‘Create in India’ Energizing a Strong Tech Environment

Opinion
The Reader Wall Google News

Progressing Manufacturing Industry Through ‘Make in India’

In the prevalent business world, the ‘Make in India’ initiative has been fundamental in extending the manufacturing capacity of India, enticing substantial investments in diverse industries. ‘Make in India’ has been an instrumental endeavor to draw foreign companies’ attention towards the potential business opportunities in India. News comes from the source of Reader Wall.

‘Make in India’ Impacts on India’s Economy

The government of India has adopted several methodologies to simplify complex regulatory procedures and minimize bureaucratic hurdles, to offer ease of doing business to foreign organizations. This facilitative approach has led to diversified FDI inflows into the country, helping position India as a global manufacturing hub.

The Commerce Ministry’s data displays an impressive surge in the manufacturing sectors’ foreign direct investment (FDI) equity inflow. The figures show a 76% rise from $12.09 billion in FY2020-21 to $21.34 billion in FY 2021-22.

Deep Impact on Indian Economy

In the face of a global pandemic, FDI played a leading role in India’s growth story. In addition to direct financial investment, it resulted in the creation of new jobs, enhancement of infrastructure, and increased industry competitiveness, demonstrating India as an attractive option for foreign investors.

Answering the Growth Story

However, it’s essential to consider other factors such as the knowledge economy and technological advancements in addition to relying on FDI. A strong foundation in research and development (R&D) and the high-end technology sector can act as a catalyst in realizing the Prime Minister’s vision for 2047.

Greater Understanding of Intellectual Property

With the transformation in business and manufacturing landscapes, a surge has been observed in the understanding of intellectual property protection, especially patents. An increased number of organizations are taking the imperative step of securing their inventions with patents.

Transfer of Technology: A Positive Outlook

Foreign businesses frequently transfer their innovative technology and intellectual property to their Indian partners or subsidiaries. This trend is bound to increase the patent filings in India. From 2014-15 to 2020-21, India will witness an average annual growth rate of 1.08% in non-resident patent filings.

Leading Companies in Patent Filings

Some of the leading companies contributing significantly to India’s high patent filing rates include Samsung Electronics, Qualcomm, Huawei Technologies, Oppo, Microsoft, Koninklijke Philips, and Honda Motor. Their patent filings strengthen India’s innovation and technological advancement ecosystem.

Concerted Approach Towards Research and Development

Aligned with the ‘Make in India’ initiative’s focus on enhancing domestic productions, multinational corporations have noted a 7% average growth rate in R&D from 2015 to 2020. This steady commitment to conducting R&D activities within India showcases robust growth of the country’s innovation ecosystem.

Conclusion

To accomplish a resilient and sustainable industrial environment, it is essential to monitor three key indicators- FDI inflow into the green sector, Indian firms’ R&D expenditure across industries, and the global presence of Indian products. As India enters the new decade, it has already made significant strides like overcoming the pandemic and improving its global innovation ranking to 40th in 2022.

This news piece has been contributed by Madan Dhanora, assistant professor at The Institute for Excellence in Higher Education, Bhopal, Mohd Shadab Danish, Assistant Professor in Economics and Public Policy at IIM Raipur, and Niranjan Shastri, Associate Professor – Finance at School of Business Management, NMIMS Deemed-to-be-University, Indore, India.

John Kerry

John Kerry, a distinguished author in the realm of science, explores the intricate intersections of environmental policy and scientific advancements. With an insightful pen, he navigates complex issues, offering readers a profound understanding of the crucial role science plays in shaping sustainable futures. Dive into Kerry's work on ReaderWall to embark on a journey through the nexus of science and policy.