MAKE IN INDIA WEEK - 13th to 18th February 2016

  Dr. Ranjeet Mehta

Prime Minister Narendra Modi will inaugurate the Make in India Week in Mumbai on 13th February, 2016. It is expected that more than 1,000 companies and delegates from over 60 countries will participate in this Mega event. The theme of the event will be innovation, design and sustainability. The main aim of the event is to attract more FDI into the country as per Mr Amitabh Kant Secretary, Department of Industrial Policy and Promotion (DIPP). Since the announcement of 'Make in India', FDI in the last 17 months as compared to the previous 17 months has grown by about 35 per cent. There have been substantial investments in areas which include electronics, automotive, food processing, textiles and garments, renewable energy and construction. The "key challenge" is to make India the easiest and simplest place to do business, a goal which the Government is determined to achieve. There is a need to push for greater momentum to domestic companies in India.

'Make in India' campaign was aimed at changing the mindset of the people to tap their entrepreneurial potential. Prime Minister Narendra Modi launched the “Make In India” campaign on September 25, 2014 aimed at reviving the job creating manufacturing sector the key to taking the economy on a sustainable high growth path. With his “Come, make in India” slogan in his Independence Day speech, Mr. Modi had invited global companies to set up manufacturing units in India to supply to the rest of the world. The objective set out for Make in India is to take manufacturing growth on a sustainable basis to 10 per cent over the long term. The Department of Industrial Policy and Promotion has set up an eight-member expert panel to redress grievances and handle queries of global and domestic investors within 24 hours. Make in India' is proceeding in mission mode as India clearly appears to be the land of opportunities. Modi Government’s strategy to improve India's position in the Ease of Doing Business rankings, policy decisions and their effective implementation are now showing results. The government has said that it has, so far, received Rs 1.10 lakh crore worth of proposals from various companies that are interested in manufacturing electronics in India. Companies like Xiaomi, Huawei have already set up manufacturing units in India, while iPhone, iPad manufacturer Foxconn is expected to open a manufacturing unit soon. Recently, Lenovo also announced that it has started manufacturing Motorola smartphones in a plant near Chennai. In a report released by the World Bank, about a state-wise bifurcation based on ease of doing business, Gujarat was ranked as the top state, followed by Andhra Pradesh and Jharkhand. It is expected that Make in India week will Showcase the potential of design, innovation and sustainability across India's manufacturing sectors in the coming decade. A week that will spark a renewed sense of pride in India's manufacturing – and take corporate and public participation to the next level. There is a need to move forward, taking advantage of the strength of human resources as the world over, startups are changing the economic landscapes in the countries they work in - creating immense employment and generating cascading entrepreneurship. India has a rich tradition of entrepreneurship and contemporary startups are nothing but a modern day version of this rich legacy. Yet, the global flow of funds, quick evolution of technology and fast pace of innovation makes this as a very competitive field. Given these internal dynamics, startups have very limited time and resources to navigate a complex regulatory environment. India, despite its continuing reforms over the last two decades, has a lot of catching up to do vis-a-vis other countries.

Hence, a startup policy that recognises the needs of the startup sector and helps them with simple, minimal and supportive regulation, all packaged in one policy is a great move. Over the last one year, the government has undertaken various initiatives in furtherance of its aim to liberalise the business regime in India. It is important to hand hold the startups for success of Make in India. Once the startups has an idea he requires funding in order to incubate the idea, he wishes he could easily get loans and find investors. Next he needs a working space and good internet connectivity (assuming these to be the bare minimum necessities), if he is into manufacturing he will need land to set up the industry. He wishes that he gets tax exemptions, easy access to resources and good infrastructure. After that he needs to get clearances from the government and even obtain licences in some cases. This is the most dreaded part in the process of starting up. He longs for a hassle free and quick procedure. Once he is done with setting up his business and has a strong foothold in the market, he looks to innovate and expand. He wishes to partner with some other firms. There are 4 major policy initiatives under the 'Make in India':

1. New Initiatives: This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency. Here's what the government has already rolled out a) Environment clearances can be sought online (b) All income tax returns can be filed online (c) Validity of industrial license is extended to three years (d) Paper registers are replaced by electronic registers by businessmen (e) Approval of the head of the department is necessary to undertake an inspection.

2. Foreign Direct Investment (FDI): The government has allowed 100 per cent FDI in all the sectors except Space (74 per cent), Defence (49 per cent) and News Media (26 per cent).FDI restrictions in tea plantation has been removed, while the FDI limit in defence sector has been raised from the earlier 26 per cent to 49 per cent currently.

3. Intellectual Property Rights: The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology. The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual property regime in the country.

The following are the various types of IPR:

*Patent: A patent is granted to a new product in the industry.

*Design: It refers to the shape, configuration, pattern, colour of the article.

*Trade mark: A design, label, heading, sign, word, letter, number, emblem, picture, which is a representation of the goods or service.

*Geographical Indications: it is the indication that identifies the region or the country where the goods are manufactured.

*Copyright: A right given to creators of literary, dramatic, musical and artistic works.

*Plant variety Protection: Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.

*Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor.

4. National manufacturing: The vision includes

(a) to increase manufacturing sector growth to 12-14 per cent per annum over the medium term

(b) to increase the share of manufacturing in the country’s Gross Domestic Product from 16 per cent to 25 per cent by 2022

(c) to create 100 million additional jobs by 2022 in manufacturing sector (d) to create appropriate skill sets among rural migrants and the urban poor for inclusive growth

(e) to increase the domestic value addition and technological depth in manufacturing

(f) to enhance the global competitiveness of the Indian manufacturing sector

(g) to ensure sustainability of growth, particularly with regard to environment. The Make in India policy clearly meets most of the aspirations of a young entrepreneur. The new de-licensing and deregulation measures will surely reduce complexity and significantly increase speed and transparency. The digitalisation of the procedures will make everything hassle free. Development of smart cities and industrial corridors will ensure that ideas get transformed into products. Skill development program will provide the necessary workforce to the entrepreneur. Apart from this the government has also designed policies and goals for specific industries. Area based incentives (SEZs), state based incentives, export incentives (under foreign trade policy) and relaxation on FDI caps are the highlights of the program. The roadmap for each sector has been laid separately as well. Make in India will affect the young entrepreneurs in a very positive way. If this program delivers then it will bring an attitudinal change. It will change the perception of the world towards India and at the same time encourage and empower entrepreneurs to Make in India.

(Author is Director, PHD Chamber of Commerce and Industry New Delhi. email: ranjeetmehta@gmail.com)