For years, stakeholders have been discussing how to give momentum to manufacturing in India and make India a Global Manufacturing Hub. Make in India is an endeavor by the Government of India to encourage companies to manufacture in India and incentive reliable investments into manufacturing. Make in India was initiated by the Government of India on 25th September 2014 to encourage companies to manufacture in India. Make in India is formulated to promote investment, foster innovation, protect diligent property, and build best-in-class manufacturing infrastructure for aspiring entrepreneurs. The campaign encompasses various policies that can help flourishing entrepreneurs. And in this startup eternity, entrepreneurs are contributing maximum to drive the Make in India initiative to the next level.
‘Make in India’ recognizes ‘ease of doing business’ as the most critical factor to nurture entrepreneurship. Several initiatives have already been undertaken to ease the business environment. Make In India’s success relies a lot on the fate of the newer companies and startups.
“I want to tell the people of the whole world: Come, make in India. Come and manufacture in India. Go and sell in any country of the world, but manufacture here. We have the skill, talent, discipline, and the desire to do something. We want to give the world an opportunity that will come and make in India,” Prime Minister of India, Mr. Narendra Modi said while introducing the program in his maiden Independence Day speech from the ramparts of the Red Fort on August 15, 2014.”
Objectives of Make in India
The campaign aims to fulfill the below-mentioned objectives
- Promote investment
- Procure an impetus for innovation
- Enhance the development of skills
- Protect the intellectual property
- Provide employment opportunities
- Build the best in class manufacturing infrastructure
- Make India digital
- Create healthy relationships with various countries
Pillars of Make in India
The “Make in India” initiative is founded on four pillars, which have been observed to give a boost to entrepreneurship in India, not only in manufacturing but also in other sectors.
1. New Processes
‘Make in India’ recognises ‘ease of doing business as the most significant factor to promote entrepreneurship. Several initiatives have already been begun to ease the business environment. The aim is to de-license and de-regulate the industry during the entire life cycle of a business.
2. New Infrastructure
Availability of contemporary and facilitating infrastructure is an essential provision for the growth of the industry. The government intends to develop industrial corridors and smart cities to provide infrastructure based on state-of-the-art technology with modern high-speed communication and integrated logistic arrangements—existing infrastructure to be bolstered through up-gradation of infrastructure in industrial clusters. Innovation and research activities are benefited through a fast-paced registration system, and accordingly, the infrastructure of the Intellectual Property Rights registration set-up has been upgraded.
3. New Sectors
The government of India has observed 25 priority sectors that shall be emphasized adequately. These are the sectors where the possibility of FDI (foreign direct investment) is the highest, and the government of India shall announce the acquisition.
- IT & BPM
- Defense manufacturing
- Electrical machinery
- Food processing
- Textiles and Garments
- Media and Entertainment
- Tourism and Hospitality
- Automobile components
- Renewable energy
- Thermal power
- Roads and Highways
- Electronics systems.
4. New Mindset
The industry is accustomed to seeing the Government as a regulator. ‘Make in India’ intends to change this by bringing a paradigm shift in how Government interacts with industry. The Government will partner sectors in the economic development of the country. The approach will be that of a facilitator and not a regulator.
Services of Make in India policy for Startups
- Make in India concentrates on sectors like IT, pharmaceutical, electronics, textiles which are globally competitive sectors. These are the sectors that drive huge interest from entrepreneurs and are also attractive from an FDI viewpoint.
- It also drives emphasis on protecting intellectual property rights. This bears a direct correlation with protecting the bright creations of young intellects.
- Fostering innovation is the primary objective of the initiative. It aims to support new ideas which will also bring forth the young talent in India.
- The policy will also furnish the best infrastructure to support its “owned” creation. This will include smart edifice cities and toughening the modern infrastructure.
- Building additional capacity for innovation which includes new youth-focused programs and institutions dedicated to developing specialized skills.
