“FDI Flow and Industrial Production-An impact analysis of Make In India Campaign”

Make in India campaign was launched by Prime Minister, Shri Narendra Modi on 25 September 2014, to support companies in manufacturing their products in India. The ambitious campaign has been launched with an aim to turn the country as a destination of global manufacturing. This campaign is attracting focus from global manufacturer leads to inflow of money, FDI. This study highlights the changes in FDI rate after and before introduction of Make in India and its impact on growth rate of country. In August 2014, the parliament of India permitted 49% FDI in the defense sector and 100% in railways infrastructure to boost inflow. The study has been conducted on secondary data collected from various government sources, RBI, DBIE, SEBI and database of department of Industrial Policy and Promotion, on inflows before and after the “MAKE IN INDIA” campaign. The study has been conducted on monthly data since January 2013 to September 2015, period before and after start of “Make In India” campaign/Graphical representation of data has been followed by correlation study on rate of change in FDI flow and Rate of change in IIPM, to show the linkage of FDI flow and manufacturing industrial in selected period. The study also highlighted problem of poor infrastructure as a major hindrance in success of this campaign.