Make in India: Boost to Manufacturing Can Create Jobs
Monday, August 29, 2016 6:24:03 PM

The Prime Minister of India, Narendra Modi, launched the ‘Make in India’ campaign in September 25, 2014, a major national initiative which intends to make India a global manufacturing hub. Modi invited the world to ‘Make in India’ or manufacture in India and pointed out that growth of the manufacturing sector would give an impetus to generation of employment or “create jobs” which is very much needed for the Indian economy.

The main objectives of the “Make in India” initiative are to:

  • Make India a manufacturing hub
  • Facilitate investment
  • Foster innovation
  • Enhance skill development and
  • Protect intellectual property

The key thrusts would be given in reducing delays in clearance of manufacturing projects, developing adequate infrastructure to aid manufacturing, and increasing the “Ease of Doing Business” in India, a ranking used by The World Bank to measure the ease of doing business in different countries across the world in which India ranks only 130 out of 189 economies in the year 2016 so far.

The program is a call to attract foreign investment in 25 key industries as listed below:


IT and BPM


Auto Components

Media and Entertainment

Textile Garments



Thermal Power


Oil and Gas

Tourism and Hospitality



Wellness Sectors



Roads and Highways

Defence Manufacturing


Food Processing

Electrical Machinery

Renewable Energy


Electronic Systems





According to Modi, the initiative would generate employment opportunity for youngsters and those in the working age group (almost 63% of the population) and would give more purchasing power to the people including the poor; the poor would transition from poverty to middle class; giving investing countries a huge market for their product too.


How will it be achieved?


Delays in regulatory procedures can hike the cost of production. Sooner these interruptions are addressed, the faster will foreign industries set up shop in this country.

Thrust will be given on skill development and education by assessing skilled manpower demand in specific sectors and measuring the skill gaps. Impetus and focus will be given on training manpower for these skills.

How will it create jobs? 


  1. Manufacturing to create additional jobs and for the uneducated too: Large factories can absorb the hordes of manpower, at every class of workforce, and can create jobs for every education level. India also has a large pool of educated unemployed, which include an enormous number of electrical, mechanical, and industrial engineers. Industry professionals are expecting a robust rise in jobs in the high-tech manufacturing space and this would enable those who are desirous of working in that sector.


  1. Manufacturing to push other sectors: Investment in the manufacturing sector creates diverse jobs and supplements the growth of related service sectors. The spike in infrastructure and energy sector will open up jobs in the related service sectors.


  1. Increase in investment to drive growth: The initiatives under this program has created positive investor sentiment and there was 48% rise in FDI equity flows from October 2014 - April 2015. Investment in the targeted areas as mentioned earlier will give a push to the employment potential that lies in these areas.


  1. Labor law reforms to additionally boost job growth: Reforms in certain labor laws will ease labor hiring regulations and will create more employment opportunities.


  1. Potential of domestic companies to grow into global brands: The initiation of new policies to push up India’s “ease of doing business” ranking is aimed at improving the atmosphere for doing business by:


  • Removing unnecessary regulatory procedures and speeding up the clearance processes
  • Removing constraints in terms of land acquisition for industrial purposes
  • Providing tax concessions to any industry desiring to set up manufacturing facilities in the country
  • Setting up Special Economic Zones to invite more investment


These steps will project India as a manufacturing hub and create human capital requirement and job opportunities.