INDIA@76: Make in India fuels FDI inflow

INTERNATIONAL DESK: Foreign Direct Investment (FDI) equity inflow in the manufacturing sector between 2014-2022 increased by 57 per cent over the previous eight years, 2006-2014, due to Make in India mission. This information has been provided by India’s Junior Minister for Commerce and Industry Som Parkash in the Parliament.

The Make in India initiative was launched on September 25, 2014, to facilitate investment, foster innovation, building best in class infrastructure, and Make in India a hub for manufacturing, design and innovation. The development of a robust manufacturing sector continues to be a key priority of the Indian Government. Since its launch, the Make in India initiative has made significant achievements and presently focuses on 27 sectors under Make in India 2.0. which is implemented across various ministries/departments, central government, and state governments, including Tamil Nadu.

The government has taken a series of policy initiatives to improve the economic situation and convert the disruption caused by COVID-19 into an opportunity for growth. These include the Atmanirbhar Bharat packages, the introduction of the Production Linked Incentive (PLI) Scheme in 14 sectors, investment opportunities under the National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), the soft launch of the National Single Window System (NSWS) among others. An institutional mechanism to fast-track investments has been put in place, in the form of Project Development Cells (PDCs) in all concerned Ministries/ Departments of the Government of India.

All the above initiatives/schemes are implemented across various Ministries/Departments, Central Government, and State Governments, including Tamil Nadu. Various global companies have either started some sort of manufacturing in India or have shown interest in India’s manufacturing sector. Earlier in July, the US chipmaker Advanced Micro Devices (AMD) announced that it would invest $400 million in India over the next five years. Amazon, the world’s largest e-commerce marketplace, has announced its plan to invest USD 1 billion to digitally enable MSMEs and traders across India.

There are more than 550,000 sellers on the Amazon India marketplace and more than 60,000 Indian manufacturers and brands exporting their Make in India products to customers worldwide on Amazon, reported NewsonAir. In addition to ongoing schemes of various Departments and Ministries, Government has taken various steps to boost domestic and foreign investments in India. These include the introduction of Goods and Services Tax, reduction in corporate tax, improving ease of doing business, FDI policy reforms, measures for reduction in compliance burden, measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP) and QCOs (Quality Control Orders), to name a few.

Production Linked Incentive (PLI) Schemes for 14 key sectors (with an incentive outlay of Rs. 1.97 lakh crore) are under implementation to enhance India’s manufacturing capabilities and exports. With the announcement of PLI Schemes, significant improvement in production, skills, employment, economic growth and exports is expected over the next five years and more. As of now, 733 applications have been approved across the country in 14 sectors including Tamil Nadu.

The One District One Product (ODOP) is an initiative aimed at fostering balanced regional development across all districts of the country. The initiative aims to promote at least one product from each district (One District- One Product) of the country for enabling holistic socio-economic growth across all regions. The ODOP initiative has identified more than 1000 products encompassing various sectors such as Textiles, agriculture, food processing, handicrafts and more from all 761 districts of the country. (ASIAN LITE)