September2023 :  Kurukshetra Magazine GIST : Micro Notes or Revision Notes : Kurukshetra Magazine Summary


Make in India Initiative


  • September 25, 2014


  • Encourage investment and innovation
  • Build world-class infrastructure
  • Make India a hub for manufacturing, design, and innovation
  • Promote domestic manufacturing (“Vocal for Local”)

Why Make in India?

  • Create jobs and improve skills in 27 sectors
  • Increase manufacturing contribution to GDP
  • Raise tax revenue
  • Reduce regulations and bureaucracy
  • Improve product quality standards
  • Attract foreign direct investment (FDI)
  • Promote growth in services and industry

Pillars of Make in India

  • New Processes: Reforms to attract investment (domestic and foreign)
  • New Infrastructure: Develop industrial corridors, smart cities, world-class infrastructure
  • New Sectors: Focus on 27+ sectors for initial growth
  • New Mindset: Change government interaction with businesses, become a partner in economic development

Key Reforms

  • Since 2014, the government has:
    • Simplified the tax system
    • Attracted FDI
    • Increased economic efficiency and competitiveness
    • Introduced Production Linked Incentive (PLI) schemes for 14 manufacturing sectors

Attracting FDI

  • Goods and Services Tax (GST)
  • Reduced corporate tax
  • Improved Ease of Doing Business (EoDB) ranking
  • FDI policy reforms
  • Reduced compliance burden
  • Public procurement favoring domestic manufacturing
  • Phased manufacturing programs

Advantages of Make in India

  • Overall socioeconomic growth, especially in manufacturing and job creation
  • Increased purchasing power and consumer base
  • Reduced brain drain with focus on education and training
  • Improved balance of payments and foreign exchange reserves
  • Increased flow of FDI, technical expertise, and creative skills
  • Higher credit ratings and attracting more investment


  • Land acquisition process
  • Labor development ecosystem
  • Tax rationalization and technology access
  • Networking capacity building institutions
  • Review of procedures and regulations
  • World-class research and development infrastructure

Fostering Balanced Regional Development

  • One-District One-Product (ODOP) initiative:
    • Promotes local products from each district
    • Provides a platform for farmers, artisans, and manufacturers
  • Success depends on:
    • Capacity building initiatives
    • E-commerce platforms (including GeM)
    • Buyer-seller meets
    • Brand image and international marketing
    • District Export Hubs (DEHs)

Impact of Make in India

  • Improved EoDB ranking (142 in 2014 to 63 in 2022)
  • Increased gross FDI (average 2.2% to 2.6% of GDP)
  • Highest ever annual FDI inflow (US $84.84 billion in 2022)
  • Growth in agriculture sector (average 4.6% annually)
  • Increased agricultural exports (US $50.2 billion in 2021-22)
  • Increased employment in manufacturing sector (57 million in 2017-18 to 62.4 million in 2019-20)
  • Growth in services exports (US $254.5 billion in 2021-22)


  • Make in India has the potential to make India a global manufacturing hub.
  • Continued efforts are needed for balanced regional growth, poverty reduction, and job creation.


India – Hub for Electronics Manufacturing

Government Initiatives

  • Aims to boost manufacturing for domestic and international markets
  • Subsidies to manufacturers to:
    • Increase exports
    • Reduce cheap imports
    • Create jobs
  • Target: Increase electronics manufacturing capacity to Rs. 24 lakh crore by 2025-26 (create over 10 lakh jobs)

Early Signs of Success

  • Mobile phone exports crossed $11 billion in 2022-23
  • Increased value addition in electronics and smartphone manufacturing (PLI Scheme and PMP)
  • Import substitution in telecom sector
  • 7-fold jump in drone sector turnover due to PLI Scheme
  • Electronics good exports increased from Rs. 39,978 crore in 2016-17 to Rs. 1,09,797 crore in 2021-22 (CAGR 22.39%)
  • India’s share in global electronics manufacturing grew from 1.3% in 2012 to 3.75% in FY 21-22

Make in India Initiative

  • PLI Scheme for LSEM: 4-6% incentive on incremental sales for mobile phone and electronic component manufacturing
  • PLI for IT Hardware: 4-2%/1% incentive on net incremental sales of goods manufactured in India
  • SPECS: 25% financial incentive on capital expenditure for electronic goods
  • Modified EMC 2.0 Scheme: Support for world-class infrastructure to attract major manufacturers
  • Programme for Development of Semiconductors and Display Manufacturing Ecosystem: Rs. 76,000 crore outlay

