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The Indian government has implemented various policies to boost the manufacturing sector and attract investments. These include the implementation of Goods and Services Tax, corporate tax reduction, ease of doing business improvements, FDI policy reforms, compliance burden reduction, promotion of domestic manufacturing through procurement orders, and the introduction of the Phased Manufacturing Programme (PMP).

The Indian Government has implemented various schemes and policies to revive the economy and seize growth opportunities amidst the COVID-19 disruption. These include the Atmanirbhar packages, the Production Linked Incentive (PLI) Scheme, the National Infrastructure Pipeline (NIP), National Monetization Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), and the National Single Window System (NSWS). The establishment of Project Development Cells (PDCs) in relevant ministries and departments has been undertaken to expedite investments.

The Indian government has allocated INR 1.97 lakh crore (over US$ 26 billion) to the Production Linked Incentive (PLI) schemes for 14 key manufacturing sectors in the Union Budget 2021-22. These schemes aim to enhance manufacturing capabilities, create jobs, develop skills, stimulate economic growth, and boost exports in the coming years.

The manufacturing sector has shown growth in Gross Value Addition (GVA) and employment rate despite COVID-19, as per the Economic Survey 2021-22. Employment in the sector increased from 57 million in 2017-18 to 62.4 million in 2019-20.

Details of some of the major initiatives /schemes are as follows:

Make in India initiative:

The ‘Make in India’ campaign was introduced on 25th September 2014 by Prime Minister Narendra Modi. Which promoted investment, encourage innovation, establish superior infrastructure, and position India as a manufacturing, design, and innovation hub. This initiative was distinct and aimed to endorse India’s manufacturing sector on a global level. It had a single goal: to support local industries. The ‘Make in India’ program is implemented nationwide, without limitations to any specific state, district, city, or region. Instead, it is being implemented nationwide.

In addition to the aforementioned efforts, the government has introduced several schemes as part of the ‘Make in India’ initiative.

Notably, the Production Linked Incentive (PLI) scheme has been implemented. The aim is to incentivize manufacturers and promote domestic production. This initiative contributes to enhancing self-reliance in the country. This scheme encompasses multiple sectors, including electronics, mobile phones, pharmaceuticals, textiles, food processing, and automobiles, among others.

Another scheme launched under the ‘Make in India’ initiative is the Skill India program. The program aims to train and upskill the workforce. Its objective is to bridge the gap between the demand and supply of skilled labor. This program provides training in various sectors, including manufacturing, IT, healthcare, retail, and tourism, among others.

Furthermore, the ‘Make in India’ initiative has attracted significant foreign investment in the country. This has resulted in an increase in the employment rate. It has also fostered overall growth in the manufacturing sector. Additionally, this scheme has garnered recognition and support from numerous international organizations, governments, and business communities worldwide.

A numerical Projection

The initiative aims to encourage both multinational and domestic companies to manufacture their products in India and increase the share of manufacturing in GDP to 25% by 2025. To achieve this, the initiative is built upon four pillars, namely new processes, new infrastructure, new sectors, and a new mindset. Notably, the initiative has already achieved significant milestones and is currently focusing on 27 sectors under Make in India 2.0. The Department for Promotion of Industry and Internal Trade is coordinating action plans for manufacturing sectors, while the Department of Commerce is overseeing service sectors. As a result of this initiative, it is anticipated that there will be an increase in the demand and consumption of machinery and equipment by the local manufacturing industry.

The objective of the ‘Make in India’ initiative is to:

1. Boost domestic manufacturing and promote exports.
2. Create job opportunities for the growing workforce.
3. Attract foreign investment and promote economic growth.
4. Reduce India’s dependence on imports and make the country self-reliant in key sectors.
5. Encourage entrepreneurship, innovation, and upskilling of the workforce.

The benefit of Make in India scheme: 

The Make in India initiative has positively impacted the Indian economy, environment, and society by bringing countless business opportunities to India, creating a more attractive business climate for domestic and international companies, and building human capital in the country. By attracting investments from around the world and generating employment opportunities for the youth, the initiative has made a significant impact. With a key focus on skill development, manufacturing infrastructure, and positioning India as a global manufacturing hub, the initiative is driving entrepreneurship across various sectors. Built upon four pillars, the initiative aims to unleash the entrepreneurial potential of India, not limited to manufacturing alone.

