The Prayas ePathshala

Exams आसान है !

The Guidelines:

The Indian government’s flagship effort, Made in India, was introduced in 2014 with the goal of increasing domestic production and making India a hub for global manufacturing.
The campaign was started in order to establish world-class industrial infrastructure, safeguard intellectual property, encourage innovation, improve talent development, and ease investment.

Goals:

Raise the manufacturing sector’s annual growth rate to 12–14%.
Increase the number of manufacturing jobs by 100 million by 2022 (updated to 2025).
By 2025, raise the manufacturing sector’s share of the GDP to 25%.

Techniques:

Streamlining commercial Processes: To facilitate commercial transactions for enterprises operating in India, bureaucratic obstacles are being reduced and rules are being made simpler.
Developing Infrastructure: Modernising power plants, ports, railroads, and highways to offer dependable and effective infrastructure for business.
Investing in skill development initiatives to generate a skilled labour pool for the manufacturing industry is known as “skilling the workforce.”
Encouraging Investments: To encourage both domestic and foreign investment in manufacturing, offer tax breaks, subsidies, and other forms of inducement.
Concentrating on Key Sectors: Putting particular industries, such automotive, aerospace, military, electronics, and pharmaceuticals, at the forefront of growth.
Derivatives: Made in India and Made for India are at least two further derivatives of MII.
A product that is produced or assembled in India is referred to as being “made in India,” even if the individual pieces were made somewhere else.
In essence, it’s a branding strategy designed to support manufacturers that originated from Indian sources of production, including as land, labour, capital, entrepreneurship, and technology.
Producing goods for consumption within India and concentrating on home market manufacturing is known as “make for India.”

What Justification existed for the Launch of MII?

As a follow-up to past programmes such NIP 2011, Liberalisation of Economy, etc., which aimed to develop a strong and competitive manufacturing sector, MII was introduced in 2014.
A complex and (corrupt) regulatory environment, a lack of skilled labour, and inadequate physical infrastructure all hindered the growth of the Indian manufacturing sector.
The goal of MII was to generate 100 million more jobs and increase manufacturing’s share of GDP from the 15% it had been at the start of the 1980s to at least 25%.
To say that it failed would be to state the obvious.
It was intended “to transform India into a global design and manufacturing export hub,” in addition to the dynamic goals of the National Manufacturing Policy (NMP) 2011. Stated differently, MII for everyone.

What are MII’s achievements and shortcomings?

Achievements:

India rose from 142nd in 2014 to 63rd in 2020 in the World Bank’s Ease of Doing Business Index.
India allowed private and international participation in a number of industries, including civil aviation, railroads, and defence.
India had growth in a number of industries, including textiles, electronics, cars, and renewable energy.
With more than 200 factories generating more than 225 million phones in 2017–18, India emerged as a global leader in the mobile phone manufacturing industry.

Issues:

India was unable to establish a specialised market for its goods and services on a global scale.
India failed to meet its goals of producing 100 million new jobs, raising the manufacturing sector’s GDP contribution to 25% by 2025, and accelerating manufacturing growth to 12–14% annually.
India had to deal with obstacles like trade protectionism, a lack of competitive edge, investment constraints, policy paralysis, infrastructural bottlenecks, labour disputes, etc.

What caused MII to fall short of its goals?

The production-linked incentive (PLI) scheme was implemented as part of MII with the aim of luring investments in innovative technology and important industries, guaranteeing efficiency and bringing economies of scale and size to the manufacturing sector, and boosting the competitiveness of Indian businesses and manufacturers worldwide.
The other objectives are really the cherry on top; the main objective, which was to create jobs for our large labour force—especially women—has not been met.
Manufacturing that requires a lot of manpower is the only way to accomplish this. China serves as an illustration of how manufacturing scale affects employment growth.

Can MSMEs find a solution to the jobs conundrum?

According to labour market research conducted in India, the unorganised sector employs a large number of people in primarily informal, low-paying employment with low productivity.
The unorganised sector comprises over 99% of India’s 63 million micro, little, and medium-sized firms (MSMEs), offering minimal opportunities for creating profitable jobs.
Their meagre means of subsistence is hardly a formula for employment or growth.

What therefore must be done in order to create jobs?

A clearly defined National Industrial Policy is required for industries like toys, ready-made clothing and shoes, etc., in addition to PLI.
PLI works well for luxury manufacturing, but the greatest way to create large numbers of jobs is through industrial strategy.
Industrial policy is required to shape the plentiful factor of productive job creation in a labor-rich nation with average educational attainment and skill sets.

How can the National Industrial Policy support the creation of jobs?

Encouraging and assisting both new and established industries to increase their output, exports, and innovation. This may lead to a rise in the industrial sector’s need for manpower and skill sets and more job openings.
constructing power, ports, roads, and digital networks, among other infrastructure and connectivity, to enable the flow of people, products, and services. This might raise industry productivity and competitiveness while adding jobs in the building and maintenance sectors.
improving the workforce’s skills and capacities through programmes for lifelong learning, education, and training so they can better meet industry expectations. This may raise labour force productivity and quality and lead to an increase in employment in high-value, knowledge-based industries.
encouraging innovation and entrepreneurship by implementing laws and initiatives that support the founding and expansion of social, small, and medium-sized businesses as well as startups. More jobs in the burgeoning and dynamic industries may result from this, as well as the promotion of an innovative and creative culture.
coordinating industrial policy with social and environmental objectives, including reducing poverty, promoting gender parity, and mitigating the effects of climate change. By doing this, we can make sure that industrial development is responsible, sustainable, and inclusive while also increasing employment in the social and green sectors.

Way Forward:

For India’s large labour force to have access to possibilities for gainful employment, a national industrial policy is required. The administration, however, has decided to postpone the new industrial policy (NIP ’23), which has been in the works for more than two years.