India’s Make in India Initiative is to Grow Its Investments and Manufacturing Sector
Every nation or country in the world desires to be a choice destination for foreign direct investments. For several years now, India has been attracting foreign direct investment to its shores through its Make In India initiative. It envisions India to become the next global manufacturing hub. The campaign is rallying everyone from the central government to the state government to the citizens to participate actively.
Ambition for the Nation
When a country becomes a destination for manufacturing, it creates a whole ecosystem that will benefit the citizens as well as investors. The intention to increase manufacturing growth will spur job creation for the local community. The following benefit will be knowledge transfer or knowledge sharing to ensure output production is in line with global quality. India also hopes as it transforms into a global manufacturing partner, it will increase contribution to the country’s GDP. To ensure all this could become a reality, India reforms its outdated processes and policies.
Government policies play an essential role when attracting foreign investment into the country. Hence, the Make In India initiative is a turning point for the government to review, revise and reform its processes and policies. India irons out its business engagement policies by aligning it with the Ease of Doing Business index. The Ease of Doing Business index is a global measure of how easy it is to do business in a country. To date, India is now at 63rd place among 190 nations for ease of doing business. It has modified and simplified processes in areas of starting a business, dealing with construction permits, trading across borders and resolving insolvency. There are other matters as well, but these four areas are essential to attract and accommodate foreign investors’ needs. All these are in line with Make In India campaign to attract, encourage and sustain foreign investments.
Sectors for Investments
Make In India initiative opens up 25 sectors for investments. They are automobile, automobile components, aviation, biotechnology, chemicals, construction, defence manufacturing, electrical machinery, electronics systems, food processing, information technology and business process management (IT & BPM), leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textiles, thermal power, tourism and hospitality as well as wellness. Among all of these sectors, India has attracted more foreign investors in the manufacturing of electronics, especially smartphones, manufacturing and production. Automobile giants from Europe and Korea also have manufacturing plants in India. Several sectors are even open to one hundred per cent foreign investment and automatic route.
Make It in India
India is poised to rival China in becoming a global manufacturing partner for investors worldwide. With its stable politics, skilled labour force, language barrier-free, and the drive to be part of the worldwide supply chain, investing in India could be your best next move.