Make In India
Excerpts from Make In India Policy Highlights and Provisions by Vikram Sivaraman
In fact going by the positive outlook created by the initiative, on the ground reality India does start from a disadvantageous point. The points that support it are that the current manufacturing sector only contributes 16% of the overall GDP in addition to lack of enabling infrastructure, a perception not a best place to do business and lack of proven ability to set a platform to compete at a global scale. But at this juncture the points that favour it to look at this initiative as a long term prospect stems from the fact that it has a strong core human resource along with a robust growing domestic demand in addition to the strong base of entrepreneurs. Through the Make in India (MII) initiative the Government of India aims to take the GDP to 25% by 2022.
For the initiative to kick-off major new initiatives have been designed to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure.
Improvement In Process
- Setting up an e-portal to apply for Industrial License & Industrial Entrepreneur Memorandum 24x7.
- Creating a transparent and faster environment to de-licence and de-regulate measures that increase complexity.
- Increasing the validity of Industrial Licence to 3 yrs
- Excluding a major list of components of Defence products’ list from Industrial licencing.
- De-regulating those items that have both military and civilian applications.
Improvement In Infrastructure
To better facilitate India’s manufacturing and design initiative the infrastructure and capacity is poised for phenomenal growth: new smart cities and industrial clusters, being developed in identified industrial corridors having connectivity, new youth-focused programs and institutions dedicated to developing specialized skills.
- There is a new impetus to develop smart cities and industrial corridors - On a pilot basis work is in progress along the following Industrial Corridors:
- Delhi-Mumbai Industrial corridor to develop 5 smart cities like: Mumbai Industrial Corridor: Dholera, Shendra-Bidkin, Greater Noida , Ujjain and Gurgaon
- Along the Chennai-Bangalore Industrial Corridor master planning of Tumkur, Ponneri & Krishnapatnam is in progress.
- A feasibility study to see the viability of The East Coast Economic Corridor (ECEC) with Chennai-Vizag Industrial Corridor has been initiated.
- Amritsar-Kolkata Industrial Corridor
- North-eastern part of India planned to be linked with other Industrial corridors - Modified Industrial Infrastructure Up gradation Scheme has been approved for 21 Industrial Projects to:
- Re-cycle water through zero liquid discharging systems.
- Central Effluent Treatment plans.
Provisions created during the Union Budget 2016-17
- To promote start-ups innovate, generate employment & be a key ingredient part of the MII initiative there is a proposed 100% deduction of profits for three out of five years for start-ups set up during April 2016 to March 2019 with a minimum alternate tax in place.
- Granting “Residency Status” advanced nations and proposed to grant foreign investors on satisfying certain conditions. -Allocation of Rs.1,808 crores towards the scheme for Investment Promotion and Amended Technology Upgradation Fund.
- Change in Custom and Excise Duty to bring down costs and improve competitiveness of the domestic industry in sectors like information technology hardware, capital goods, defence production, textiles, mineral fuels and mineral oils, chemicals and petrochemicals, paper, paperboard and newsprint as well as in Maintenance Repair and Overhauling (MRO) of aircraft and ship repair.
A few positives as a result:
Some of the projects currently visible under the MII initiative to think as a success story in the making:
- US-based First Solar Inc and China’s Trina Solar have plans to set up manufacturing facilities in India. Clean energy investments in India increased to US$ 7.9 billion in 2014, helping the country maintain its position as the seventh largest clean energy investor in the world.
- Hyderabad has in its plans to become the mobile phone manufacturing hub in India for which it expects to to create 150,000 – 200,000 jobs.
- General Motors plans to invest nearly USD 1 billion by 2020 to increase its capacity in Maharastra.
- Hyundai Heavy Industries (HHI) and Hindustan Shipyard Ltd have joined hands to build warships in India. Besides, Samsung Heavy Industries and Kochi Shipyard will be making Liquefied Natural Gas (LNG) tankers.
- In 18 August 2015, Lenovo announced that it had begun manufacturing Motorola smartphones at a plant in Sriperumbudur near Chennai, run by Singapore-based contract manufacturer Flextronics International Ltd.
- On 16 October 2015, Boeing chairman James McNerney said that the company could assemble fighter planes and either the Apache or Chinook defence helicopter in India. The company is also willing to manufacture the F/A-18 Super Hornet in India if the Indian Air Force (IAF) were to purchase it.
- On 30 November 2015, the Ministry of Railways signed formal agreements with Alstom and GE Transport worth 400 billion (US$5.9 billion) to set-up locomotive manufacturing factories in Madhepura and Marhaura in Bihar.
- With the slogan “Zero Defect Zero Effect” coined by Prime Minister of India, Narendra Modi the future projects from the manufacturing sector are aimed at truly and effectively making India a super power in manufacturing for which the MII was envisioned.
Mr. Vikram Sivaraman is the Assistant Vice President [Business Analysis] whose qualifications include a Master’s degree in Communication Engg, Business and Administration; and working knowledge in Education, IT, Banking and Finance, Hospitality and Telecom domains. He is a trained and working practioner in the Business Analysis. Six+ years of industrial experience having worked in different roles as RF Engg in a leading Telecom MNC (Huawei Telecom), team-member of successful commercial GSM launch projects like Reliance, IDEA and BSNL and Retail Analyst in NZ, Senior Business Consultant for SharePoint (SP) related Projects in Construction & Supply Chain.