- Ease of application processes such as integrating services of Central government departments and ministries with the eBiz, a single-window IT platform for clearance of services.
- Filing of e-returns through a unanimous form, making use of digitization to make things hassle-free.
- Relaxation on FDI caps will entrust the entrepreneurs to deliver changes, and make an attitudinal shift towards entrepreneurship.
- The government has also considered particular policies for specific industries. As a result, area-based incentives (SEZs), state-based incentives, and export incentives (under foreign trade policy) are a part of the system.
The Target of Make in India Scheme
To boost progress in the manufacturing sector to 12-14% per annum over the intermediate-term and to put up the contribution of the manufacturing sector to 25% of the Gross Domestic Product (GDP) from its current 16%. It also targets to create 100 million additional jobs by 2022 in the manufacturing sector. Also, to increase domestic value addition and technological depth in the manufacturing industry.
5 Startups that are Contributing To Make In India Initiative
So, let us have a look at a few startups that are contributing to making Make in India initiative a successful one:
The online marketplace Shopclues hailed the ‘Make In India’ initiative by getting over 500 merchants on board from all over the country. The startup plans to bring out the work of Indian Craftsmen by displaying their products on a larger platform. It is also functioning with government bodies to facilitate local craftsmen and traders and help them participate in this eCommerce revolution.
Wearable health band startup Goqii has accomplished massive success in recent months. Founded by Vishal Gondal, the startup has recently secured funds worth $ 13.2 million from Ratan Tata. According to the market research firm’s recent IDC report on Q2, the fitness device grabbed the top position in India’s wearable market by gaining 16.1 percent shares. There is also an interesting observation that this Indian brand defeated the Chinese company Xiaomi, with other companies like Fitbit, Garmin and Huawei following them in the top five.
Grey Orange Robotics, the Gurgaon headquartered startup company, intends to deliver robots to the growing retail, consumer goods, logistics and eCommerce sector from all over the world. The global robotics firm supplies robots to warehouses to help them meet the challenges of warehouse automation space. Founded in 2011 by Samay Kohli and Akash Gupta, the startup has raised a Series A from Tiger Global and Blume Ventures.
Hike messenger was formulated by Bharti Softbank in 2012 to introduce free text messaging anywhere in India. The app recently raised $ 175 million in a Series D funding led by Foxconn and Tencent. Presently, the company has raised over $ 250 million. The messaging app has already introduced four international languages to increase its global audience and fight with the most significant competitor Whatsapp. The app is striving to make an impact on Indian users by introducing more and more Indian features.
Ather Energy Private Limited, a Bengaluru-based smart electric two-wheeler startup developed its first product, Ather S340 in Feb this year. The company founded by IIT- M Alumni Duo Tarun Mehta and Swapnil Jain raised $ 12 million from Tiger global and $1 million from Flipkart founders. The vehicle has a touch screen dashboard to offer various features like navigation, driving modes and user profile based sign in. The user profile will analyze the riding habits and give suggestions for better riding knowledge.
Success or Failure?
Make In India’s success is sure of a lot on the fate of the newer companies and startups. A mission which can go either way at this stage was envisioned by Narendra Modi as follows:
If each one of our millions of youngsters resolves to manufacture at least one such item, India can become a net exporter of goods. I, therefore, urge upon the youth, in particular, our small entrepreneurs that they would never compromise, at least on two counts:— first zero defect and, second again, zero effect. We should manufacture goods in such a way that they carry zero defects so that our exported goods are never returned to us. We should manufacture goods with zero effect so that they should not hurt the environment.
Make in India has the potential to make India a $5 trillion economy. If measures are not taken by the Indian government to improve the FDI inflow and create a favorable environment for the manufacturing sector, it may only be a distant dream. It is right to acknowledge that Make in India has been productive in achieving its promises of noble commitments. The dedicated site and easy mechanism for registering a business are what made India take considerable strides in its ranking across various inventories of economic growth.