Pradhan Mantri Make in India [ Detailed Analysis (CA/GS) - Policies & Governance ]
Narendra Modi, launched this scheme to bring development and investment to the country. According to the ruling government, to generate fresh employment, bring foreign direct investment, and to change the landscape of the country, few sectors need to be developed.
The prospective industries include, automobiles, automobile components, aviation, biotechnology, chemicals, construction, defense manufacturing, electrical machinery, electronic systems, food processing, IT and BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textiles and garments, thermal power, tourism and hospitality and wellness are some of the common sectors determined by the campaign.
- India being 4th largest automobile market by volume and at the same time it is the seventh largest producer of automobile in the world. 7% of the entire nations GDP is contributed by the automobile industry.
- Potential of automobiles industry cannot be ignored. There is both a potential from manufacturing perspective as well as sales.
- Aviation is amongst the fastest growing industry globally. Due to the large size of population in the country, India has the ninth largest civil aviation market.
- 163 million passengers were there in India in year 2013. The number of international passengers to and from India is expected to be 60 million by year 2017.
- India needs more than 800 aircrafts in house to be the third largest aviation market by year 2020.
- India is one of top 12 biotech destinations in the world. It ranks third in the Asia pacific region. Long history of medicinal research in older streams like Ayurveda and trained manpower, make India one of the best destinations for biotechnology research.
- India is already the leading producer of recombinant hepatitis B vaccine and has the ability to be one of the biggest producer of transgenic rice and other engineered food crops and vegetables.
- The Biotechnology Industry in India has grown from $1.1 Billion in 2005 to $7 Billion in 2015 and is expected to reach $11.6 Billion in 2017.
- India is the 6th largest producer of chemicals in the world. A vast workforce of youngsters, huge domestic market dependence on agriculture and strong export demand are the key growth drivers for the industry.
- The estimated size of the market is USD 144 Billion, the GDP share being 2.11%.Trade in most of the chemicals is free except for those attracting provision of international conventions.
- Polymers and agro-chemicals industries in India present immense growth opportunities.
- Construction sector in India will remain uplifted due to increased demand from real estate and infrastructure projects. More than 8% of India’s GDP is contributed by this industry.
- The construction sector is reported as having second highest inflow of FDI after the services sector and offer jobs to more than 35 Million people.
- According to the industry experts, the Indian real estate market is estimated to be approximately USD 78.5 Billion in 2013 and is expected to grow to approximately USD 140 Billion by 2017.
- A new urban development mission is being processed by the government of India developing 500 cities, which include cities with a population of more than 100,000
- Market-needed reforms, such as the target of ‘Power for All’ and plans to add 88.5 GW of capacity by 2017 and 93 GW by 2022 are under development. This huge opportunity can only be sustained by the foreign investments. There is a large pool of human resources to utilize the advancements in technologies.
- During the last 10 years, exports have increased at a CAGR of 18.16% to touch USD 5.76 Billion in 2015-16.
- Estimated output by 2022 is USD 100 Billion.
Food Processing Sector
India is to be a rich agriculture resource base consisting of 195.25 Million Hectares of Gross Cropped Area, 65.26 Million Hectare of Net Irrigated Area, 127 agro-climactic zones, and 42 mega food parks (being set up with an allocated investment of INR 98 Billion.)
- In terms of production of bananas, mangoes, papayas, chickpeas, ginger, lemons & limes, whole fresh buffalo milk, goat milk and buffalo meat, India is No.1 in the world in 2013.
- The cost of good labor is relatively low as compared to other countries.
- Food is the biggest expense for an urban and rural Indian household constituting share of 38.5% and 48.6% of the total consumption expenditure of households in 2011-12 respectively.
There are a number of sectors with growth options for the investors from India and abroad. It would benefit in development of the country.
MAKE IN INDIA is an advanced initiative with more focused campaign, which would make India not only a self-sustained economy but also an exporting nation.
- Published on: September 22, 2016