Make in India
initiative received a warm response from the global fraternity. As per
Department of Industrial Policy and Promotion, for the entire 2015-16 fiscal
ended March 31, the inflow grew by 29% to $40 billion compared to $ 30.93
billion in 2014-15. As per estimates, India’s foreign direct investment is
likely to cross $ 60 billion even though FDI flows globally are set to witness
a decline as a result of favourable policy environment. Towards further
enhancing effectiveness, government in its recent budget has allocated Rs. 1804
crore towards the scheme for investment promotion and Amended Technology
Upgradation Fund.
In addition,
several policies towards further enhancing its effectiveness have been framed. Intellectual
Policy Rights Policy, a critical policy that recognises abundance of creative
and innovative energies potential in the country, got approved by the union
cabinet recently laying the future roadmap for intellectual property in India.
Towards reducing dependency on natural resource, “Pradhan Mantri Ujjwala
Yojana“ scheme has been introduced for providing free LPG connections to women
from Below Poverty Line (BPL) households. Under the scheme, Rs. 8,000 Crore has
been earmarked for providing five crore LPG connections to BPL households. To facilitate
start-up to innovate, generate employment and become stakeholders in MII
programme, govern ment has proposed 100% deduction of profits for three out of
five years for start-ups during April 2016 to March 2019. Customs and Excise
Duty rates on certain inputs, raw materials, intermediaries components and
other goods were reduced while several procedures were simplified to curtail
costs and facilitate competitive enhancement of the domestic industry in
sectors like Information Technology hardware, capital goods, defence
production, textiles, mineral fuels and mineral oils, chemical and
petrochemicals, paper, paperboard and newsprint along with maintenance repair
and overhauling of aircraft and ship repair. India’s growth rate has been
pegged at 7.6% in 2016-17 with moderate growth of 7.7% in 2017-18 by World
Bank. In order to sustain growth, India needs robust infrastructure support
towards managing uninterrupted productivity.
Power and
electricity plays a critical role in this regards and government of India
recognises its importance towards building a progressive nation. It has
initiated plans towards alternative power solution through solar and wind
energy. India’s plan to ramp up solar power generation to 100 GW by 2022 is
among the largest in the world. Although India is the third-largest producer
and consumer of electricity in the world after the US and China, an estimated
27% of the energy generated in India gets lost during transmission or is
stolen. Peak supply falls short of 9%, and power outages last for an average of
10 hours in states such as Meghalaya, Andhra Pradesh, UP, J&K, Andaman and
Nicobar, Bihar and Tamil Nadu. This has led to augmented adoption of gensets,
which are used to solve power outages in the country.
The next resource
that needs to be conserved is human resource. In order to sustain robust
manpower, a nation must have healthy individuals. A fast-paced life style has
become the norm amongst Indians today. The practice of consuming excess food or
junk food at odd hours has resulted in protein deficiency making individuals
prone to health related problems. Hence, healthy nutrient products and
supplements have found acceptance amongst country’s masses. As per estimates,
Indian market alone is currently pegged at around Rs 4205 crores and is likely
to be double in revenue by 2020. With increasing population, maintaining
balance with nature has become difficult for city planners. Demand for
commercial and residential space has led to a spurt in property prices in
cities like Mumbai, Pune, Bangalore, Delhi and Hyderabad. In such a scenario,
providing affordable housing for lower middle incomemiddle income group becomes
a challenging task. Urban problems namely land encroachment, unauthorised
construction and slum become a daunted scenario for the citizens. Government
has initiated Skilled India campaign for upgrading technical knowledge of
marginal labour. Even though skills can be upgraded, it becomes ineffective if
the individual has to worry about buying a house in the city. To resolve this
issue, government can explore the possibility of providing temporary
ecofriendly portable cabins on rental basis for a fixed period supporting
economically weaker section. This will tackle the problems of unauthorised
construction encroachment and destruction of environment due to unplanned
construction.
Funding requirement
is a necessity for all development activities. A financial inclusion programme
that caters to all segment of stakeholders in a development system becomes the
need of the time. Taking a clue, government has initiated several policy
measures towards attracting FDI in key sectors. For illustration, government
has allowed 100% FDI in aviation sector for scheduled carriers, 100% in
defence, 74% in pharmaceuticals, 100% in teleports, DTH and cable networks with
government approval required above 49% investment and 100% in e-commerce
sector.
In addition, the
Micro Finance Institution Sector has been recognised as a financial
institution, for example Micro Finance Bandhan becoming a scheduled commercial
bank in FY 16, 7 NBFC-MFI and one core investment company having a NBFC-MFI as
subsidiary are likely to transform into SFBs by March 2017. Further, government
through RBI has recognised another mode to funding individuals through
initiating process towards regularising peer-to-peer(P2P) lending.
It shall cater to the needs of individual’s fund requirement who despite of
credit worth profile, get excluded due to small amount size or no credit
history or paperwork.
‘Make in India’ can
only be sustained through the support of various critical sectors.To achieve
this, the government has been focussing on critical segments simultaneously.
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