Make in India: An Overview

The Make in India initiative was launched by the Government of India on 25th
September 2014 to transform India into a global manufacturing hub by
encouraging both domestic and foreign investment in the country. It aims to
boost the manufacturing sector, increase job creation, and enhance economic
growth.

1. Program
 Launched by Prime Minister Narendra Modi in 2014.
 Objective: To encourage companies to manufacture in India and boost
domestic production.
 Focus on FDI (Foreign Direct Investment), skill development, and
infrastructure development.
 Promote self-reliance under the Atmanirbhar Bharat Abhiyan.

2. Policies
 FDI Liberalization: Increased foreign investment limits across various
sectors like defence, retail, and insurance.
 National Manufacturing Policy (NMP): Targets increasing the
manufacturing sector’s contribution to GDP to 25% by 2025.
 Production-Linked Incentive (PLI) Schemes: Incentives for domestic
and global manufacturers to invest in India.
 Startup India & Standup India: Encouraging entrepreneurship and
innovation.

3. Process
 Single Window Clearance: Digitized and simplified business approvals.
 E-Governance and Online Portals: Implementation of DPIIT’s
(Department for Promotion of Industry and Internal Trade) Business
Reform Action Plan.
  Self-Certification Compliance: Reduction of bureaucratic delays for
businesses.
 Fast-Track Patent Applications: Simplified Intellectual Property Rights
(IPR) process for startups.

4. Plan
 Increase manufacturing sector output and job opportunities.
 Develop industrial corridors and smart cities to enhance infrastructure.
 Focus on sustainable development and reducing dependency on imports.
 Integration with global supply chains by improving logistics and
transportation.

5. Progress
 FDI Growth: India recorded its highest-ever FDI inflow of $84.8 billion
in FY 2021-22.
 Manufacturing sector growth: India became a key electronics and
mobile phone manufacturing hub.
 Ease of Doing Business: India moved up from 142nd (2014) to 63rd
(2020) in the World Bank’s Ease of Doing Business ranking.
 Growth in MSMEs (Micro, Small & Medium Enterprises) and local
manufacturing.

6. Key Sectors
 Automobiles
 Electronics & IT
 Pharmaceuticals & Biotechnology
 Textiles & Garments
 Renewable Energy
 Aerospace & Defence
 Food Processing
  Chemicals & Petrochemicals

7. Opportunities
 Growing domestic market with rising middle-class consumption.
 Global Supply Chain Shift: Many companies are shifting manufacturing
from China to India.
 Government Incentives: Attractive tax benefits and subsidies.
 Export Potential: India’s strategic location allows it to be a global export
hub.
 Technology & Innovation: Rising investment in AI, automation, and
Industry 4.0.

8. Key Reforms
 GST Implementation: Simplified taxation system.
 Labour Law Reforms: Consolidation of 29 laws into 4 labour codes for
flexibility.
 Banking & Financial Reforms: Recapitalization of banks and support for
NBFCs.
 Insolvency & Bankruptcy Code (IBC): Streamlined corporate
insolvency resolution.
 Digital India Initiative: Strengthening digital infrastructure.

9. Ease of Doing Business

 Simplified regulations and business-friendly policies.
 Reduction in corporate tax: India’s corporate tax was reduced to 22%
for existing companies and 15% for new manufacturers.
 Online Company Registration: Faster and more efficient startup
processes.
 Infrastructure & Connectivity Improvements: Expansion of roads,
ports, and railway networks.
10. Key Examples
 Apple & Samsung: Started manufacturing smartphones in India under
PLI schemes.
 Tesla: Exploring investment in India’s EV sector.
 Defence Manufacturing: HAL (Hindustan Aeronautics Limited) and
Tata Advanced Systems producing fighter jets and helicopters.
 Renewable Energy: Adani & Tata Power investing in large-scale solar
and wind energy projects.
 Automobile Sector: Companies like Maruti Suzuki, Tata Motors, and
Hyundai scaling up production.

