Question.
What are the objectives of the National Manufacturing Policy? Critically examine the “Make in India” and “Start-Up India”.
( UPPSC, UP PCS Mains General Studies-III/GS-3 2020)
Answer.
National manufacturing policy aims to enhance the competitiveness of the manufacturing sector, promoting growth, generating employment opportunities, increasing exports, and contributing to overall economic development.
The following are the major objectives of the National Manufacturing Policy-
Increasing the share of manufacturing in GDP; The policy aims to increase the contribution of the manufacturing sector to 25 % by 2022 the country’s gross domestic products.
Job creation; The policy aims to create 100 million job additional jobs by 2022.
Enhancing global competitiveness; The policy aims to improve the competitiveness of Indian manufacturing by providing a healthy business environment, promoting technology upgradation, and fostering innovation through research and development.
Encouraging sustainable development; The policy emphasizes sustainable manufacturing practices, for that it promotes the consumption of resources ( energy) in an efficient way, reduces environmental degradation, etc.
Various government schemes have been launched to implement the national manufacturing policy, some policies include Make in India, Startup India, Stand UP India, Digital India Program, Skill India Program, and PM Gati Shakti National Master Plan.
About Make in India;
Make in India was launched by the Union government of India in 2014 to promote manufacturing in India and attract foreign direct investment ( FDI). It aims to boost job creation, enhance manufacturing capacities, and increase the share of the manufacturing sector in GDP. There are significant positive outcomes in the sector of ease of doing business, bringing FDI, and increasing manufacturing capacity. For example, Foreign direct investment in India is now rising steadily, in 2022 India received the highest-ever FDI.
However, there are significant challenges to make in the India program, some of which are mentioned below;
Limited Job creations- The initiative has not been able to generate a substantial number of jobs as expected. Structural issues including skill gaps and a lack of labor-intensive industries, have hampered its impact on employment generations.
Growth concentration in Specific sectors- Make in India has primarily focused on sectors like automobile, electronics, and defense; neglecting other sectors had hampered the other sector growth.
About Start-Up India;
The Start-Up India program was launched by the Union Government of India in 2016. It aims to foster entrepreneurship and promote the growth of startups in India. It focuses on creating a supportive ecosystem for startups through various measures like access to funding, simplification of regulations, and providing mentorship.
However, there are some challenges faced by start-ups, some are listed below;
Financial access; Start-Up India is not able to provide affordable capital to many of the startups.
Regulatory compliances; Startups still face regulatory complexities and compliance requirements, which can be burdensome, especially for small businesses.
Skill Development; Development of a skilled workforce is essential for the growth of startups. Bridging the industry-academia skill gap would help the building inclusive entrepreneurship.
In conclusion, Make in India and Start-Up India are two effective steps taken for the promotion of manufacturing sectors in India. However, the success of the scheme depends on the continued efforts to improve the ease of doing business, access to finance, skill development, and inclusive growth. By taking such measures, we can ensure the increase of the manufacturing sector's share in GDP, employment generation, and entrepreneurship in India.
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