Lok Sabha Question No. 1269 (UNSTARRED), answered on 2024-12-03
Subject: Impact of Make in India Initiative
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Bhola Singh

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1269.

TO BE ANSWERED ON TUESDAY, THE 03 RD  DECEMBER, 2024.

## IMPACT OF MAKE IN INDIA INITIATIVE

## 1269.  DR. BHOLA SINGH:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether there has been an increase in job creation as a direct result of 'Make in India' initiative, if so, the details thereof;
- (b) the details of current progress of 'Make in India' initiative in increasing domestic manufacturing and reducing import dependency;
- (c) the  details  of  specific  measures  taken  to  attract  foreign  investment  into  key industries,  especially  in  emerging  sectors  like  electronics  and  renewable energy; and
- (d) the  future  plans  to  enhance  the  competitiveness  of  Indian  industries  in  the global market?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (d): 'Make in India' Initiative was launched on 25th September, 2014 to facilitate investment,  foster  Innovation,  build  best  in  class  Infrastructure,  and  make India a hub for manufacturing, design, and innovation. It is one of the unique 'Vocal for Local' initiatives that promoted India's manufacturing domain to the world. Investment outreach is being done through Ministries, State Governments  and  Indian  Missions  abroad  for  enhancing  International  cooperation for promoting Domestic and Foreign Direct Investment (FDI) in the country.  Presently,  Make  in  India  2.0  focuses  on 27 sectors implemented across various Ministries and Departments and State Governments. The list of sectors under Make in India 2.0 is placed at Annexure.

In  addition  to  ongoing  schemes  of  various  Departments  and  Ministries, Government  has  taken  various steps to boost domestic and  foreign investments in India. These include the introduction of Goods and Services Tax, reduction in corporate tax, improving ease of doing business, FDI policy reforms,  measures for reduction  in  compliance  burden, measures to  boost domestic manufacturing through public procurement orders, Phased Manufacturing  Programme  (PMP)  and  QCOs  (Quality  Control  Orders),  to name a few.

Production  Linked  Incentive  (PLI)  Schemes  for  14  key  sectors  (with  an incentive outlay of Rs. 1.97 lakh crore) are under implementation to enhance India's manufacturing capabilities and exports. With the announcement of PLI Schemes, significant improvement in production, skills, employment, economic growth and exports is expected over the next five years and more. As  of  now  755  applications  have  been  approved  across  the  country  in  14 sectors.  Total  employment  in  manufacturing  sector  has  increased  from  57 million in FY 2017-18 (Economic Survey 2020-21) to 64.4 million in FY 202223 (Economic Survey 2023-24).

The series of measures taken by the Government to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for  growth  includes  Atmanirbhar  packages,  investment  opportunities  under National  Infrastructure  Pipeline  (NIP)  and  National  Monetization  Pipeline (NMP),  India  Industrial  Land  Bank  (IILB),  Industrial  Park  Rating  System (IPRS), soft launch of the National Single Window System (NSWS), etc. An institutional mechanism to fast-track investments has been put in place, in the form  of  Project  Development  Cells  (PDCs)  in  all  concerned  Ministries/ Departments of Government of India.

- (b): To enhance domestic supply, and reduce dependency on imports, Government of  India  has  taken  several  initiatives.  Under  'Make  in  India'  initiative,  the Government has launched Production Linked Incentives (PLI) Schemes in 14 critical  sectors  like  electronics,  pharmaceuticals,  white  goods,  telecom  and Networking products, etc., where there is substantial dependency on imports. For development of semiconductors and display manufacturing ecosystem, the Government  has  approved  Semicon  India  Programme  with  financial  outlay of     Rs.  76,000  cr.  The  Government  has  also  introduced  stricter  quality standards and measures for quality controls, testing protocols, and mandatory certification to check substandard & poor-quality products in the market and protect consumer's interest. The Government also encourages Indian business establishments  to  explore  alternative  suppliers  and  to  diversify  their  supply chains to reduce dependency on single source of supply. Also, the Government monitors the surge in imports on a regular basis and takes appropriate action.

The initiatives taken by the Government have led to decline in dependency on imports  in  several  sectors.  For  example,  the  import  of  mobile  phones  has decreased from Rs 48,609 cr. in 2014-15 to Rs. 7,665 cr. in 2023-24. On the other hand, the export of mobile phones has increased from Rs. 1,566 cr. in 2014-15 to more than Rs.1,28,982 cr.  in  2023-24.  In  the  recent  period,  the decline in imports has also been observed in sectors like electronics, organic chemicals and fertilizer crude where imports have declined by 45.1%, 31.3% and 42.2%, respectively.

- (c): In  recent  years,  India  has  been  an  attractive  destination  for  FDI.  India  has embarked  on  a  series  of  reforms  aimed  at  liberalizing  its  Foreign  Direct Investment (FDI) policies, to stimulate economic growth and encourage foreign capital inflows. To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically  important  sectors,  are  open  for  100%  FDI  under  the  automatic route. More than 90% of the FDI inflow is received under the automatic route including that of sectors involving electronics and renewable energy. National Single Window System (NSWS) has also been launched as the online single point interface of the Government of India for investors to start any industry in India and take requisite permissions.

Further,  to  ensure  that  India  remains  an  attractive  and  investor-friendly destination, the Government reviews FDI policy on an ongoing basis and makes changes from time to time after having intensive consultations with stakeholders including apex industry chambers, Associations, representatives of  industries/groups  and  other  organizations  taking  into  consideration  their views/comments.

FDI policy provisions have been progressively liberalized and simplified across various sectors such as Pension, Other Financial Services, Asset reconstruction  Companies,  Broadcasting,  Pharmaceuticals,  Single  Brand Retail Trading, Construction & Development, Power Exchanges, e-commerce activities, Coal Mining, Contract Manufacturing, Digital Media, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas and Telecom. Further, in order to protect domestic industry and curb opportunistic takeover during the COVID-19 pandemic, foreign investment coming directly or indirectly from land border countries now require prior Government approval.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 1269 FOR ANSWER ON 03.12.2024

## Manufacturing Sectors:

- i. Aerospace and Defence
- ii. Automotive and Auto Components
- iii. Pharmaceuticals and Medical Devices
- iv. Bio-Technology
- v. Capital Goods
- vi. Textile and Apparels
- vii. Chemicals and Petro chemicals
- viii. Electronics System Design and Manufacturing (ESDM)
- ix. Leather & Footwear
- x. Food Processing
- xi. Gems and Jewellery
- xii. Shipping
- xiii. Railways
- xiv. Construction
- xv. New and Renewable Energy

## Service Sectors:

- xvi. Information Technology & Information Technology enabled Services (IT & ITeS)
- xvii. Tourism and Hospitality Services
- xviii. Medical Value Travel
- xix. Transport and Logistics Services
- xx. Accounting and Finance Services
- xxi. Audio Visual Services
- xxii. Legal Services
- xxiii. Communication Services
- xxiv. Construction and Related Engineering Services
- xxv. Environmental Services
- xxvi. Financial Services
- xxvii. Education Services