Critical evaluation of Make in India

Here's a critical evaluation of the Make in India scheme based on official
sources:
Achievements (Official Sources)
1. Increased FDI: According to the Ministry of Commerce & Industry, FDI
inflows have significantly increased since the launch of the initiative.
2. Ease of Doing Business: The World Bank's Doing Business Report
highlighted India's improvement from 142nd in 2014 to 63rd in 2020.
3. Job Creation: The initiative aimed to create 100 million additional
manufacturing jobs by 2022.
4. Export Growth: India's merchandise exports reached $437 billion in 2024.
5. Technological Advancements: India became the second-largest mobile
phone manufacturer in the world.
Challenges (Official Sources)
1. Infrastructure Issues: Despite improvements, infrastructure and
regulatory hurdles continue to impede the full potential of the initiative.
2. Sustainability of Interest: Attracting foreign investment is one thing, but
sustaining this interest over the long term remains a challenge.
3. Skill Development: Efforts have been made to invest in skill development
programs, but there is still a need for a more skilled workforce.
 4. Sector-Specific Challenges: Certain sectors, such as defense and
pharmaceuticals, face unique challenges that require targeted policies and
support.
Conclusion (Official Sources)
The Make in India initiative has made significant strides in boosting India's
manufacturing sector and attracting foreign investment. However, sustaining this
momentum and addressing ongoing challenges will be crucial for its long-term
success.

Start Up India
The Startup India initiative, launched by the Government of India on January
16, 2016, aims to foster innovation, create jobs, and facilitate investment by
building a robust startup ecosystem.

Definition: Startup
A startup is defined as an entity that is headquartered in India, has been
incorporated less than ten years ago, and has an annual turnover not exceeding
₹100 crore. Such an entity should be working towards innovation, development,
or improvement of products or services, or it should be a scalable business model
with a high potential for employment generation or wealth creation.
Central and State Policies and Tax Incentives
Central Policies and Tax Incentives
 Self-Certification Compliance: Startups are permitted to self-certify
compliance with nine labour and environmental laws to reduce regulatory
burden.
 Tax Exemptions:
o Income Tax Exemption: Recognized startups are eligible for a tax
holiday for three consecutive financial years out of their first ten
years since incorporation.
o Exemption on Capital Gains: Investments made in startups are
exempt from capital gains tax, subject to certain conditions.
 Fund of Funds: A Fund of Funds with a corpus of ₹10,000 crore has been
established to provide funding support for startups.
State Policies
Various states have formulated their own startup policies to encourage
entrepreneurship. For instance, Uttar Pradesh has launched the StartInUP
program, aiming to establish a world-class startup ecosystem by developing
robust infrastructure and providing a conducive policy environment.
Registering a Company in India
To register a startup in India, the following steps are typically involved:
1. Incorporate the Business: Register your business as a Private Limited
Company, Partnership Firm, or Limited Liability Partnership.
2. Register with Startup India: Sign up on the Startup India portal and apply
for recognition as a startup.
3. DPIIT Recognition: Obtain recognition from the Department for
Promotion of Industry and Internal Trade (DPIIT) to avail benefits like tax
exemptions and easier compliance.
Services and Benefits
 Startup India Hub: A one-stop platform for all stakeholders in the startup
ecosystem to interact, collaborate, and access various resources.
 Legal Support and Fast-Tracking Patent Examination: Startups are
provided with legal support and can avail expedited patent examination at
reduced costs.
 Easier Public Procurement Norms: Recognized startups are exempted
from prior experience or turnover criteria in government tenders.
Startup India Action Plan
The Startup India Action Plan outlines initiatives across areas such as
simplification and handholding, funding support and incentives, and industry-
academia partnership and incubation. Key components include self-certification
compliance, tax exemptions, and the establishment of research parks and
incubators.
Incubators
Incubators play a crucial role in nurturing startups by providing mentorship,
infrastructure, and networking opportunities. The government supports the
establishment of new incubators and scaling up of existing ones, often in
collaboration with the private sector and academic institutions.
Initiatives by Banking and Financial Institutions
Financial institutions have introduced various schemes to support startups:
 Credit Guarantee Fund: A fund established to provide credit guarantees
to startups, facilitating access to loans without collateral.
 SIDBI Fund of Funds: The Small Industries Development Bank of India
(SIDBI) manages a Fund of Funds to invest in Alternative Investment
Funds, which in turn invest in startups.
MUDRA Bank Scheme
The Micro Units Development and Refinance Agency (MUDRA) Bank
provides loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises
under the Pradhan Mantri MUDRA Yojana (PMMY). The loans are
categorized into:
 Shishu: Loans up to ₹50,000.
 Kishore: Loans above ₹50,000 and up to ₹5 lakh.
 Tarun: Loans above ₹5 lakh and up to ₹10 lakh.
These loans are offered through various financial institutions, including public
and private sector banks, regional rural banks, and microfinance institutions.
Startup India Hub
The Startup India Hub serves as a single point of contact for the startup
ecosystem, enabling knowledge exchange and access to funding. It assists
startups through their lifecycle with relevant information and guidance.
Innovation and Business
To promote innovation, the government has launched several initiatives:
 Atal Innovation Mission (AIM): AIM fosters innovation and
entrepreneurship by establishing Atal Tinkering Labs in schools and Atal
Incubation Centers in higher education institutions.
 Industry-Academia Partnerships: Collaboration between industries and
academic institutions is encouraged to drive research and development,
leading to innovative solutions and startups.
Success Stories
Several startups have thrived under the Startup India initiative. For instance,
companies like Ola, Paytm, and Zomato have scaled significantly, contributing
to economic growth and job creation. These success stories exemplify the
potential of a supportive startup ecosystem.

