Inaugurated by IN-SPACe
ISRO Registered Space Tutor
S5-SA4-0135
What is a Make in India?
Grade Level:
Class 9
Law, Civic Literacy, Economics, FinTech, Geopolitics, Personal Finance, Indian Governance
Definition
What is it?
Make in India is a government initiative launched in 2014 to encourage both domestic and foreign companies to manufacture their products within India. Its main goal is to boost India's manufacturing sector, create jobs, and make the country a global manufacturing hub.
Simple Example
Quick Example
Imagine your favourite smartphone brand. If that company sets up a factory in India to assemble phones, hires Indian workers, and uses some parts made in India, then those phones are 'Made in India'. This helps our economy grow instead of importing fully-built phones from other countries.
Worked Example
Step-by-Step
Let's say a toy company from another country wants to sell its toys in India.
---
Step 1: Currently, they import all their toys from their home country, paying import duties and transport costs.
---
Step 2: Under 'Make in India', the Indian government offers incentives like easier land acquisition and tax benefits if they set up a toy factory in India.
---
Step 3: The company decides to build a factory in Noida, Uttar Pradesh, investing in machinery and hiring 500 Indian engineers and workers.
---
Step 4: They start producing toys, using plastic sourced from Indian suppliers for some parts.
---
Step 5: These toys are now 'Made in India'. This means more jobs for Indians, less money spent on imports, and India's manufacturing capability increases.
---
Answer: The company has successfully participated in the Make in India initiative by shifting its manufacturing base to India.
Why It Matters
Understanding Make in India helps you grasp how government policies influence our economy and daily lives, from the jobs available to the products we buy. It's crucial for future economists, entrepreneurs, and even those working in FinTech, as it impacts investment decisions and trade policies.
Common Mistakes
MISTAKE: Thinking Make in India only means products made by Indian companies. | CORRECTION: It includes products made by foreign companies too, as long as the manufacturing happens on Indian soil.
MISTAKE: Believing Make in India means completely stopping all imports. | CORRECTION: It aims to reduce reliance on imports and boost local manufacturing, not to stop all international trade.
MISTAKE: Confusing Make in India with simply selling products in India. | CORRECTION: The core idea is manufacturing in India, not just selling imported goods here.
Practice Questions
Try It Yourself
QUESTION: A German car company opens a new factory in Pune, Maharashtra, to produce cars for the Indian market. Is this an example of 'Make in India'? | ANSWER: Yes, because the manufacturing is happening within India.
QUESTION: An Indian clothing brand designs its clothes in Delhi but gets them stitched in Bangladesh due to lower labour costs. Are these clothes 'Made in India'? Explain why or why not. | ANSWER: No, these clothes are not 'Made in India'. Even though the brand is Indian and the design is from India, the actual manufacturing (stitching) is done in Bangladesh.
QUESTION: A company imports all the parts for a laptop from China and then simply assembles them in a small workshop in Bengaluru before selling them. Does this fully align with the spirit of 'Make in India'? What would be a better way for them to align? | ANSWER: It partially aligns, as assembly is happening in India. However, to fully align with the spirit of 'Make in India', the company should aim to manufacture more of the individual components (like circuit boards, casings, or batteries) within India itself, rather than just assembling imported parts.
MCQ
Quick Quiz
What is the primary goal of the Make in India initiative?
To promote tourism in India
To encourage manufacturing within India
To export only agricultural products
To stop all foreign investment
The Correct Answer Is:
B
The Make in India initiative was launched specifically to boost the manufacturing sector by encouraging companies to produce goods within the country, creating jobs and economic growth. Options A, C, and D are incorrect as they do not reflect the core objectives of the initiative.
Real World Connection
In the Real World
Many popular brands you use daily, like mobile phones from Xiaomi, Samsung, or even Apple's iPhones, are now assembled in India. This means jobs for thousands of Indians in factories in places like Sriperumbudur (Tamil Nadu) or Noida (Uttar Pradesh), contributing directly to our economy and reducing our reliance on imports.
Key Vocabulary
Key Terms
MANUFACTURING: The process of making goods or products, especially on a large scale, using machinery | INITIATIVE: An important new plan or process to achieve a particular aim or to solve a particular problem | DOMESTIC COMPANIES: Companies that operate and are based within their home country | FOREIGN INVESTMENT: Money invested in a country by people or companies from other countries | GLOBAL HUB: A central and important place where a particular activity or business is concentrated
What's Next
What to Learn Next
Next, you can explore concepts like 'GDP (Gross Domestic Product)' and 'Foreign Direct Investment (FDI)'. These topics will help you understand how initiatives like Make in India directly impact a country's economic growth and its position on the global stage!