The four pillars are new processes, new infrastructure, new sectors, and a new mindset. The initiative has resulted in a comprehensive and unprecedented overhaul of outdated processes and policies and represents a complete change of the government’s mindset – a shift from issuing authority to business and not regulator. The initiative has helped India jump to 63rd place out of 190 countries in the world Banks’ 2019 Ease of Doing Business Index from 130th in 2016.

Industrial Corridor Development Programme:

An ambitious infrastructure project called the National Industrial Corridor Development Programme (NICDP) was started by the Indian government with the goal of creating industrial hubs in India that can compete with the greatest manufacturing and investment locations in the world. By promoting the creation of industrial corridors, the programme seeks to increase and improve the competitiveness of Indian industry. The programme aims to accelerate inclusive economic transformation and is in line with the country partnership plan for India, 2018–2022.By extending the industrial influence regions to include smaller towns and cities throughout the states of India, the industrial corridor development programme seeks to promote equal growth between two well-established economic hubs.

As part of the NICDP, the government has approved the development of 32 projects throughout 11 industrial corridors across the nation, to be completed in four phases and at varied stages of conceptualization, development, and execution. The NICDP is anticipated to foster economic growth and job opportunities that will contribute to overall socio-economic development.

Under the ICDP, the government has identified five industrial corridors to be developed across the country. These are:

1. Delhi-Mumbai Industrial Corridor (DMIC)
2. Chennai-Bengaluru Industrial Corridor (CBIC)
3. Bengaluru-Mumbai Economic Corridor (BMEC)
4. Amritsar-Kolkata Industrial Corridor (AKIC)
5. East Coast Economic Corridor (ECEC)

The DMIC, the most modern of these corridors, connects Mumbai, India’s financial centre, with Delhi, the country’s capital, through six states and one union territory. The corridor, which has a total length of 1,483 kilometres, runs through some of the most heavily industrialised parts of the nation. The ICDP aspires to equip industries along these corridors with top-notch infrastructure, such as power, water supply, road, rail, and air connectivity. In order to oversee the construction of each of these corridors, the government has also established special purpose companies (SPVs) and inked memorandums of understanding with other nations.

Objectives of Industrial Corridor Development Programme:

The Industrial Corridor Development Programme (ICDP) aims to promote sustainable industrialization and urbanization, creating high-quality industrial centers and job opportunities. By expanding industrial influence regions to include smaller towns and cities, the program aims to ensure balanced growth between established economic hubs. It is expected to become the primary driver of manufacturing and national industries in India. The ICDP aligns with India’s country partnership strategy for 2018-2022, accelerating inclusive economic transformation and fostering economic growth, employment, and socio-economic development. As part of the National Industrial Corridor Programme (NICP), the government has approved the creation of 11 industrial corridors with 32 projects planned in four phases. These projects are at various stages of conceptualization, development, and implementation.

Benefits of Industrial Corridor Development Programme:

The Industrial Corridor Development Project (ICDP) promotes sustainable urbanization and industrialization, creating employment opportunities and driving economic growth. Aligned with India’s country partnership plan for 2018-2022, the ICDP aims to accelerate inclusive economic change. It will serve as a focal point for manufacturing and national industries, filling talent gaps, improving transportation networks, and enhancing institutions. The ICDP will strengthen domestic and international supply chains, attract domestic and foreign investors, and generate job opportunities. Overall, it will contribute to socio-economic development.

Ease of Doing Business:

India’s Ease of Doing Business (EODB) plan simplifies the business environment by reducing regulations and compliance requirements throughout a company’s life cycle. The government has implemented measures to improve the business climate, including reducing bureaucratic hurdles and decriminalizing certain restrictions. As a result of the EODB program, India’s ranking in the World Bank’s report has improved, particularly in indicators such as starting a business, obtaining building permits, and accessing energy. Additionally, the EODB plan has attracted increased foreign direct investment (FDI) inflows into the country.

Some notable Benefits Of EODB scheme:

1. Improved Business Environment: EODB improves India’s business climate, attracting more foreign investment.
2. Increased Employment Opportunities: EODB promotes SMEs and start-ups, boosting employment prospects and reducing unemployment.
3. Boosted GDP Growth: EODB drives corporate expansion and investment, leading to higher GDP growth and improved living standards.
4. Encouraged Innovation: EODB initiatives support start-ups, fostering innovation and entrepreneurship in India.
5. Simplified Taxation System: EODB simplifies tax laws, making compliance easier and reducing tax evasion and corruption.

