Make in India to Made in India - India’s transformative Journey

What is Make In India?

"Make in India" is a program launched by the Indian government in 2014 to encourage domestic manufacturing and turn India into a global manufacturing hub.

Make in India is a major national program of the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure in the country. The primary objective of this initiative is to attract investments from across the globe and strengthen India’s manufacturing sector. It is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.

The Make in India program is very important for the economic growth of India as it aims at utilizing the existing Indian talent base, creating additional employment opportunities, and empowering the secondary and tertiary sectors. The program also aims to improve India’s rank on the Ease of Doing Business index by eliminating unnecessary laws and regulations, making bureaucratic processes easier, and making the government more transparent, responsive, and accountable.

“I want to tell the people of the whole world: Come, "Make in India". Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have skill, talent, discipline, and the desire to do something. We want to give the world an opportunity that comes make in India,” Prime Minister of India, Mr. Narendra Modi, said while introducing the program in his maiden Independence Day speech from the ramparts of the Red Fort on August 15, 2014. The initiative was formally introduced on September 25, 2014, by Mr Modi at Vigyan Bhawan, New Delhi, in the presence of business giants from India.

The focus of the Make in India program is on 25 sectors.

Make in India Focus Sectors:

• Automobiles & Components

• Aviation

• Biotechnology

• Chemicals

• Construction

• Defense manufacturing

• Electrical machinery

• Electronic systems

• Food processing

• IT & BPM (Business Process Management)

• Leather

• Media & Entertainment

• Mining

• Oil & gas

• Pharmaceuticals

• Ports & shipping

• Railways

• Renewable energy

• Roads & highways

• Space

• Textiles & garments

• Thermal power

• Tourism & hospitality

• Wellness

Goals of "Make in India"

• Boost Manufacturing: The initiative aims to significantly increase the manufacturing sector's growth rate in India, creating more jobs and exports.

• Attract Investments: By simplifying regulations and offering incentives, "Make in India" aims to attract foreign companies to set up manufacturing units in India.

• Improve Infrastructure: Developing modern infrastructure, including transportation networks and power supply, is crucial for smooth manufacturing operations.

• Focus on Specific Sectors: The program prioritizes specific sectors, such as automobiles, textiles, and electronics, aiming to make India a leader in these areas.

• Skilled Workforce: Developing a skilled workforce equipped with the necessary training and knowledge is essential for a thriving manufacturing sector.

  

  Why do we need Make in India?

  Making India a manufacturing superpower is the central idea of the ‘Make in India’ campaign, which invites manufacturers from the rest of the world to set their base in India, as many manufacturers from the rest of the world as possible. Here are the basic advantages of having high foreign investment in our manufacturing sector:Employment Opportunities in India The more industries there are in India, the more opportunities will be available for skilled laborers. The unemployment rate in India is as high as 8%, which means that we will soon require around fifty-five million more jobs. Only a handful of Entrepreneurs in India stand out! Do You want to know Why?

Make in India Increase in GDP contribution.

• Shifting Economic Landscape: The service and industrial sectors contribute more to India's GDP, while the agricultural sector's contribution has shrunk significantly.

• Challenge of Agriculture: Although agriculture employs nearly half of India's workforce, it only contributes about 14% to the GDP (down from 16% in 2014).

• Need for Growth in Manufacturing: Compared to developed nations, India's manufacturing sector is lagging. Policies should encourage people to move from agriculture to manufacturing and service jobs.

• Boosting Exports: India's share in global exports is stagnant.

• Skilled Workforce for Competitive Exports: Improving worker skills in manufacturing will lead to better quality products at lower costs, increasing India's global competitiveness.

• Reducing Reliance on Imports: A stronger manufacturing sector can substitute imports with domestically produced goods.

• Overall GDP Growth: Growth in manufacturing will significantly impact India's GDP and transform the job market.

• Manufacturing Sector Expansion: The current 15% GDP contribution from manufacturing has the potential to expand significantly.

How to Make in India Impacts Real Estate?

The "Make in India" campaign's primary objective is to encourage investors and business owners to establish enterprises in India. Eventually, this will make the country a global hub for manufacturing.

It is anticipated that this policy will affect Indian real estate more broadly. The real estate market is predicted to quadruple economic growth to a value of USD 1 trillion by 2030. This will surely account for 13% of India's GDP by 2025.

Positive Impacts:

• Increased Demand: As companies set up manufacturing units in India, there's a surge in demand for commercial office spaces, warehouses, and factory buildings. This can lead to increased rental yields and property values in industrial areas.

• Infrastructure Development: To support manufacturing, the government invests heavily in infrastructure projects like roads, railways, and power grids. This development often spills over into nearby residential areas, making them more attractive and leading to price appreciation.

• Urbanization: "Make in India" attracts migrant workers to industrial hubs, leading to increased demand for residential housing, particularly affordable units. This benefits developers focusing on this segment.

• Foreign Investment: The initiative aims to attract foreign companies, which can bring in foreign direct investment (FDI) into the real estate sector. This can lead to funding for new projects and development in previously neglected areas.

Thus, India’s advancement unquestionably lies in the manufacturing sector because of its different lucrative opportunities. In the meantime, a few infrastructural changes in the procedural aspects should be made to start the new segment. Existing assembling units and territories should be brought under a rundown and arranged to mind their end-use. India has the potential of becoming an assembling hub, exemplified by Bengaluru’s fast development into the next “Silicon Valley,” which used to be a far-off dream. India is currently one of the most influential programming markets. Hence, such progressive changes in the infrastructural prerequisites and encouraging procedural change would help in the smooth transition of India into a ‘developed’ nation.

Let's explore further the essential elements of the entrepreneurial mindset!!!