The manufacturing industry is one of the key drivers of the economy in India. The Industry currently contributes around 15% to the GDP of the country but the government has set a goal for the country, aspiring for the sector to account for up to 25%of the GDP by 2025 and to make it a global manufacturing hub. To this end, the current government passed the Make in India initiative for the Automotive, Aviation, Biotechnology, Defence, Ports and Railway Sectors amongst others.
The said initiative seeks to push the growth of the manufacturing industry at a rate of 12-14% per annum in the medium term. It further aims at creating 100 million jobs in the sector by 2022 and the creation of specific skill sets among people living in rural areas to enable them to find employment in the said sector and encourage sustainable growth, especially with regard to the environment.
The objectives of the said initiative are to remedy the earlier sluggish growth in the sector, create domestic jobs and uplift people from poverty by providing them with non agricultural employment and inspire growth in infrastructure via innovative methods. The efforts being made to this end have resulted in a significantly changed outlook, reflected in the continuous improvements being seen in the sector. The Make in India website states that the National Manufacturing Authority is one of the most significant policies created by the government, and is the first to deal with all factors relevant to the growth of the sector including regulation, infrastructure, skill development, technology, availability of finance etc.
The mode of submission of returns has been simplified, with provisions for just one monthly/quarterly form that needed to be filled instead of the multitude that needed to be filled earlier. Timelines are now going to be provided for all clearances and the governments at both, the state and centre are to provide exemptions on regulations regarding labour, the environment etc.
Increased transparency, the lowering of barriers to entry and simplified regulations governing manufacturing coupled with Incentives being offered to companies Investing have the sector poised to reach previously unimagined heights.
Make in india, ” (www.makeinindia.com, ) <http://www.makeinindia.com/policy/national-manufacturing/> accessed 13 July 2015