Prime Minister Narendra Modi’s programme to make India a major global manufacturing hub is likely to start showing results when the $68-billion of investments committed on the ground start coming on stream over the next couple of years.

Critics complain that the glass is half empty. The Prime Minister’s Make in India initiative has not led to any increase in the share of manufacturing in the country’s GDP and has not generated the huge number of jobs it was expected to.


But that, pardon the pun, is only half the picture. Experts point out that the manufacturing sector begins to contribute to the economy only with a lag of three-four years and point to the pipeline of about $68 billion of foreign investment, much of it in the manufacturing sector, to argue that a better way of describing the glass would be as half full.

The Strategic Partnership Policy (SPP) could throw open deals worth over $20bn to six selected private sector companies in India.

India’s defence forces will get their first fighter jets, submarines, helicopters and armoured vehicles made in India by the private sector within a few years. And it is entirely probable that friendly foreign countries could also be using some of these Made in India weapon systems.

Make in India, one of the flagship initiatives launched under Prime Minister Modi, has led to a step change in FDI inflows, writes an investment facilitator.

The total FDI inflows into India stood at $60.1 billion in 2016-17 — the highest ever in a single year. Compared to 2013-14, this represents a 75 per cent increase. India’s achievement is even more stark when compared to falling global FDI flows as highlighted by UNCTAD. More importantly, Make in India has enabled long-term structural changes such as opening new sectors for FDI, increasing the ease of doing business, cutting the red tape and improving the physical infrastructure.

India’s power minister, Piyush Goyal, was on a European investment scouting mission recently and opened up a series of avenues for FDI into the power sector in Vienna and London.

India’s Minister for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal, was on a European tour in early May to lure Austria and the UK to look at investing more in India.



At the Vienna Energy Forum, the discussion revolved around the world’s largest energy transformation programme which is currently being pioneered by India. Goyal asserted that no country can offer the kind of scale and speed that India has in terms of financing and technical capabilities. Goyal also urged the global community to link low-cost technology, renewable energy and sustainable lifestyles.

The Government of India recently unveiled its vision for India’s steel manufacturing capabilities by circulating a new draft steel policy for 2017 for public discussion and approval by the Cabinet, writes India Inc. policy expert.

India’s new draft ‘National Steel Policy of 2017’ is an outline for attaining a most ambitious target capacity of 300 million tonnes of crude steel capacity by 2030, which is anticipated as the demand for steel by then. India is producing only around a 100 million tonnes today while China, if we must compare, produces around 750/800 million tonnes a year – about 50 per cent of global capacity.

The Indian defence-aerospace industry is taking baby steps in the world of aircraft, missile and radar development. There will be massive opportunities over the next decade for Tier 2, Tier 3 and Tier 4 firms in the West to form lucrative long-term JVs with Indian partners.

India is negotiating the sale indigenously designed Akash surface to air missiles to Vietnam. Almost simultaneously, the Government of India has also cleared a Rs 17,000-crore (($2.6 billion) agreement o jointly develop a medium range surface to air missile for the army in order to beef up its defence preparedness.

It is dubbed Asia’s largest air show and the 2017 edition of Aero India in Bengaluru recently proved the ideal showcase for the Indian government’s plans to transform India into a global manufacturing hub.

The highlight of this year’s Aero India was a dual role combat-capable Advanced Hawk jet trainer, developed jointly by the UK’s BAE Systems and India’s public-sector Hindustan Aeronautics Limited (HAL) being formally unveiled.

As India edges towards its ambitious renewable energy target, the next challenge will be effective energy storage solutions that can be made in the country.

India has embarked on an ambitious programme of accelerating renewable energy deployment in the country. The target for renewable energy has been expanded multi-fold to 175 GW by 2022. A major part of the target is going to be from solar PV (100 GW) and wind energy (60 GW) and the rest from small hydro and biomass plants (5 and 10 GW respectively).

India crossed the $300 billion mark at a time when the global economic slowdown has had a dampening impact. This speaks volumes of the opportunity India as an investment destination has to offer and how timely market reforms are creating a positive ecosystem for the international investor.

The government of India has taken up a series of measures to improve Ease of Doing Business in the country. The emphasis has been on simplification and rationalisation of the existing rules and introduction of information technology to make governance more efficient and effective. Today the international investor is all ears to the India story as never before. Almost every decision-making meeting globally has India on its agenda.