“We launched the Make in India campaign to create employment and self-employment opportunities for our youth. We are working aggressively towards making India a global manufacturing hub. We want the share of manufacturing in our GDP to go up to 25% in the near future,” said Narendra Modi at launch of “Make in India Week” on February 13, 2016 in Mumbai.
With an aim to strengthen the Indian economy by introducing more manufacturing units for all industries, “Make in India” was launched on September 25, 2014. The estimated numbers spoke of a 100 million jobs being generated in India, along with the rise of the manufacturing sector to 25 per cent in India’s GDP, by 2020.
Currently, after 4 years of launch of Make in India, there are a few hits, and a few misses too. Not everything looks as promised, but the achievements cannot be completely ignored.
There were 25 key industries that were identified under the scheme. The impact of “Make in India” on Indian economy was estimated based on the outcomes of these sectors.
The initiative opened doors for many new investments. The relaxation of norms for foreign direct investment (FDI) paved way for many companies to set up their manufacturing units in India. The year 2014-15 saw the inflow increase by 20 per cent. A 20 per cent inflow was again recorded in the following year, 2015-16. A major highlight was the $60 billion FDI in the year 2016-17.
Automotive and electronics were amongst the sectors that witnessed increased capital inflow. Looking at the numbers after “Make in India”, the car market is estimated to grow at the rate of more than 6 million vehicles annually by 2020.
However, not all seems to be hip and happening. Last year saw a fall in GDP growth rate from 9.2 per cent in the third quarter of 2016 to 5.7 per cent in the fourth quarter. Unemployment also surged from 3.8 per cent in 2011-12 to 5 per cent in 2015-16.
As promised, the jobs did increases but the numbers were not really satisfying. In a time span of two years, from July 2014 – December 2016, around 6.5 lakh jobs were created in eight sectors, viz, manufacturing, trade, education, health, IT, accommodation and restaurants, construction, and transportation.
Looking at the positives of the impact of “Make in India” on the Indian economy is certainly a choice that we have, but the amplitude of growth does not represent the desired picture. What still remains hazy is the result in the longer term. While, the positives cannot be ignored, it would be interesting to see if the rate of growth picks up in near future.