The 'Make in India' initiative, launched by the Indian government back in 2014, is showing significant promise, especially as it pertains to boosting local manufacturing across various sectors. From electronics to defense, this movement has been pivotal in shifting the manufacturing narrative within India, as the country aims to emerge as one of the leading manufacturing hubs of the world.
One of the most notable impacts has been observed within the electronics sector, where major companies like Samsung and Apple are reportedly importing less than ever before. According to recent reports, this trend marks what could be the first significant drop in imports for these companies, attributed largely to the effective implementation of the 'Make in India' initiative. This ambitious project has encouraged local sourcing of components and spurred domestic manufacturing, with mobile phone localization levels steadily increasing alongside major strides made by home appliances, which have achieved significant local sourcing as well.
On the defense front, the initiative has propelled India’s defense manufacturing output to remarkable heights. Reports suggest the country’s defense production surged to INR 1.27 lakh crore (approximately $15.4 billion) for the fiscal year 2023-24, showcasing a phenomenal growth of 32.5% from the previous year. With the government aiming for even more ambitious targets, there is hope to reach INR 1.75 lakh crore by 2025. This progress signifies not only increased capabilities within India’s military apparatus but also the advancing of self-reliance, famously known as "Aatmanirbhar Bharat."
During the CNBC-TV18 Global Leadership Summit, Sajjan Jindal, the Chairman and Managing Director of JSW Group, highlighted the necessary investments needed to fully realize India's manufacturing potential. He emphasized the need for about $20 billion annually to strengthen India's steel industry alone to meet increasing demand. Jindal cautioned about the challenges faced by smaller players and suggested focusing on boosting manufacturing output before opening up to competition. He believes the country should bolster its contribution to GDP from manufacturing – which currently sits at only 17% – to around 25% to 30%, similar to levels seen in manufacturing powerhouses like China and the United States.
The 'Make in India' campaign has not only focused on large corporations but has also made room for small and medium enterprises (SMEs). The apparel export sector, for example, has witnessed growth attributed to sustainable manufacturing practices, with leading figures from the Apparel Export Promotion Council (AEPC) stating their commitment to quality and sustainability has drawn international buyers. This goes to show the diverse impacts the initiative is creating across the socioeconomic spectrum.
This cultivation of local industry has led to the rise of domestic startups and manufacturers, showcasing innovations previously lost amid weak domestic production. Now, these homegrown companies are not just filling gaps but are becoming pivotal players not just locally but globally, as they position themselves to compete on the international stage.
The benefits of the 'Make in India' initiative extend beyond just production statistics. They address the need for job creation, as manufacturing is known to generate considerably more jobs compared to other sectors. The drive has led companies to recruit more personnel, which fuels economic growth and contributes to improved living standards across the nation. If successful, this endeavor could significantly reduce India's unemployment rate, which for decades has been encumbered by slow job generation.
Yet, challenges remain. One of the prominent concerns is the need for continuous government support, particularly related to policy frameworks and ease of doing business; any setbacks could reverse the gains made so far. Policymakers are urged to maintain initiatives to protect and encourage local manufacturers, particularly amid increasing pressure from international competitors.
Despite these hurdles, the groundwork laid by 'Make in India' is well-received, fostering hope and resilience within the manufacturing community. If powerful voices like Sajjan Jindal along with the backing of the Indian government persistently advocate for growth-driven policies and initiatives, the path laid out by 'Make in India' looks promising.
Overall, the narrative behind 'Make in India' isn't merely about reducing imports; it's about enabling India to carve out its place on the global manufacturing map, transforming it from just being consumers of goods to becoming producers and exporters on the world stage.