Critical Evaluation of Start Up India Scheme

Here's a critical evaluation of the Startup India scheme based on official sources:
Achievements (Official Sources)
1. Increased Startup Recognition: The Department for Promotion of
Industry and Internal Trade (DPIIT) has recognized numerous startups,
providing them with benefits such as tax exemptions, easier compliance,
and intellectual property rights (IPR) fast-tracking.
2. Ease of Doing Business: The scheme has reduced the regulatory burden
on startups, allowing them to focus on their core business activities.
3. Funding Support: Initiatives like the Seed Fund Scheme provide financial
assistance for proof of concept, prototype development, product trials,
market entry, and commercialization.
4. Market Access: Programs like Startup India Investor Connect facilitate
connections between startups and investors.
5. Innovation and Scalability: Startups recognized under the scheme are
required to work towards the development or improvement of a product,
process, or service with a scalable business model.
Challenges (Official Sources)
1. Sustainability of Support: Ensuring continuous support and resources for
startups beyond initial recognition and funding remains a challenge.
2. Skill Development: There is a need for ongoing skill development
programs to keep pace with the evolving demands of the startup ecosystem.
3. Access to Markets: While market access initiatives exist, startups often
face challenges in scaling and reaching broader markets.
4. Regulatory Compliance: Despite efforts to ease compliance, startups still
encounter regulatory hurdles that can impede their growth.
Conclusion (Official Sources)
The Startup India scheme has made significant strides in fostering a supportive
environment for startups, providing them with recognition, funding, and market
access. However, sustaining this momentum and addressing ongoing challenges
will be crucial for its long-term success.

