Make in India is all about harnessing this demand and boost the Indian economy through --- Making India a manufacturing hub -- improve World Bank’s Ease of Doing Business ranking

2. The Way Ahead for Excellence
in
Manufacturing and Service Sector
Key Note Address at SIES
on 14 Feb-2014

3. Why “Make in India”???
 India had fallen to a lowly 134th rank out of 189 countries
this year (three down from 2013) in the World Bank’s Ease
of Doing Business rankings
 Currently, it takes 12 procedures and 27 days to start
business, 35 procedures and 168 days to get construction
permits and 1420 days to enforce contracts in India.
 Manufacturing value added as a share of GDP in 2013 is
12.89% which is lower than Pakistan (13.89%) and
Bangladesh (17.55%)
 India’s chronic infrastructure and logistics deficit with
inefficient transport networks makes it tough for
manufacturing companies to achieve just-in-time
production
 From furniture and gadgets to industrial equipment, India
is importing almost all products from its neighbor, even
yarn for saris
 It is estimated that over 99 per cent of Bangalore silk saris
are being made with Chinese silk yarn
 And so on ……..

4. India vis-à-vis China
 India exported goods of worth $15 billion to China
and imported goods of worth $51 billion in 2013 from
China
 Confederation of Indian Industry estimates China
enjoys cost benefit of about 10% over Indian
manufacturing
 Labor Market Efficiency out of 138 countries is 99 for
India and 34 for China
 Manufacturing contribution to GDP 12.9% for India
and 31.8% for China
 Share in global manufacturing exports 1.6% and 17.5%
respectively
 Share in global manufacturing employment 5.6% and
34% for China

5. Make in India – Right time to get in
 An index of manufacturing costs created by the Boston
Consulting Group (BCG) of the world’s 25 biggest
exporters shows China’s traditional cost advantage is
now under pressure
 Just-in data from the International Monetary Fund show
that China is no longer the largest trade surplus economy
in the world
 Here is an opportunity “Make in India” must tap in
 U.S. Bureau of Labor Statistics publishes:
 Average labor compensation in India’s manufacturing sector
increased only, from $0.68 an hour in 1999 to $1.50 an hour
in 2014
 The average compensation in China’s manufacturing sector
rose 20 percent year-on-year in the same period to $3 an
hour
 A nearly 500-million-strong labor force comprising
unskilled workers and English-speaking scientists,
researchers, and engineers

6. Make in India - – Right time to get in
 In 2013, only 15% of GDP which need to be enhanced to
25% by 2022 for creating more job opportunities
 India rich in natural resources
 Labor is aplenty and skilled labor is easily available given
the high rates of unemployment among the educated class
of the country
 With Asia developing as the outsourcing hub of the world,
India is soon becoming the preferred manufacturing
destination of most investors across the globe
 10% growth is targeted annually fro manufacturing sector
Make in India is all about harnessing this
demand and boost the Indian economy

7. M A K E I N I N D I A - A m a j o r i n i t i a t i v e
 Making India a manufacturing hub and economic
transformation in India
 Eliminating the unnecessary laws and regulations
 Making bureaucratic processes easier and shorter
and make government more transparent,
responsive and accountable
 Facilitating the time-bound project clearances
through a single online portal and by the eight-
members team to answer queries within 48 hours
 Addressing key issues including labor laws, skill
development and infrastructure
 Create 100 million jobs by 2022

8. M A K E I N I N D I A - O b j e c t i v e s
 PM Narendra Modi launched make in India announced on 15
August 2015 and on 25 September 2014
 National program designed to transform India into Global
Manufacturing Hub
 Converting India to self-reliant country
 Make in India programme includes major new initiatives
designed to
 Attract investment
 Foster innovation
 Enhance skills development and create job opportunities
 Protect Intellectual Property
 Strengthen manufacturing sector
 Identified 25 key sectors to focus on

9. 25 Key Sectors – Manufacturing and Services

10. Make in India Framework
 New processes
 New infrastructure
 Sectors
 New mindset
 IPR Protection
Creating conducive environment for
manufacturing and services sectors to enable
Indian economy to be among the top ones

11. M A K E I N I N D I A - N e w p r o c e s s e s
 Licenses application licenses on line
 Self-certifications
 De-regulation for duals items used in defense or
other industries
 eBiz – a single window IT platform for services
 Clearances on-line – Environmental, etc.
 Returns through online unified forms
 Checklists of required compliances
 Electronic registers to replace hard-copy registers
 Check on Inspector Raj - No inspections without
approval of HOD

12. M A K E I N I N D I A - N e w i n f r a s t r u c t u r e
 Industrial corridors and smart cities
 New Industrial clusters to promote advanced
manufacturing
 17 National Investment and Manufacturing Zones
 Nurturing Innovation through
 Compliance with global standard
 Online processes
 Skill development through
 Augmentation of training infrastructure
 Already more than 51,216 youths trained with annual
capacity of 144,000 youths
 4 branches for Footwear Design and Development

