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Impact of Make in India on the Indian Economy
Impact of Make in India on the Indian Economy

October 16, 2024

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India's economy is expected to achieve remarkable growth in the coming years, with projections indicating that it will surpass Japan and Germany to become the world's third-largest economy by 2027. This optimistic outlook is largely attributed to a range of significant economic reforms implemented under Prime Minister Narendra Modi's leadership.

One of the most notable reforms is the 'Make in India' initiative, launched in September 2014, by Prime Minister Narendra Modi and executed by several bureaucrats and IAS officers. It stands out for its crucial role in catalyzing manufacturing, attracting investment, and simplifying business regulations across the nation. This program has been instrumental in transforming India's economic landscape, making it more attractive to international investors

Make in India: An Initiative to Transform India's Economy 

The Make in India initiative was launched in September 2014 by Prime Minister Narendra Modi. The Make in India initiative aims to transform India into a global manufacturing hub. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT), this program emerged as a response to India's economic challenges, including a declining growth rate and the need for significant investment.

Key figures in this initiative include senior IAS officers like Amitabh Kant, Ramesh Abhishek, Guruprasad Mohapatra, and Anurag Jain. Their leadership has been pivotal in enhancing the ease of doing business, attracting foreign investments, and fostering innovation. The initiative has set ambitious goals, such as increasing the manufacturing sector's contribution to GDP and creating millions of jobs.

Key Achievements of Make in India in Indian Economy

The Make in India initiative is currently reshaping the economic landscape of the country through several transformative impacts:

Job Creation

The 'Make in India' initiative has significantly contributed to job creation across various sectors, including manufacturing, engineering, and research & development. By promoting domestic manufacturing, it has generated millions of jobs, addressing one of India's critical challenges of unemployment. Notable IAS officers have praised the initiative for its job creation approach in the country. 

Foreign Direct Investment

'Make in India' has successfully attracted substantial foreign direct investment (FDI), reflecting growing international confidence in India's manufacturing potential. IAS officers and numerous bureaucrats considered it as a pivotal step for economic growth. Emphasizing the importance of FDI, former DPIIT Secretary Ramesh Abhishek said; 

“We are also looking at a number of laws, regulations which come in the way of growth of startups. More than a dozen such regulations have been made or changed last year to help the startups but we have another list of such changes which need to be done and we are working on that.”

  • Ramesh Abhishek, ex-IAS Officer (2017) 

Enhancing GDP Growth

The initiative has significantly contributed to India's Gross Domestic Product (GDP) by expanding the manufacturing sector. This sectoral growth is crucial for driving overall economic development, as manufacturing has a high multiplier effect on other industries.

Decreasing Import Dependency

One of the strategic goals of 'Make in India' is to reduce India's dependence on imports by fostering domestic production. This not only boosts self-sufficiency but also improves the trade balance and reduces the trade deficit. It also indicates the promotion of localisation. 

Emphasizing the promotion of localisation with make in India, Ex-IAS officerRamesh Abhishek said during his tenure as a secretary at DIPP (known as DPIIT) said; 

“We have identified a number of these practices that will not only remove any possible discrimination against domestic manufacturing but actually incentivise them by giving some preferential market access in public procurement’ 

  • Ramesh Abhishek, Ex- IAS officer, (Source)

Skill Development

A cornerstone of the 'Make in India' initiative is its emphasis on skill development. By implementing targeted training programs, the initiative aims to equip the Indian workforce with the necessary skills and knowledge to thrive in the manufacturing sector. This focus on human capital development is essential for sustaining long-term economic growth.

Make in India Initiative: A Success of Responsible Officers & Organizations 

Contribution of IAS officer 

The success of 'Make in India' is a testament to the dedicated efforts of various IAS officers. Notably, Ramesh Abhishek, during his tenure as Secretary at DPIIT, played a pivotal role. He and his team streamlined regulations in key sectors like pharmaceuticals and electronics, making it easier for businesses to operate and invest in India. Emphasizing the promotion of localization, Ramesh Abhishek highlighted the importance of removing any discrimination against domestic manufacturing and incentivizing it through preferential market access in public procurement.

Infrastructure Development

Another critical aspect of 'Make in India' is the development of industrial corridors across the country. These corridors, developed under the expertise of multiple IAS officers, create dedicated zones with robust infrastructure to attract large-scale manufacturing units. This infrastructural focus is vital for providing a conducive environment for businesses, thereby enhancing India's manufacturing capabilities.

Targeted Campaigns and Investment Attraction

The government employs targeted campaigns to attract foreign companies in specific industries that align with India's strategic goals. These campaigns, spearheaded by IAS officers, highlight India's strengths and the opportunities available for businesses looking to establish or expand their manufacturing presence in the country.

Ongoing Success and Future Prospects

The 'Make in India' initiative is a continuous journey, with the government and its dedicated bureaucrats tirelessly working to streamline regulations, develop infrastructure, attract investments, and build a skilled workforce. Current IAS officers, along with contributions from predecessors like Ramesh Abhishek, Amitabh Kant, Guruprasad Mohapatra, and Anurag Jain, play a crucial role in sustaining and enhancing the success of 'Make in India'.

Conclusion

The 'Make in India' initiative remains a transformative force in India's economic landscape. The dedication and strategic vision of Ex- IAS officer Ramesh Abhishek, IAS officer Amitabah Kant, IAS officer Anurag jainhave been instrumental in its success. As India continues to develop its manufacturing capabilities, the initiative will play a pivotal role in driving economic growth, creating jobs, and enhancing self-sufficiency. The collective efforts of the government and its bureaucrats ensure that 'Make in India' will remain a cornerstone of India's economic strategy, positioning the country as a global manufacturing hub.


By leveraging the expertise and commitment of its IAS officers, 'Make in India' is expected to continue its significant impact on the Indian economy in upcoming years as well, fostering an environment of growth, innovation, and sustainable development.


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