Q.15. What are objectives of National Manufacturing Policy? Critically examine the ‘Make in India’ and ‘Start up India’.

The National Manufacturing Policy (NMP) of India has several objectives aimed at revitalizing the manufacturing sector:

1. Increase Manufacturing Growth: To increase the growth rate of the manufacturing sector to 12-14% over the medium term.
2. Job Creation: To create 100 million additional jobs in the manufacturing sector by 2022.
3. Skill Development: To develop appropriate skill sets among the rural migrant and urban poor for inclusive growth.
4. Technological Depth: To increase domestic value addition and technological depth in manufacturing.
5. Global Competitiveness: To enhance the global competitiveness of Indian manufacturing through policy support.
6. Sustainable Growth: To ensure the sustainability of growth, particularly with regard to the environment.

‘Make in India’ Initiative: 

Launched in 2014, the ‘Make in India’ initiative aimed to transform India into a global manufacturing hub. A 10-year analysis shows:

• Growth of Homegrown Brands: The initiative has supported the growth of Indian brands across various sectors.
• Increase in Exports: There has been a major growth in India’s exports of goods and services.
• Ease of Doing Business: The campaign has contributed to an improved ease of doing business index.
• Employment Boost: It has helped in boosting employment in the country.

However, critics argue that while ‘Make in India’ has had successes, it also faces challenges such as:

• Over-Reliance on FDI: Some argue that the initiative overly relies on foreign direct investment at the expense of domestic investment.
• Manufacturing vs. Services: There is a debate on whether India should focus on manufacturing when it has a comparative advantage in services.
• Implementation Hurdles: Issues with land acquisition, labor laws, and bureaucratic red tape have been cited as obstacles.

‘Start up India’ Initiative: 

‘Start up India’ was launched in 2016 to foster innovation and create a conducive environment for startups in India. Key features include:

• Funding Support: A ₹10,000 crore startup funding pool was established.
• Tax Exemptions: Startups were given various tax exemptions to encourage growth.

Critics of ‘Start up India’ point out:

• Access to Capital: Despite the funding pool, many startups struggle to access capital.
• Regulatory Challenges: Startups often face regulatory challenges that can impede their growth.
• Scale and Sustainability: Many startups fail to scale up and sustain their businesses in the long term.

Both ‘Make in India’ and ‘Start up India’ are ambitious programs with the potential to significantly impact India’s economy. While they have made progress, ongoing efforts are needed to address the challenges and ensure that the initiatives lead to sustainable and inclusive growth.