MSME Sector in India - Relevance of ‘Make in India’ - Part - 5

Relevance of ‘Make in India’

MSME Sector in India

Part 5


India must become a manufacturing powerhouse in order to gainfully employ its demographic dividend. Its natural advantages like a big labor pool and a large domestic market are available enablers. In addition, China’s competitive advantage in terms of cost is fast eroding, being only marginally better than other developed countries.


India has the opportunity to take some share of global manufacturing away from China. This would be possible only if the prevalent process inefficiencies are solved through—improved infrastructure, ease of doing business, rationalized tax policies, labor reforms, enhanced skills, ease of land acquisition, implementation of Goods and Services Tax (GST) and fast track approvals.


Exhibit 8: Weakening China’s Cost Competitiveness


The "Make in India" initiative, will also tackle the key issue of “Ease of doing Business”. It will act as a first reference point for guiding foreign investors on all aspects of regulatory and policy issues and assist them in obtaining regulatory clearances.

The Centre has already allowed 100% Foreign Direct Investment (FDI) under the automatic route in construction, operation and maintenance in rail infrastructure projects and increased FDI in defense from 26 to 49 %.


The investor facilitation cell will assist the foreign investors from the time of their arrival in the country to the time of their departure, with focus on green and advanced manufacturing and helping these companies to become an important part of the global value chain. Key imperatives that have been undertaken to improve business process efficient include:


a) Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through eBiz portal. b) Validity of Industrial license extended to three years. c) States asked to introduce self-certification and third party certification under Boilers Act. d) Major components of Defense products’ list excluded from industrial licensing. e) Dual use items having military as well as civilian applications deregulated.


f) Services of all Central Govt. Departments & Ministries will be integrated with the E- Biz – a single window IT platform for services by 31 Dec. 2014. g) Process of obtaining environmental clearances made online. h) Following advisories sent to all Departments/ State Governments to simplify and rationalize regulatory environment. i) All returns should be filed on-line through a unified form. j) Checklist of required compliances should be placed on Ministry /Department’s web portal.

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MSME Sector in India - Relevance of ‘Make in India’ - Part - 5

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