Fiscal Incentives

  • Semiconductor Fabs: 50% fiscal support for setting up silicon-based fabs
  • Display Fabs: 50% fiscal support for setting up TFT LCD/AMOLED fabs
  • Compound Semiconductors/SiPh/Sensors Fabs: 50% fiscal support
  • Design Linked Incentive Scheme: Financial incentives for semiconductor design

PLI Scheme 2.0 for IT Hardware

  • Budgetary outlay of Rs. 17,000 crore to enhance manufacturing and exports
  • 3 categories: global companies, hybrid companies, domestic companies
  • Expected to:
    • Broaden manufacturing ecosystem
    • Localize components and sub-assemblies
    • Increase production (Rs. 3.35 lakh crore)
    • Attract investment (Rs. 2,430 crore)
    • Create jobs (75,000)


  • Infrastructure: Insufficient and poor-quality roads and ports
  • Bureaucracy and complex taxation system
  • Scarcity of skilled labor

Way Forward

  • Increase manufacturing sector contribution to GDP (16% to 25% by 2025)
  • Leverage domestic demand, government initiatives, and demographic edge



Cultural Heritage Tradition to Innovation

India’s Cultural Heritage

  • Diverse tapestry shaped by thousands of years of history
  • Soft power tool attracting tourists, scholars, and enthusiasts
  • Yoga, music, dance, and traditional medicines garner international acclaim

Make in India and Cultural Heritage

  • Opportunity to combine tradition and innovation
  • Empowering and uplifting traditional artisans and craftsmen
  • Initiatives:
    • Training in modern techniques, design, marketing, and e-commerce
    • Financial support through schemes like PMEGP
    • Trade fairs and online platforms like e-Haats
    • 150 rural handicrafts clusters for training and resources

Revitalising Traditional Art Forms

  • Cultural renaissance for India’s art, crafts, and traditions
  • Blending modern tools with traditional craftsmanship
  • Examples:
    • National Handloom Day celebration
    • SF value chain promotion (Farm-to-Fiber, Fiber-to-Fabric, Fabric-to-Fashion, Fashion-to-Foreign)
    • Resurgence of pottery with innovative glazes and shapes

Leveraging Technology

  • Digital replicas, high-resolution images, 3D scanning and printing for preservation
  • Virtual museums and online exhibitions
  • E-commerce platforms for direct consumer connection and fair prices

Cultural Tourism and Experiential Learning

  • Make in India promoting cultural tourism:
    • Swadesh Darshan scheme for theme-based tourism circuits
    • Incredible India! campaign to highlight cultural heritage
    • Indian Council for Cultural Relations (ICCR)

Economic Impact

  • Tourism promoting Indian art and culture globally
  • Cultural diplomacy strengthened through cultural exchanges
  • Showcasing artistic heritage to global audiences


  • Make in India has potential to preserve and promote cultural identity
  • Initiatives:
    • Integrating cultural elements into tourism
  • Fostering artisanal growth through e-commerce
  • Promoting cultural diplomacy
  • Elevates global visibility of India’s rich heritage



Make in India’s Super Star Sectors and Water Management


  • Make in India initiative launched in September 2014
  • Aims to promote India as a global manufacturing destination
  • Relies on effective water use

Super Star Sectors

  • Six sectors identified to boost Make in India:
    • Automotive
    • Electronics System Design and Manufacturing
    • Renewable Energy
    • Roads and Highways
    • Pharmaceuticals
    • Food Processing

Water Usage by Sector

  • Automotive:
    • Uses 39,000 gallons of water per car
    • Requires sustainable water management practices
  • Electronics:
    • Needs ultra-pure water in production
    • Uses 2,200 gallons of water per integrated circuit
    • Industry can innovate for water conservation
  • Renewable Energy:
    • 1-5 million gallons of water used to clean a 100 MW solar plant
    • Green hydrogen production requires clean water
  • Roads and Highways:
    • Network needs careful planning to consider water conservation
  • Pharmaceuticals:
    • Requires high-quality pure water throughout manufacturing
    • 80% of top global pharmaceutical companies focus on water sustainability
  • Food Processing:
    • Uses significant water in processing
    • UNFAO reports 70% of agricultural water goes to food production