Stand Up India
The Stand-Up India scheme, launched by the Government of India, aims to
promote entrepreneurship among Scheduled Castes (SC), Scheduled Tribes
(ST), and women by facilitating bank loans for establishing greenfield
enterprises. This initiative seeks to empower these groups by providing financial
support and fostering an inclusive entrepreneurial ecosystem.
Scheme and Guidelines
Objectives
The primary objective of the Stand-Up India scheme is to facilitate bank loans
ranging from ₹10 lakh to ₹1 crore to at least one SC or ST borrower and at least
one woman borrower per bank branch for setting up a greenfield enterprise. These
enterprises may operate in the manufacturing, services, trading sectors, or
activities allied to agriculture. In the case of non-individual enterprises, at least
51% of the shareholding and controlling stake should be held by an SC/ST or
woman entrepreneur.
Eligibility Criteria
 Applicants: SC/ST and/or women entrepreneurs aged 18 years or above.
 Enterprise Type: Greenfield projects only, signifying the first-time
venture of the beneficiary in the manufacturing, services, trading sectors,
or activities allied to agriculture.
 Ownership: For non-individual enterprises, a minimum of 51%
shareholding and controlling stake should be held by an SC/ST and/or
woman entrepreneur.
 Credit History: Applicants should not be in default to any bank or
financial institution.
Loan Details
 Nature of Loan: Composite loan (inclusive of term loan and working
capital) between ₹10 lakh and ₹1 crore.
  Loan Coverage: Up to 85% of the project cost, inclusive of term loan and
working capital. This stipulation applies only if the borrower’s
contribution, along with convergence support from other schemes, is a
minimum of 15% of the project cost.
 Interest Rate: The rate of interest would be the lowest applicable rate of
the bank for the respective category, not exceeding the (base rate (MCLR)
+ 3% + tenor premium).
 Repayment: The loan is repayable in 7 years with a maximum moratorium
period of 18 months.
 Security: In addition to primary security, the loan may be secured by
collateral security or guarantee of the Credit Guarantee Fund Scheme for
Stand-Up India Loans (CGFSIL) as decided by the banks.
Roles of Stakeholders
Bankers
All branches of Scheduled Commercial Banks are mandated to facilitate loans
under the Stand-Up India scheme. Bankers are responsible for:
 Assistance: Guiding potential borrowers through the application process.
 Sanctioning Loans: Assessing and approving loan applications based on
eligibility and viability.
 Support: Providing necessary support and information regarding the
scheme.
Applicants
Prospective entrepreneurs eligible under the scheme are required to:
 Prepare a Business Plan: Detailing the proposed greenfield enterprise.
 Approach Bank Branches: Submit loan applications to the nearest bank
branch or apply online through the Stand-Up India portal.
 Provide Necessary Documentation: Including identity proof, address
proof, business plan, and other relevant documents.
Handholding Agencies
The scheme provides for extensive handholding support to applicants through
various agencies, including:
 Skilling Centers: Offering training and skill development programs.
  Mentorship Support: Providing guidance and mentorship to
entrepreneurs.
 Entrepreneurship Development Programs (EDPs): Assisting in
developing entrepreneurial skills.
 Financial Literacy Centers: Educating applicants on financial
management and literacy.
 District Industries Centers (DICs): Facilitating various support services
at the district level.
Applicants can access these services through the Stand-Up India portal or by
visiting the nearest bank branches.
Subsidy Schemes for SC, ST, and Women
While the Stand-Up India scheme itself does not provide subsidies, it allows for
convergence with other Central/State government subsidy schemes to meet the
margin money requirements. Applicants are encouraged to explore and avail
benefits from various subsidy schemes designed for SC, ST, and women
entrepreneurs, which can be integrated into the Stand-Up India loan structure.
Stand-Up India Ecosystem
The Stand-Up India scheme fosters an ecosystem that includes:
 Financial Institutions: Scheduled Commercial Banks providing the
necessary financial support.
 Handholding Agencies: Institutions offering training, mentorship, and
support services.
 Online Portal: The Stand-Up India portal serves as a one-stop platform
for information, application, and support services.
This integrated approach ensures that entrepreneurs receive comprehensive
support from the inception of their business idea to the establishment and
operation of their enterprise.

Related Schemes:
The Government of India has launched several flagship schemes aimed at
improving the quality of life for its citizens, particularly in rural areas. Below is
an overview of three major initiatives: Deen Dayal Upadhyaya Gram Jyoti
Yojana (DDUGJY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana
(Saubhagya), and Pradhan Mantri Ujjwala Yojana (PMUY).

