Make in India - what to expect?

The prime minister of India, days before his visit to America, launched the "Make in India" campaign, to welcome domestic and international investors to create employment opportunities and lead the country towards economic growth. In order to make India a manufacturing hub, an active cooperation for companies or industry by providing a special cell that ensures smooth regulations was the need of the hour.

Under the campaign, the government of India has identified twenty-five thrust sectors where potential investment and manufacturing of products can be fruitful. Railways, tourism and hospitality, wellness, leather, aviation, ports, chemicals, IT, pharmaceuticals, and textiles are some of them. With textiles and garments having a significant contribution to the GDP of the nation and the country boasting to be the second-largest manufacturer of textile products, there are ample opportunities for investors to explore.

Since the textile industry of India also plays a significant role in creating employment, generating a substantial industrial output, and bringing revenue through export of garments and other textile products, inviting investors through a platform like "Make in India" can be beneficial. The nation is also home to 24 percent of the world's spindle capacity and 8 percent of rotor capacity, along with a loom capacity (consisting of both handlooms and mechanized) of 63 percent, which is the highest in the world.

There are many aspects that garner attention from investors around the world to invest in the textile and garment sector of India. The size of the garments and textile market in the country is big for one. According to the Indian Brand Equity Foundation (IBEF), the nation has the potential to reach global trade in textiles to about 8 percent and can be worth $80 billion by 2020.

The "Make in India" programme also has incorporated a bundle of other initiatives along with laying a red carpet for investors. This includes many new initiatives crafted to facilitate investments, protection of the intellectual property rights, nurture innovations, and provide a world-class manufacturing infrastructure. Moreover, the campaign is not only launched at a national level but also at the state level to provide a wide reach for investors. It is also further going to be promoted at missions abroad to find top corporates and will also find companies in the domestic textile market that have been using innovative technologies, who will be provided support to help them become world leaders.

The fashion and apparel industry is also a prospective area in which investments can be expected since India offers 100 percent Foreign Direct Investment (FDI) in single-brand retail and 51 percent in multi-brand retail. This allows foreign brands to enter India by either a joint venture or having a licensing agreement with a domestic brand or company. Since many small and medium-scale enterprises supply apparels to international brands, they will benefit from Modi government's "Make in India" initiative. A lot of multinational brands foraying into the apparel market will face competition and maintaining costs will source from India to sustain and provide the latest products in a short span of lead time. This will intern improve the supply chain efficiencies, designs, and overall products of the domestic companies consequently leading to updated processes and upgraded manufacturing setups.