The Make in India initiative has given a new lease of life to India's manufacturing sector. It is true that even 10 years ago, the share of manufacturing in GDP was 17 percent and even today the contribution of manufacturing in GDP is 17 percent, but on this basis it would not be right to conclude that Make in India has not promoted manufacturing.

You have to look at the data before 2014 to get the real picture. Between 2002 and 2014, the manufacturing figures were falling. More and more goods were being imported from outside instead of being made in India. The things coming from abroad were so cheap that it was not economically viable to manufacture them here.

Indian entrepreneurs had set up factories abroad

This was the period when many businessmen shut down their manufacturing units in India and set up manufacturing units in other countries. Even many entrepreneurs from India shut down their units in India and set them up in Bangladesh and Bangladesh left India behind in the export of clothes. At that time, India's trade agreement with other countries was one-sided. Like with Thailand and ASEAN.

Only other countries were benefiting from this agreement and the trade balance was against India. Due to this, manufacturing was ending in India. To change this situation, Make in India was launched in 2014. If Make in India had not been there, the manufacturing figure would have fallen to 10-12 percent.

How did Make in India benefit?

There is another way to look at how the manufacturing sector has benefited from Make in India. In 2014, the share of manufacturing in India's GDP was 17 percent. At that time the size of our GDP was 2 trillion dollars. 17 percent of this is 35 billion dollars.

Today the size of our GDP is 3.2 trillion dollars. 17 percent of this is about 50 billion dollars. In such a situation, Make in India has not only stopped the decline of India's manufacturing sector, but has also expanded the manufacturing base.

You can assess the success of Make in India in such a way that 10 years ago no one could have imagined that iPhones could be made in India. It was difficult for a big company like Apple to even think of making iPhones in India. This idea has come only because of Make in India.

After Make in India, the Product Linked Incentive (PLI) scheme has been started. In this, incentives are being given according to the product. For example, if the industry needs to give concessions on any product, then concessions are being given.

Similarly, if someone needs help in the capital required to set up a factory, the government is helping in this too. Like it has done for semiconductors, electronics, medical devices and textiles. In this, the government is saying that if you are setting up a factory, investing, then you should make the product and export it. We will give subsidy on the cost you incur on export. This is a big incentive to increase exports.

Certainly, the manufacturing sector faces many challenges. Today, the biggest challenge is that of labour reforms. If someone sets up a manufacturing plant and after six months there is a strike, then his capital will get stuck. The biggest fear in India is about labour laws. Once you have hired someone, the process of removing him is very complicated.

Today, there is no problem of capital in India, there are buyers as well but working with labour is a big problem. The second challenge is the availability of land. Especially suitable land. Where trucks are available to transport the product. The airport should be nearby and there should be railway connectivity as well. There are also logistics challenges in India.