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Launched in December 2014, DDUGJY focuses on providing continuous power
supply to rural India. The scheme aims to strengthen sub-transmission and
distribution infrastructure in rural areas, facilitating reliable and adequate power
supply.
Key Components:
 Feeder Separation: Segregating agricultural and non-agricultural feeders
to ensure judicious power supply to both sectors.
 Strengthening Infrastructure: Upgrading sub-transmission and
distribution networks, including metering at all levels (distribution
transformers, feeders, and consumers).
 Rural Electrification: Completing the electrification of all villages and
providing free electricity connections to Below Poverty Line (BPL)
households.
The scheme is implemented by the Rural Electrification Corporation (REC),
which serves as the nodal agency. The total outlay for DDUGJY is ₹43,033 crore,
with a budgetary support of ₹33,453 crore from the Government of India.
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya)
Initiated in September 2017, the Saubhagya scheme aims to achieve universal
household electrification by providing last-mile connectivity and electricity
connections to all remaining un-electrified households in rural and urban areas.
Salient Features:
 Free Electricity Connections: For economically disadvantaged
households, the scheme offers free metered connections.
 On-the-Spot Registration: Organizing camps in villages to facilitate
immediate registration and connection for beneficiaries.
 Use of Technology: Employing mobile applications for beneficiary
identification and real-time progress monitoring.
  Solar Photovoltaic (SPV) Systems: Providing SPV-based standalone
systems for households in remote and inaccessible areas where grid
extension is not feasible.
The total financial outlay for Saubhagya is ₹16,320 crore, with a Gross Budgetary
Support of ₹12,320 crore from the Government of India. The Rural
Electrification Corporation (REC) is the nodal agency responsible for the
scheme's implementation.
Pradhan Mantri Ujjwala Yojana (PMUY)
Launched in May 2016, PMUY aims to safeguard the health of women and
children by providing clean cooking fuel—Liquefied Petroleum Gas (LPG)—
to households below the poverty line.
Key Objectives:
 Reducing Health Hazards: Replacing traditional cooking fuels like
firewood and cow dung with LPG to prevent respiratory diseases caused
by indoor air pollution.
 Empowering Women: Alleviating the physical burden and time spent on
collecting firewood, thereby enabling women to engage in other productive
activities.
Implementation Details:
 Target Beneficiaries: Providing LPG connections to 50 million BPL
households.
 Financial Support: Offering a subsidy of ₹1,600 per connection to cover
the security deposit for the cylinder and pressure regulator.
 Identification of Beneficiaries: Utilizing the Socio-Economic Caste
Census (SECC) data to identify eligible households.
The scheme is implemented by the Ministry of Petroleum and Natural Gas
through its network of Oil Marketing Companies (OMCs).
These initiatives reflect the government's commitment to improving rural
infrastructure, ensuring energy access, and enhancing the quality of life for all
citizens.
Critical Evaluation of Stand Up India Scheme
Here's a critical evaluation of the Stand Up India scheme based on official
sources:
Achievements (Official Sources)
1. Loan Disbursement: As of April 2023, over ₹40,700 crore has been
sanctioned to more than 1,80,630 accounts under the Stand Up India
Scheme.
2. Empowerment: The scheme aims to promote entrepreneurship among
women, Scheduled Castes (SCs), and Scheduled Tribes (STs) by providing
bank loans between ₹10 lakhs and ₹1 crore for greenfield enterprises.
3. Economic Empowerment: The scheme has facilitated the dreams of
aspiring entrepreneurs, particularly women, SCs, and STs, by supporting
their energy and enthusiasm and removing hurdles from their path.
Challenges (Official Sources)
1. Implementation Issues: Despite the scheme's objectives, there have been
challenges in its implementation, including delays in loan processing and
disbursement.
2. Access to Markets: While the scheme provides financial support, startups
often face challenges in scaling and reaching broader markets.
3. Skill Development: There is a need for ongoing skill development
programs to keep pace with the evolving demands of the entrepreneurial
ecosystem.
Conclusion (Official Sources)
The Stand Up India scheme has made significant strides in promoting
entrepreneurship among women, SCs, and STs by providing financial support and
removing barriers. However, addressing implementation challenges and ensuring
continuous support will be crucial for its long-term success2