Make in India:Growth and Future Scenario of Foreign Direct Investment

FDI is the key instrument for a country to achieve a sustainable high economic growth. India has marked its presence as one of the fastest growing economies of the world. India is ranked among the top 3 attractive destination for inbound investment. The obstacles have been removed, now there is peace and security and the chances for FDI are maximum but the conditions are not sufficient. It needed an attractive investment climate, good governance and rule of law. FDI made its entry in India in the year 1991 with the aim to bring together the intended investment, actual savings and meet the balance of payment deficit of the country. Make in India an encouraging initiative has been taken by the government of India to increase FDI in the country. The aim of the initiative is to build physical infrastructure and to create a digital network for making a tremendous impact on the investment climate of the country.


INTRODUCTION
Foreign Direct Investment means an investment made by a company based in one country, into another country company or entity. FDI play a very great degree of influence and control over the host country. Free economy with highly skilled human resource @ IJTSRD | Available Online @ www.ijtsrd.com | Volume -1 | Issue -5 | July-Aug 2017 Dr. Suresh Sachdeva Professor Jiwaji Unversity Gwalior, M.P, India FDI is the key instrument for a country to achieve a economic growth. India has marked its presence as one of the fastest growing economies of the world. India is ranked among the top 3 attractive destination for inbound investment. The been removed, now there is peace and nces for FDI are maximum but the conditions are not sufficient. It needed an attractive investment climate, good governance and rule of law. FDI made its entry in India in the year 1991-1992 with the aim to bring together the intended vings and meet the balance of payment deficit of the country. Make in India an encouraging initiative has been taken by the government of India to increase FDI in the country. The aim of the initiative is to build physical igital network for making a tremendous impact on the investment Liberalization, Make in India, Manufacturing sector, Economic development, Indian an investment made by a company based in one country, into another country company or entity. FDI play a very great degree of influence and control over the host country. Free economy with highly skilled human resource available and good growth prospect quality amount of investment than closed, highly regulated economies. In India foreign direct investment was introduced in 1991 by finance minister Manmohan Singh through (LPG). Starting from base line of less than 1 billion US $ in 199 gains 9 th position in 2014 and become world's top destination in 2016. The purpose of the new scheme "Make in India" is to encourage well as national companies to manufacture their products in India. The campaign was launched by Prime Minister Narendra Modi 2014. After initiation of the programme emerged in 2015 as the top destination globally for foreign direct investment States of America as well as the China. In 2015, India received US$63 billion in FDI But the target should be much more but the savings seems to be stationary. India is a c natural resources. Labor is apparently and skilled labor is easily available given the high rates of unemployment among the educated class of the country. India is becoming a best destination for most of the investors. Make in India is the Governments effort to harness this demand and boost the Indian economy. Manufacturing currently contributes just over 20% to the national GDP. The target of this make in India campaign is to grow this to 25% contribution as seen with other developin nations of Asia. In the process, the target of the government is to generate jobs, attract much FDI and But the target should be much more but the savings seems to be stationary. India is a country rich in natural resources. Labor is apparently and skilled labor is easily available given the high rates of unemployment among the educated class of the country. India is becoming a best destination for most of the investors. Make in India is the Indian Governments effort to harness this demand and boost the Indian economy. Manufacturing currently contributes just over 20% to the national GDP. The target of this make in India campaign is to grow this to 25% contribution as seen with other developing nations of Asia. In the process, the target of the government is to generate jobs, attract much FDI and Role of HR and Financial Services in Making "Make in India" Campaign a Success by SamridhiGoyal , Prabhjot Kaur , Kawalpreet Sing stated that FDI has helped in employment generation, boosting trade and economic growth, safe guard and sustain the overall development of India and its citizen. He stated for fostering innovation, generate employment opportunities, intensify skill development preventing brain drain and making the use of internationally well quality technology affordable for Indian citizens. In order to make India a manufacturing hub its human resource and financial assistance will play a major role. There is a need for financial service providers and advisors who could work for these industrialists right from the beginning.

METHODOLOGY
This study carried out is analytical and empirical in nature. The study is based on published sources of data collected from various reports and publications of Government of India, RBI, IMF relating to foreign direct investment, economic journals, books, newspaper, magazines, internet and other previous research etc.

CURRENT SCENARIO OF FDI THROUGH "MAKE IN INDIA"
Government of India has taken various reformal initiatives like Make in India to create an enabling environment that has provided a push to manufacturing, design, innovation and entrepreneurship. With a growth rate of 7.5%, India has emerged as the fastest growing economy globally and it remains an oasis in the midst of a subdued economic landscape. The Prime Minister of India has introduced various schemes for the development of the country such as "Digital India", "100 Smart Cities" and "Skill India". The Make in India initiative, in particular, aims to make India an integral part of the global supply chain. Key focus sectors such as defence, railways, construction, insurance, pension funds and medical devices have all been rapidly opened up for Foreign Direct Investment. The Government of India has also taken up various measures to radically improve its 'Ease of Doing Business' ranking.

GROWTH OF MANUFACTURING SECTOR
Manufacturing has emerged as one of the high growth sectors in India. Mr. Narendra Modi, had launched the 'Make in India' program to place India on the world map as a manufacturing hub and give world recognition to the Indian economy. Presently India ranking among the world's 10 largest manufacturing countries has improved by three places to sixth position in 2017.The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per cent currently. India's manufacturing sector has the potential to touch US$ 1 trillion by 2025. There is potential for the sector to account for 25-30 per cent of the country's GDP and create up to 90 million domestic jobs by 2025.
The contribution of the secondary sector to GDP just after India gained independence was substantial. Early 1950-51, the manufacturing sector in India contributed only 8.98% to the GDP. However progress of industrial development in second five year plan by 1965-66, it had increased to 14.23%, at the start of 1980 this figure further increased to 16.18% but it remained constant in that decade until 1990-91. During the fiscal year 2016-17 the manufacturing sector contributed about 16% to the GDP.
Source: Ministry of finance, Department of economic affairs, Government of India

TOP INVESTING COUNTRIES
Mauritius led the share of top investing countries by FDI equity inflow into India with US$ 3,934 million during April-August FY 2016, followed by Singapore, Netherlands, and Japan etc. The share of top five leading countries is shown below as: