the article “Making Make in India Automobiles Electronic System Ports and Shipping
Realism: The Role of FDI” in 2015. This study focuses on the
Automobiles Food Processing Railways
growth caused by the rise in the FDI rate, as well as changes
Components
in the FDI rate following Modi’s implementation of Made
in India. The research discovered a strong link between FDI Aviation Entertainment Road and High-
inflows and industrial output. According to Rishabh Bhatia’s ways
(2018) article, “Make in India: A Quantitative Approach,” the Biotechnology Leather Renewable Energy
government has been largely successful in establishing India Chemicals Media and Enter- Space
as a hub for global manufacturing, not only through slogans tainment
and propaganda, but also through incremental changes made to
Contruction Mining Textiles and Gar-
every aspect of the economy.
ments
IMPLICATIONS OF MAKE IN INDIA Defence Manufac- Oil & Gas Thermal Power
Home appliance manufacturer Bosch and Siemens today turing
announced the opening of their first manufacturing facility in Electrical Machin- Pharmaceuticals Tourism and Hos-
India, with the goal of using the country as a hub for exports. ery pitality
The biggest exporter of consumer electronics from Japan is Wellness Information Technology (IT) and Busi-
currently considering a move to India. It appears that the Made ness Process
in India campaign arrived at the ideal moment. Numerous Manufacturing (BPM)
large international corporations have already indicated their
interest in establishing production facilities in India. As part
of its global expansion plans, India is being considered as a

83 International Education & Research Journal [IERJ]

 Research Paper E-ISSN No : 2454-9916 | Volume : 10 | Issue : 3 | March 2024

Impact on Indian Economy manufacturing industry.

This campaign will have an effect on both the domestic and
global levels. The country’s youth will have more work options CONCLUSION
as the manufacturing sector grows, which will also reduce The GDP of the nation is ultimately all that matters to the
poverty, draw in investments, add value to Indian goods, and people when discussing the effects that manufacturing in
address the growing trade imbalance. It will raise India’s profile India has on the economy. That is, after all, the only thing that
internationally and encourage investors to view the country as an accurately characterizes the state of affairs in the nation. The
opportunity rather than just a market. Therefore, the campaign’s more developed a country is, the higher its GDP. Furthermore,
impact is also well known. If this is done religiously, India will since Mr. Narendra Modi’s campaign is focused primarily on
become one of the world’s leading nations. This facilitates the manufacturing, it stands to reason that it will have a greater
establishment of manufacturing bases by industries in India. effect on the GDP. One of India’s industries with the fastest
Thus, this promotes job growth in India. growth is manufacturing. The Made in India initiative
contributes to India’s global recognition as a manufacturing
Industries frequently create an ecosystem of support around hub and strengthens the country’s economy.
them, which helps small businesses. These industries contribute
to our foreign exchange reserve through their exports. Above In the upcoming years, India’s position among the top 10
all, this kind of initiative helps educate the Indian populace with manufacturing nations in the world has improved by three
vital knowledge about production and manufacturing. With this spots, landing it at sixth. The plan to manufacture in India
initiative, Mr. Modi is essentially inviting wealthy and semi- will stimulate the nation’s electronic manufacturing sector.
affluent nations to come to India and invest in the country’s The significant investment in manufacturing will increase the
future. It’s similar to extending an invitation to other nations nation’s capacity creation.
to establish businesses in India and engage in manufacturing
within our borders. Currently, this initiative has a significant REFERENCES
effect on our nation’s economy. It goes without saying that the 1. K. Kalaivani “A Study on the Impact of Make in India on HRM
establishment of large corporate branches here will have an Practices – An overview”. Indian Journal of applied research,
immediate impact on India’s GDP. Volume 5 issue 4 April 2015.
2. Dr. K. V. Ramana “Make in India Illusion or Possible Reality
Project?” International Journal of Academic Research, April-
India’s economy is greatly impacted by the numerous foreign June, 2015.
businesses investing in the Made in India initiative. It goes 3. S. Soundhariya “Make in India - Scheme for transforming India”
without saying that the establishment of large corporate Global Journal for Research Analysis (GJRA), September, 2015
branches here will have an immediate impact on India’s GDP. 4. Seema sangwan “making Make in india a realism: role of FDI”,
The primary point is that the manufacturing sector is the focus, International Journal Applied Research, 2015.
and the majority of Indians are middle-class or lower middle- 5. Rishabh Bhatia “Make In India: A quantitative approach”,
class. Therefore, the upper class of society will be the only target International Journal of Applied Research, 2018.
market for the goods produced by international corporations. 6. Handbook of Statistics on Indian Economy. Reserve bank of
India, 2017
7. https://en.wikipedia.org/wiki/Make_in_India
Major Challenges of Make In India 8. http://www.makeinindia.com/eodb
India requires financial resources to develop its industries, 9. https://www.ibef.org/research/india-study/make-in-india
which require infrastructure. This calls for more funding,
which is a significant obstacle in and of itself. India’s banking
institutions are unable to provide large loans to businesses
unless their balance sheets are cleared. Less money is invested
in infrastructure if the government gives banks more money.
India can begin manufacturing there, but they are unable to add
more jobs because global manufacturing could be replaced by
robots and they would still be able to compete.

India is lagging behind in providing workers with skill

training. The main issues facing India’s industrial landscape
are the scarcity of facilities for vocational education and
training. Large expenditures in research and development were
necessary for industry to be long-term globally competitive,
but Indian businesses have been sluggish to adopt this strategy.
India needs to be prepared to address factors that negatively
impact the manufacturing sector’s competitiveness. India ought
to be prepared to grant tax breaks to businesses that establish
branches there. The Made in China and Made in India campaigns
will be continuously contrasted. India needs to continuously
improve its performance to surpass China’s hegemony in the

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