In India Manufacturing has come up as a high growth sector, the Prime Minister of India introduced the Make in India to place the country on world map as a manufacturing hub, and the Government of India has the goal to create the more than 100 million jobs by 2022 in manufacturing sector.
The initiative Make in India has given a path to be the hub for the various manufacturing units, the following companies have set up or they are planning to set up their manufacturing units in India seeing the attractive market and more than billion consumers:-
It has become the most attractive place for the investment for the manufacturing, below are the developments and investments in India
- Sterling and Wilson Solar Limited got an Engineering Procurement Construction contract for Rs 2,600 crore (US$ 368.85 million in Australia – May 2020).
- State-run Bharat Earth Movers (BEML) manufactured first metro coach under the ‘Make-in-India’ initiative. ( September 2019)
- Kolkata based Berger Paints India Ltd got the 95.53 per cent stake of STP Ltd (STPL), this is into waterproofing and protective coatings.(October 2019)
- Vivo Planned to invest 3500 crore (August 2019)
- One plus launched smart tv in India(September 2019)
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Steps being taken by the Government to provide the environment for the growth of the manufacturing units in the country:-
- The Government increased FDI from 49% to 74% in defense manufacturing (May 2020) and approved 100% FDI in contract manufacturing under the automatic route. (August 2019).
- The Government also issue a License under Advance Authorisation Scheme which will allow the import of raw materials at zero customs duty to manufacture the export products, and the duty saved amount can be used to enhance the product quality to use it as working capital for the business.
- To develop the world-class infrastructure with additional facilities and amenities the government-approved financial assistance to the Modified Electronics Manufacturing Clusters.
- Under the Make in India initiative government aims to increase the manufacturing units share in GDP to 25% by 2025.
- The Government of India introduced various export incentive schemes to promote the exports from the country like MEIS Scheme for the exporters of the goods/SEIS Scheme for the service exporters/RoDTEP Scheme to reimburse all the duties and taxes on the export products. EPCG Scheme is issued under EPCG Scheme to manufacture exporters to import machinery without paying customs duty.
- In India 723 Pradhan Mantri Kaushal Kendras (PMKK) was established till Jan 2020 and 73 lakh people were trained in PMKK.
- At Present, there are 14,602 Industrial Training Institutes (ITI) in India.
- The government launched the Pradhan Mantri Kaushal Vikas Yojana under which 19.85 lakh people were trained, out of which 2.62 lakh got placements (13.23 %), 52.12 lakh people got trained in October 2016 and 12.60 got jobs.
With the aim to create 400 billion US$ electronics manufacturing units in India Government launched a National Policy on Electronics (NPE).
For making India Global hub in electronic manufacturing and to reduce the import dependency on other country and to boost domestic manufacturing and export of electronics and semiconductor devices Government launched following schemes which are worth of Rs 50,000 crore :-
Production Linked Incentive Scheme (PLI):-
Scheme will give the incentive of 4% -6% on the incremental sale, which is applicable from 1st august.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors:-
SPECS will give the benefits of 25% on the capital expenditure of notified electronic goods and components.
Modified Electronics Manufacturing Clusters Scheme:-
Scheme shall provide the assistance to create the better environment for manufacturing, the Government extended the FTP for one more year, and the validity also increased for all the export benefits including the SEIS Scheme, MEIS Scheme for the service/goods exporters.