Government Initiatives: Make in India

Introduction

Make in India is a Government of India initiative to attract, encourage and invite foreign companies to manufacture their products in factories and plants located in India. It was launched on 25 September 2014 by Prime Minister of India Narendra Modi. This initiative of PM Modi is aimed at creating employment opportunities for the youth of India.
India is one of the fastest growing economies in the world today and promises to become one of top three economies of the world by 2020. Large-scale manufacturing and production help generate employment and propel a country's economic upsurge; the same is the target set by PM Modi for India. Prime Minister Narendra Modi, before the 2014 General Elections, had promised the people that if he got elected to power, his government would leave no stone upturned for creating enough job opportunities for the Indian youth. The result of the NDA government's innovative policies was the inception of the 'Make in India' programme.
Modi announced an innovative programme called 'Make in India' in his first Independence Day speech as the Indian Prime Minister on 15 August 2014 at the Red Fort.

Key Policies of the Make in India

The four key policies adopted by the Government of India for the 'Make in India' programme are as follows:
New Initiatives- To facilitate investment, foster innovation, protect intellectual property and build best-in-class manufacturing infrastructure.
Foreign Direct Investment- To create an investor-friendly atmosphere and relax the regulatory environment to encourage FDI into India.
Intellectual Property Facts- To create a conducive environment for the protection of intellectual property rights of innovators and creators by bringing about changes at legislative and policy level and lay specific focus on improving service delivery by upgrading infrastructure, building capacity and using state-of-the-art technology in the functioning of intellectual property offices in the country.
National Manufacturing- Adopted the 'National Manufacturing' policy to address the realms of infrastructure, regulation, technology, skill development, financial feasibility, exit mechanism and various other factors pertaining to the manufacturing sector.

Government Incentives for Make in India Campaign

Allowed 100 percent FDI in medical devices.
Increased FDI cap in insurance and sub-activities from 26 percent to 49 percent.
Allowed 100 percent FDI in the telecom sector.
Allowed 100 percent FDI in single-brand retail.
FDI in commodity exchanges, stock exchanges and depositories, power exchanges, petroleum refining by PSUs and courier services under the government route has now been brought under the automatic route.
Removed restriction in the tea plantation sector.
Raised FDI limit to 74 percent in credit information and to 100 percent in asset reconstruction companies.
Raised FDI limit of 26 percent in the defense sector to 49 percent under the government approval route. Foreign Portfolio Investment up to 24 percent permitted under automatic route. FDI beyond 49 percent is also allowed on a case-by-case basis with the approval of Cabinet Committee on Security.
Construction, operation and maintenance of specified activities of the Railway sector opened to 100 percent foreign direct investment under automatic route.