Impact of ‘Make in India’ Program on Indian Economy

Abstract

Make in India” is an international tag plan, conceptualized by the Prime Minister of India, Narendra Modi on 25 September 2014 to entice investments from work around the world, and in the process, strengthen India’s manufacturing sector. The campaign has been concentrated to fulfill the purpose of job creation, enforcement to secondary and tertiary sector, boosting the national economy, converting India to a self-reliant country and to give the Indian economy global recognition. The “Make in India” also attempts to enforce the inflow of FDI in the country and improve services by partial privatization of loss–making PSUs. The campaign is completely under control of the central government of India. The major objective behind this initiative is to focus upon the heavy industries and public enterprises while generating employment, empowering secondary and tertiary sector and utilizing the human resources in India. The Indian government thinks this new target to put to use its vastly greater workforce to productive use, notice that service sector though give about 55-60% of the GDP cannot be the sole driver of the economy. India emerged, after initiation of the program in 2015 as the top destination globally for foreign direct investment, surpassing the United States of America as well as the People's Republic of China. The aim of start this work in India is to make India a world level manufacturing powerhouse which will definitely help in explaining the biggest issue of Indian economy. “Make in India” is much more than an inspiring slogan. It represents a comprehensive and unprecedented overhaul of out-dated processes and policies. Most importantly, it represents a complete change of the Government’s mindset – a shift from issuing authority to business partner, in keeping with Prime Minister's tenet of Minimum Government, Maximum Governance. The paper discusses the key objectives, major challenges as well as the various impact of ‘Make in India’ Program on Indian Economy.