13. M A K E I N I N D I A - N e w S e c t o r s
1. Policy in Defense sector liberalized and FDI
cap raised from 26% to 49%.
2. Portfolio investment in Defense sector
permitted up to 24% under the automatic
route.
3. 100% FDI allowed in Defense sector for
modern and state of the art technology on
case to case basis.
4. 100% FDI under automatic route permitted
in construction, operation and maintenance
in specified Rail Infrastructure projects
such as:
a) Suburban corridor projects through PPP
b) High speed train projects
c) Dedicated freight lines
e) Rolling stock including train sets and
locomotives/coaches manufacturing and
maintenance facilities
f) Railway electrification
g) Signaling systems
h) Freight terminals
i) Passenger terminals
j) Infrastructure in industrial park pertaining to
railway line/sidings including electrified
railway lines and connectivity to main railway
line
k) Mass Rapid Transport Systems
5. Easing of norms underway for FDI in the
Construction Development sector

14. M A K E I N I N D I A - N e w M i n d s e t
 Most importantly, the Make in India program represents
an attitudinal shift in how India relates to investors:
 Not as a permit-issuing authority, but as a true business
partner
 Dedicated teams that will guide and assist first-time
investors
 Focused targeting of companies across sectors

15. Make in India – Services Sector
 India has the second fastest growing services sector in
the world with a compound annual growth rate at 9
per cent, just below China's 10.9 per cent, during
2001 to 2012, the Economic Survey said
 Access to banking services
 Expanding the penetration of banking infrastructure into
rural areas to make access easier and more affordable
for account holders
 Potential solutions include creating low-cost service
models that offer incentives to multiple industry
participants (such as telecom providers, banks, and
payment providers), improving digital literacy, and e ..
 Use of technology-enabled solutions such as massive
open online courses (MOOCs) to enhance the reach
and quality of vocational education is gaining ground

16. MAKE IN INDIA - What is in news?
http://zeenews.india.com/ on January 17, 2015
"Japan will contribute to Prime Minister Narendra
Modi's 'Make in India' initiative to support India in
becoming a base of economic growth for the Indo-
Pacific region and the world," Japanese Foreign
Minister Fumio Kishida said
in.reuters.com on Feb 5, 2015
Chinese telecom company Huawei Technologies Co
Ltd has invested $170 million (Rs 1,037 crore at 1
dollar = 61 rupees) to open a research and
development centre in India as it ties itself to
Prime Minister Narendra Modi's 'Make in India'
campaign, the company said on Thursday.
http://profit.ndtv.com/ on 25 Sep 2014
Reliance Industries Chairman Mukesh Ambani
on Thursday described The launch of Prime
Minister Narendra Modi's "Make in India"
campaign as a "historic" day for Indian industry
and said his company will create 1.25 lakh
new jobs over the next 12-15 months as part
of the movement.
http://www.thehindu.com/ October 26, 2014
Havells, Godrej, Micromax and auto-
components maker Bosch are amongst a
handful of companies that have recently moved
back to India some part of their manufacturing
or outsourcing in China owing to currency,
labour and other cost advantages.

17. http://www.moneycontrol.com/on 25 Jan 2015
Make in India campaign' touches right chord at
somewhere in the minds of the global community
and now it is up to us to convert the sentiments into
ground reality by proper follow-up and suitable
actions” – Mr. Shriprakash Shukla, Group Strategy
Chief at M&M at World Economic forum (WEF)
MAKE IN INDIA - What is in news?
http://www.dnaindia.com/ on 13 February
2015
IT hardware industry body MAIT has asked
the government to consider giving duty relief
and export sops to boost the domestic
electronic manufacturing sector.
The industry body its members have already
invested over $2 billion in ICT manufacturing
facilities across India and are looking to
attract more investments.
Urging the Prime Minister to consider the
recommendations, MAIT said it will continue
to actively engage and jointly work with the
government towards making 'Make In India' a
success.
http://timesofindia.indiatimes.com/ on 13 February
2015
A four-day industrial expo, 'NIMA Index-2015',
which will be organised by Nashik Industries &
Manufacturers' Association (NIMA) from April 24,
will focus on new engineering technology for making
Nashik a manufacturing hub in view of the 'Make in
Maharashtra' drive launched by chief minister
Devendra Fadanvis on the lines of 'Make in India'.

18. References
 http://www.makeinindia.com
 http://en.wikipedia.org/wiki/Make_in_India
 http://www.thehindu.com/sunday-anchor/sunday-anchor-make-in-india-vs-
make-in-china/article6533575.ece