Government Initiatives

  • Simplified regulations for businesses
  • Need for cautious approach on water and environment norms
  • Circular use: encourages water reuse and recycling
  • Water-neutral approach: optimizes processes to reduce water use


  • Innovation and manufacturing should not lead to resource overuse
  • Water conservation is crucial for Make in India’s success


  FDI: Changing Paradigm

FDI Explained

  • Investment by foreign companies/individuals in a host country
  • Boosts growth through resources, technology, jobs
  • Promotes economic growth through:
    • Foreign market access
    • Capital, forex, technology

Impact on Manufacturing

  • Brings new capital and technology
  • Increases productivity and efficiency
  • Creates jobs through new/expanded factories

Types of FDI

  • Horizontal FDI:
    • Company expands to produce same goods in host country
    • Profitable due to lower costs (labor)
  • Vertical FDI:
    • Acquires raw materials or distribution outlets
    • Makes production more cost-efficient

FDI in India

  • Entry routes:
    • Automatic route: minimal approval needed
    • Government route: approval required for sensitive sectors
    • Mergers and Acquisitions: quick market entry
  • Top investors (2022-23):
    • Mauritius (26%)
    • Singapore (23%)
    • USA (9%)
    • Netherlands (7%)
    • Japan (6%)
  • Total FDI equity inflow (2022-23): $70.97 billion

Changes in FDI Policy

  • Implemented to:
    • Promote investment
    • Ease business operations
    • Enhance economic growth
  • Examples:
    • Single-Brand Retail Trading: 100% FDI allowed
    • Construction Sector: broader definition
    • Digital Media: 26% FDI for news/current affairs content
    • Civil Aviation: 100% FDI in airlines
    • Defence Sector: 74% FDI limit
    • Insurance Sector: 74% FDI limit

Make in India and FDI

  • Objectives of Make in India:
    • Attract FDI for manufacturing base
    • Promote domestic industries and self-reliance
    • Increase employment
    • Foster innovation and technology
    • Enhance export competitiveness
  • Impact of FDI on Manufacturing:
    • Manufacturing contributes 17.3% to GDP
    • Annual FDI inflows increasing
    • Manufacturing output rising (2019-2021)
    • Automobile industry:
      • Growth (2017-18 to 2018-19): 25.54%
      • FDI inflow (2021): $60 billion
      • Contributes 7% of GDP, employs 19 million
    • Textile sector:
      • FDI inflow (2017-2022): $1.52 billion
      • Contributes 4% of GDP, 14% of export earnings


  • FDI plays a key role in emerging economies
  • Bridges gap between capital and technology needs
  • Drives economic growth


Food Processing: Advancing Make in India

Food Waste in India

  • FAO estimates 40% of food production is wasted annually
  • Causes: inefficient supply chain and fragmented food system
  • Solution: strengthen food processing industry

Types of Food Processing

  • Primary: basic cleaning, grading, packaging (fruits/vegetables)
  • Secondary: alteration of product (milling paddy to rice)
  • Tertiary: high value-added ready-to-eat food (bakery items)

Government Initiatives

  • Pradhan Mantri Kisan Sampada Yojana (PMKSY)
    • Aims to develop modern food processing infrastructure
    • Creates infrastructure for efficient supply chain management
    • Approved projects:
      • 41 Mega Food Parks
      • 376 Cold Chain projects
      • 79 Agro-Processing Clusters
      • 489 proposals under CEFPPC
      • 183 Food Testing Labs
    • Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME)
      • Launched in June 2020
      • Aims to improve and formalize microenterprises in the unorganized food processing sector
      • Implemented in 35 states/UTs
      • Provides financial assistance for working capital and equipment
    • Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
      • Aims to boost domestic manufacturing and exports
      • Supports food manufacturers with incentives for expansion and branding
      • Targets emergence of strong Indian brands

Industry Growth

  • Indian Food Processing market growing at 15.2% CAGR
  • Estimated to reach $535 billion by 2025
  • Food processing industry links farmers to domestic and international consumers

