n a significant move to bolster its manufacturing sector and reduce dependency on imports, the Indian government, through the Department for Promotion of Industry and Internal Trade (DPIIT), has launched an ambitious program titled “Make in India 2.0”. This initiative focuses on promoting domestic manufacturing, increasing exports, and cutting down imports across 24 strategically chosen sub-sectors.
Key Highlights:
- Diverse Sub-Sectors: The DPIIT is closely working with a diverse array of sub-sectors including furniture, air-conditioners, textiles, electronics, agrochemicals, steel, medical devices, and many more. These sectors have been selected based on their potential for export, need for import substitution, and their contribution to employment generation.
- Coordinated Efforts for Growth: Both the DPIIT and the Department of Commerce are working in tandem to enhance 15 manufacturing and 12 service sectors, respectively. Their goal is to strengthen the Indian industries by leveraging their competitive edge and unique strengths.
- Ease of Doing Business Reforms: Alongside sector-specific initiatives, broader reforms are being implemented to attract foreign direct investment (FDI). This includes the introduction of centralized KYC and PAN as a Single Business Identity, and the National Single Window System (NSWS) which simplifies G2B clearances and has processed over 2,55,000 approvals as of November 2023.
- Public Procurement Preference: The “Public Procurement (Preference to Make in India) Order, 2017” has been revised to prefer local suppliers, thus giving a substantial boost to domestic industries.
- Investment Facilitation: A significant focus is on investment outreach, identification, and facilitation, executed through various ministries, state governments, and Indian missions abroad. This is complemented by the work of Invest India, the national investment promotion and facilitation agency.
- Financial Indicators: A decline in India’s current account deficit to 1% of GDP in the second quarter of FY 2023-24, mainly due to a decrease in merchandise trade deficit and a growth in services exports, indicates a positive economic shift.
- One District One Product (ODOP) Initiative: This initiative aims to promote unique products in each district of India for global marketing, fostering balanced regional development.
Future Outlook:
Make in India 2.0 is not just about manufacturing; it’s a comprehensive strategy encompassing ease of doing business, attracting foreign investment, and creating a favorable environment for domestic industries to thrive. With these concerted efforts, the initiative promises to significantly contribute to India’s vision of becoming a global manufacturing hub and reducing its dependency on imports.
The success of Make in India 2.0 will likely hinge on the effective implementation of these policies and the sustained support from all stakeholders involved, from government departments to local industries and international investors.