 "Photo: Suryakant Niwate")
The government’s ‘Make in India’ programme has driven a lot a project announcements and investment commitments since September 25, 2014, when Prime Minister Narendra Modi unveiled it to revive the country’s ailing manufacturing sector.
Under the programme, the government has laid a special emphasis on encouraging major national and international corporations to manufacture their products in India. This is also aimed at job creation and skill enhancement in 25 key sectors, with an eye on propelling the domestic economy.
Under the programme, the government has laid a special emphasis on encouraging major national and international corporations to manufacture their products in India. This is also aimed at job creation and skill enhancement in 25 key sectors, with an eye on propelling the domestic economy.
The sectors that are part of the ‘Make in India’ initiative are:
1. Automobiles
2. Automobile components
3. Aviation
4. Biotechnology
5. Chemicals
6. Construction
7. Defence manufacturing
8. Electrical Machinery
9. Electronic systems
10. Food Processing
11. Information technology and business process management
12. Leather
13. Media & Entertainment
14. Mining
15. Oil & Gas
16. Pharmaceuticals
17. Ports & Shipping
18. Railways
19. Renewable Energy
20. Roads & Highways
21. Space
22. Textiles & Garments
23. Thermal Power
24. Tourism & Hospitality
25. Wellness
Ever since the initiative was unveiled, a plethora of deals and announcements have been made to strengthen the manufacturing base in the country. Here are some of the major deals and announcements that were made in key sectors:
Telecom
Spice Group: In January 2015, Spice announces a Rs 500-crore investment in setting up a manufacturing unit in Uttar Pradesh. The company also signs a Memorandum of Understanding (MoU) with the state government for setting up the factory.
Dilip Modi, chairman of Spice Group, said: “We are delighted to announce our investment plans to set up a mobile manufacturing unit in Uttar Pradesh with the support of the state government. With a local manufacturing plant, Spice Group can achieve its vision to create affordable and high-technology mobile products for a larger audience. Uttar Pradesh has had a strong connection with our group, ever since we set up the country’s first photocopier manufacturing plant in the state.”
Huawei: In February 2015, Chinese handset major Huawei launched a 5,000-seater research & development (R&D) centre in Bengaluru, the company’s largest such facility outside China and the first R&D centre set up by a Chinese company in India. The investment in setting up the centre was more than $170 million (around Rs 1,050 crore. With the planned expansion of this facility, the company might look at bringing more work here, Wilson Wang, chief operating officer of Huawei India R&D center said.
Samsung: In May 2015, Samsung India signed an agreement with the micro, small and medium enterprises ministry to open MSME-Samsung Digital Academy. Under this, the company will offer the digital academy courses in collaboration with the ministry and train young minds on developing apps that run on the Tizen OS across a multitude of devices like smart phones, televisions and tablets.
Xiaomi-Foxconn: In August 2015, the first India-made smartphone of Xiaomi, the world’s third-largest handset manufacturer, was rolled out from an assembly line of Foxconn’s manufacturing unit at Sri City, on the Andhra Pradesh-Tamil Nadu border. It was earlier in 2015 that Andhra Pradesh Chief Minister N Chandrababu Naidu had held talks with senior executives of Taiwanese manufacturer Foxconn (Hon Hai Precision Industry Co) and China’s Xiaomi during his visit to China, inviting them to set up a base in his state.
Foxconn: In August 2015, Foxconn, the world’s largest contract-manufacturing firm for consumer electronics, signed an MoU with the Maharashtra government to invest $5 billion over three years in setting up a manufacturing unit in the state.
Lenovo: In August 2015, Chinese personal computer and smartphone maker Lenovo said it would start local manufacturing of Lenovo and Motorola smartphones in Sriperumbudur, near Chennai. The company had roped in Flextronics, a large electronics contract manufacturer and a competitor of Foxconn’s, to manufacture the phones at its unit.
Optiemus-Wistron: In November 2015, India-based Optiemus Infracom, a $650-million telecom equipment maker, tied up with Taiwan’s Wistron Corporation to set up a facility in India to make smartphones. Over the next five years, the two are expected to invest $200 million in the manufacturing facility in Noida. Optiemus manufactures handsets for HTC.
Automobile
General Motors: In July 2015, General Motors, the world’s third-largest automobile maker signed a letter of offer with the Maharashtra government to invest Rs 6,400 crore at its existing Talegaon facility in Pune for further expansion, to export its various models. The letter of offer was submitted by GM chief executive Mary Barra to Chief Minister Devendra Fadnavis, who was accompanied by the state industries minister Subhash Desai.
Railways
General Electric and Alstom Transport: In December 2015, Indian Railways signed two joint venture agreements with global transport majors General Electric and Alstom Transport for setting up two locomotive factories in Bihar with an investment of Rs 40,000 crore.
Aviation/Defence
Wayne Burt-GE Aviation: In March 2015, Wayne Burt Group entered into several MOUs with GE Aviation through its group company Kerns Aero Products. The company manufactures high precision, complex, special process aircraft engine components for aircraft and rocket engines. The special process factory is located in the industrial hub of Sriperumbudur, near Chennai in collaboration with GE Aviation. The investment in this venture is $25 million and expected to have revenues of $50 million in the next three years.
LH Aviation-OIS: In June 2015, France-based LH Aviation signed an MoU with OIS Advanced Technologies to set up a manufacturing plant in India to manufacture drones.
HAL-Irkut Corp: In August 2015, Hindustan Aeronautics Ltd (HAL) began talks with Russia’s Irkut Corp to transfer technology of 332 components of the Sukhoi Su-30MKI fighter aircraft under the Make in India programme. These components, also called line replacement units (LRUs), refer to both critical and non-critical components and fall into four major heads of Radio & Radar, Electrical & Electronics System, Mechanical System, and Instrument System.
Boeing: In October 2015, US aviation manufacturer Boeing decided to assemble one of its two helicopters — Chinook heavy-lift and Apache attack types — in India. The announcement came after US and Indian officials in September signed two contracts for the purchase by the Indian Air Force (IAF) of 22 AH-64E Apache attack helicopters, and 15 CH-47F Chinook multi-mission heavy lift helicopters.
Tata Motors: The defence ministry is auctioning a Rs 60,000 crore ($8.8 billion) contract to design and build a Fighting Infantry Combat Vehicle (FICV) in India. The contract will be awarded in 2016. Tata Motors, one of the country’s largest auto maker, is in the running to bag the contract.
Reliance Defence-Almaz-Antey: In December 2015, Reliance Defence said it had signed a manufacturing and maintenance deal, potentially worth $6 billion, with Russia’s Almaz-Antey, the maker of an air defence system that sources said the military was poised to buy. The partnership between the Anil Ambani-controlled firm and the Russian company was announced as Prime Minister Narendra Modi began a trip to Moscow for strengthening defence ties.
Rostech-HAL: In December 2015, Russia’s Rostech State Corporation tied up with Hindustan Aeronautics Ltd for manufacture of at least 200 Kamov 226T light helicopters to replace the ageing fleet of Cheetah and Chetak, in a deal estimated to be worth $1 billion under the ‘Make in India’ initiative. This came after a defence deal was signed during Modi’s visit to Russia in December 2015 which will see the Kamov Ka-226 multi-role helicopter being built in India.