Key Statistics

  • Retail segment contributes 70% of sales in India’s food and grocery market (world’s 6th largest)
  • Indian gourmet food market valued at $1.3 billion (growing at 20% CAGR)
  • India ranks:
    • 1st in global dairy production
    • 2nd in vegetable production
    • 2nd in cereal, fruit, and nut production
  • Exports:
    • Processed food growing faster than unprocessed food
    • 46th in dairy exports
    • 15th in vegetable exports
    • 5th in cereal exports
    • 25th in fruit and nut exports

Government Support

  • Food Processing designated as a Special Focus Sector in National Manufacturing Policy
  • Mission Organic Value Chain Development in the North East Region (MOVCDNER) launched
    • Provides subsidies to farmers for organic inputs
  • Goal to quadruple marine product exports to Rs. 1 lakh crore in 5 years
  • Plans to build 10,000 new Farmer Producer Organizations (FPOs) to accelerate farm-gate processing


  • Food processing industry is crucial for Make in India’s success
  • Government initiatives aim to address food waste, improve infrastructure, and promote exports


Renewable Energy: Making India Self-Sufficient

India’s Energy Landscape

  • Fastest-growing economy globally (5th largest)
  • Reliant on fossil fuels (imports 80% of crude oil)
  • 4th largest CO2 emitter
  • Ambitious goals:
    • Cut carbon emissions by 1 billion ton by 2030
    • Achieve net-zero emissions by 2070

Renewable Energy Advantages

  • Sustainable: clean, green, environmentally friendly
  • Job creation: opportunities in new technologies
  • Market assurance: reliable source of energy
  • Power security: 24/7 power supply and sustainable transport

Government Initiatives

  • Renewable energy targets:
    • 4th globally in installed capacity (including hydro)
    • 500 GW of non-fossil fuel energy by 2030 (COP26 pledge)
  • Wind energy program: target of 60 GW by 2022
  • FDI in renewables: $251 million in FY23 Q3 (top investors: Singapore, Mauritius, Netherlands, Japan)
  • Reduced costs:
    • Solar power: 84% cheaper since 2010 (often cheaper than coal)
    • Wind power: 49% cheaper in the past decade
  • Solar technology leadership:
    • World’s largest floating solar plant (Kerala)
    • World’s largest solar park (Pavagada Solar Park, Karnataka)
  • Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM):
    • Launched in 2019 to provide solar energy benefits to farmers (30,800 MW target by 2023)

Other Key Steps

  • 100% FDI allowed for renewable energy projects
  • Waiver of interstate transmission charges for solar and wind power (until June 2025)
  • Ultra Mega Renewable Energy Parks for streamlined project development
  • Green Energy Corridor project: building new transmission lines for renewables
  • Standard Bidding Guidelines for solar and wind power procurement
  • Must-run status for solar and wind power
  • Bio-CNG vehicles with 20% petrol blending
  • Hydrogen fuel cell vehicles: future focus area
  • Grid integration: key challenge (managing variable renewable energy sources)

Current Status and Challenges

  • Installed renewable energy capacity: 174 GW (2023) – 37% of total energy supply
  • Challenges:
    • Integrating renewables with the grid
    • Ensuring 24/7 power supply with storage solutions
    • Optimizing energy consumption in agriculture sector

The Road Ahead

  • Renewable energy shift needs to become a mass movement
  • Achieve energy security for sustained development
  • Promote electric vehicles and hydrogen fuel cell vehicles
  • Rectify agricultural subsidies for efficient energy consumption


Make in India and Youth


  • Share of manufacturing in GDP: 16%
  • Rote learning in education system
  • Lack of advanced technology, practical training in institutes
  • Low investment in research and development
  • Poor infrastructure, especially in rural areas
  • Complexities in securing intellectual property rights
  • Pressure for conventional careers
  • Gender disparity

Government Initiatives

  • NEP 2020: Aims to identify unique skills, promote creativity and critical thinking
  • Atal Tinkering Labs (ATL): Established in 10,000 schools to foster curiosity and innovation in STEM fields
  • New incubators for startups
  • Mentor India initiative: Provides support from professionals
  • Start-up India: Launched to create a startup-friendly ecosystem (increased startups from 452 in 2016 to 84,012 in 2022)
  • State-level programs: Additional funding, incubators, skill development based on local needs


  • Make in India aims to create jobs and increase manufacturing.
  • Collaboration among stakeholders (government, industries, education) is crucial.
  • Continued efforts are needed to make India a self-sufficient nation.


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