 National Single Window System:

The National Single Window System (NSWS) is a digital portal announced by the Indian government on September 22, 2021. The main aim of the National Single Window System (NSWS) is to combine the state- and central-level clearance processes. Additionally, it serves as a convenient “one-stop-shop” for investors, entrepreneurs, and enterprises in India. Through the NSWS, investors can conveniently apply for various approvals and licenses required to start a business in the nation. 26 Central Departments and 16 State Governments have submitted applications for various clearances on the digital platform. The NSWS is a digital platform that helps businesses find and apply for approvals in accordance with their operational needs.

The KYA module provides instructions for 32 Central Departments and 32 States. The NSWS aims to streamline business processes and reduce the time and cost involved in obtaining permits and approvals. This initiative aims to simplify the establishment and operation of companies in India. By enhancing India’s business friendliness, the NSWS is expected to attract more foreign investors and facilitate entrepreneurship in the country. A significant milestone in this regard, the NSWS plays a pivotal role in making India an attractive destination for business ventures.

Objectives of National Single Window System (NSWS):

The NSWS in India is a digital platform that simplifies the process of acquiring licenses and permissions for businesses. It provides instructions for 32 Central Departments and 32 States, allowing users to identify, apply for, and track approvals online. By eliminating the need for multiple applications and physical visits to government offices, the NSWS streamlines business registration. It aims to make India more business-friendly and attractive to investors, serving as a one-stop portal for approvals and licenses. The NSWS promotes entrepreneurship and foreign investment in India.

Benefits of  National Single Window System (NSWS):

Here are some of the benefits of the NSW System:

1. Streamlined Paperwork: The NSW System eliminates the need for firms to submit multiple copies of trade-related papers to different governmental bodies. Instead, businesses can digitally submit all necessary documents, saving time and effort.
2. Quicker Processing: With the electronic processing of trade-related documents through the NSW System, the manual processing time is reduced. This enables faster clearance of goods at ports of entry and expedites trade processes.
3. Cost Reduction: The NSW System eliminates the need for physical copies of trade-related papers, resulting in lower printing, storage, and transit expenses. Businesses can save money and operate more efficiently.
4. Transparency Boost: The NSW System provides a consolidated platform for information exchange between businesses and government organizations, enhancing transparency. This reduces the risk of fraud and corruption.
5. Enhanced Compliance: By offering businesses a centralized platform for filing and processing trade-related documents, the NSW System promotes compliance with trade regulations. This minimizes the chances of non-compliance and associated consequences.

PM Gati Shakti National Master Plan (NMP):

PM Gati Shakti is a national master plan for multi-modal connectivity in India. It aims to reduce logistics costs by coordinating infrastructure projects. The plan has six pillars, including comprehensiveness, which unifies Ministries and Departmental projects under a centralised site. The initiative involves collaboration from 16 government ministries, including Roadways and Railways, through the Gati Shakti digital platform. The goal is to increase manufacturing’s contribution to GDP to 25% within a decade and generate 100 million jobs. The plan includes creating National Investment and Manufacturing Zones (NIMZs), 11 Industrial Corridors, and 32 Projects across the nation. It focuses on improving connectivity between different transportation modes, reducing costs, increasing efficiency, and supporting economic growth. The plan also aims to connect remote areas to the transportation network, promote sustainable transport, and create job opportunities in infrastructure, manufacturing, and logistics sectors.

