This might be the first time in the history of the Indian business circuit, that all the big names from the business fraternity came together for a cause, a cause that can change the shape of the future for India. The message is loud and clear, 'Make In India', and is conceived and formulated by none other than Narendra Modi, the Prime Minister of India and his think tanks. The 'Make In India' concept is simple, ease out the business initiation process in India.
'Goodbye red tape, Hello red carpet' is the motto of the Make In India and clearly showcase the government's intention to welcome the new businesses, expand the current ones and to motivate people for producing in India. World's 4th largest economy, India, sadly, has only a limited number of local automobile manufacturing companies and the rest majority of the brands are from outside. Mr. Modi asked 25 manufacturing sectors from India to join the hand and take the initiative to produce everything, in-house.
The project was unveiled yesterday and the first look revealed for the project consists of a Lion made up of various machinery parts. The who’s who of India Inc graced their presence, including, Mr. Mukesh Ambani, Cyrus Mistry, Azim Premji and Yogi Deveshwar, among others. An easy-to-navigate, visually appealing website is offered to potential investors, to have a quick look into the 25 sectors where India wants to push labor-intensive manufacturing.
Narendra Modi and team at Make In India launch
How will it affect our automotive sector? Ratan Tata, Chairman Emeritus of Tata Sons has recently said in a statement "India deserves a much larger car market and the country's automobile manufacturers must introspect why so few cars are sold here compared to China". Further adding he said "Indian car market doesn't deserve to be 3 million. We need to ask ourselves, have we made cars too expensive for consumers to own. Have we focused on a low-scale, high-margin business."
Ratan Tata was clear in his words, we need more ease in manufacturing segment, and this is what Mr. Modi is proposing. Many de-licensing and deregulation measures were unveiled during the programme including; making the process of applying for licenses online with single-window clearances, extending the validity period of licenses to three years, deregulating dual use items (items with both civilian and military use), and self-certifications for most non-risk, non-hazardous businesses.
Kenichi Ayukawa, MD and CEO, Maruti Suzuki India, said "India is not the easiest country to do business due to several regulations, and complicated laws. However, under the leadership of Narendra Modi, India has the potential of becoming one of the most competitive nations in the world."
"Make in India programme brings together government and industry together to outline this future," Said Cyrus Mistry, Chairman, Tata Group, while addressing the corporate leaders at the Make in India campaign. He added that "Human capital and a high sustainable consumption growth rate are India's biggest strengths, which need to be coupled with efficient logistics and improved labor laws if India needs to become a manufacturing hub".
Our hope is that this project will bring boom to the flat rate going automobile market and will see more and more Indian grown companies come up and make a name for them. Mr. Modi said that FDI from now on means, 'First Develop India'. He has the same goal in mind, like many industrialists, to reduce the cost of products, generate employment and be a world leader by producing indigenous products. This news will surely bring a ray of hope for the companies who want to come up and start business in India, but are not able to, due to all regulations.