Objectives of PM Gati Shakti National Master Plan (NMP):

The objectives of PM Gati Shakti National Master Plan (NMP) are as follows:

1. Seamless Connectivity: Create a well-integrated transportation network that connects roads, trains, canals, and airways to minimize logistical costs and improve efficiency.
2. Infrastructure Development: Build new projects and upgrade existing infrastructure to enhance the overall capacity and effectiveness of the transportation system.
3. Last-Mile Connection: Improve connectivity to remote areas by establishing effective last-mile connections to the main transportation network.
4. Affordable Transportation: Provide cost-effective transportation services to support the growth of various industries, including industry, agriculture, and services.
5. Sustainable Transport: Promote the adoption of sustainable and environmentally friendly modes of transportation to reduce the carbon footprint of the transportation sector.
6. Economic Growth and Job Creation: Develop infrastructure to stimulate economic growth and generate employment opportunities.
7. Facilitate International Trade: Support the logistics industry and streamline international trade and commerce.
8. Technology and Innovation: Utilize technology and innovation to enhance infrastructure and transportation efficiency.
9. Industrial Clusters and Smart Cities: Encourage the development of industrial clusters and smart cities along transportation routes.
10. Investor-Friendly Environment: Improve the regulatory framework and create an ecosystem conducive to private investment in infrastructure development.

Benefits of PM Gati Shakti National Master Plan (NMP):

The PM Gati Shakti National Master Plan (NMP) is expected to provide several benefits to India, including:

1. Reduced logistics costs: Increase transportation efficiency to lower logistics costs, promoting competition and reducing consumer prices.
2. Improved connectivity: Enhance connectivity among transportation modes for shorter travel distances, improved safety, and overall effectiveness.
3. Economic growth: Provide effective and affordable transportation services to stimulate economic growth.
4. Job creation: Generate millions of jobs in infrastructure, manufacturing, and logistics sectors.
5. Environmental benefits: Promote environmentally friendly transportation options to reduce carbon emissions and enhance the environment.
6. Boost to logistics sector: Facilitate trade and commerce by offering seamless connectivity, fostering the growth of the logistics sector.
7. Improved quality of life: Enhance infrastructure and connectivity in remote areas, improving residents’ quality of life.
8. Better regulation: Enhance regulations and create an ecosystem favorable for private investment in infrastructure development.
9. Increased competitiveness: Improve overall effectiveness of the transportation system, enhancing the competitiveness of Indian companies globally.

FAQ’s

Q: What is the ‘Make in India’ initiative?

A: The Indian government launched the ‘Make in India’ initiative in 2014 with the goal of promoting investment, innovation, and infrastructure development. This campaign aims to position India as a global manufacturing and design hub while boosting domestic manufacturing, creating job opportunities, attracting foreign investment, reducing import dependence, and encouraging entrepreneurship and upskilling of the workforce.

Q: What are some major schemes under the ‘Make in India’ initiative?

A: Some major schemes under the ‘Make in India’ initiative include the Production Linked Incentive (PLI) scheme, which provides incentives to manufacturers and promotes domestic production, and the Skill India program, which focuses on training and upskilling the workforce in various sectors.

Q: What is the National Industrial Corridor Development Programme (NICDP)?

A: The National Industrial Corridor Development Programme (NICDP) is an infrastructure project initiated by the Indian government to create industrial hubs and promote competitiveness in Indian industry. It involves the development of industrial corridors across the country, such as the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), and others, with the aim of fostering economic growth, job opportunities, and balanced development between economic hubs.

Q: What is the objective of the Ease of Doing Business (EODB) plan in India?

A: The objective of the Ease of Doing Business (EODB) plan is to simplify the business environment, reduce regulations and compliance requirements, and improve the ease of starting and operating businesses in India. It aims to attract more foreign investment, boost employment opportunities, promote GDP growth, encourage innovation, and simplify the taxation system.

Q: What is the National Single Window System (NSWS) in India?

A: The National Single Window System (NSWS) is a digital portal introduced by the Indian government to streamline the process of obtaining approvals and licenses for businesses. It serves as a one-stop-shop for investors, entrepreneurs, and enterprises, allowing them to apply for various clearances online. The NSWS aims to simplify business registration, enhance India’s business friendliness, attract foreign investors, and facilitate entrepreneurship.

Q: What is the PM Gati Shakti National Master Plan (NMP)?

A: The PM Gati Shakti National Master Plan (NMP) is a national master plan for multi-modal connectivity in India. It aims to reduce logistics costs by coordinating infrastructure projects and improving connectivity between different transportation modes. The plan focuses on creating National Investment and Manufacturing Zones (NIMZs), developing industrial corridors, and connecting remote areas to the transportation network. The objective is to stimulate economic growth, generate jobs, promote sustainable transport, and facilitate international trade.

Please note that the above information is based on the provided article and may not cover all the details of each initiative or scheme.

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