1.

Why
Disguised
Skill People?
unemployment
services
2. Make in industry
India Agro
3. Reap demographic
18.7
Div.
31.7 49
24
49.6
27
GDP contribution Employment
Disguised unemployment vs. Skilling
demographic dividend
Land consolidation => bigger farm Why?
=> mechanization => agro output
~6 crore worker shortage in 1st
world by 2020.
Only 10% of new India workers
skilled. (China 50%)
Make in India useless without skilled
workers.
 Skill Ministry
NSDC (UPA)
(Modi)
National Skill
Development Council
(2009) Modi setup special
Ownership: 49% Ministry for Skill and
Finmin + 51% private entrepreneurship
Skill 15cr Indians by
2022
Skilling: HOW?

PMKVY
Skil
l Din
Dayal
Indi
a Minoriti
es
 Budget
national multi-skill programme
2014
employability + entrepreneur Skill India
skills program
Traditional professions like
welders, carpenters, cobblers,
masons, blacksmiths, weavers
etc
Budget 2015: National Skill
Mission- to consolidate various
programs
 Existing
Udaan: J&K youth skill
training program (MHA ,NSDC) UDAN
STAR
STAR: National Skill
Certification and Monetary
Rewards Scheme (NSDC) =>
PMKVY
 NEW
1. Pradhan Mantris Kaushal PMKVY
Vikas Yojana (Mar-21-
2. Replaces NSDCs STAR 2015)
scheme
3. Complete training => 8k +
certificate. Need Aadhar +
Bank account
4. >8k reward for mfg. courses
5. Eligible for loans 20k to 1.5L
 NEW
1. Soft skill +computer courses PMKVY
2. 14 L Youth + 10 L Workers (Mar-21-
=24 lakh people covered 2015)
3. Focus on class10, 12
dropouts.
4. 1,500 Crores allotted: 10%
for NE.
Skilling: HOW?

PMKVY
Skil
l Din
Dayal
Indi
a Minoriti
es
Din Dayal Antyodaya Yojana: Detailed Article Link

Greemin Kaushalya
Ministry of Rural Development
Train 10 lakh in 3 years, PH attention,
Intl.Syllabus

Urban
Min. Housing & Urban Poverty Alleviation
Train 5 lakh each year, setup SHG, Cheap
Loans, Vendor Training
Skilling: HOW?

PMKVY
Skil
l Din
Dayal
Indi
a Minoriti
es
 Budget
Up gradation of Traditional
2014
MINORITIE
Skills in Arts, Resources and
Goods S
USTAAD
Kashmiri embroidery
Bengali Muslim: Jardosi
embroidery
Sikh- Phulkari embroidery
Buddhist Thangka painting
Skill training Madrasa passouts
Budget
with their mainstream 2015
Nai Manzil
counterparts.
They can get better employment
without formal school leaving
certificate
As such launched post-Budget
2014
But Money formally sanctioned in
budget 2015 (~3k crores)
Skilling: problems: no common definition, still lot of overlapping
among ministries

Why? How? Later

DemDiv: 65% schooling, /
below 35% ASER
Make in India New
Shift away AIIMS/IITs ,
from Agro Pension /
Insurance
Make in India

Why?
How?
Policy
interventions
 Why Make in India?:
Ans. recycle points from why Skill India
 WHY?
India became Agrarian =>
direct service economy. Not Make in
much focus on mfg. sector. India
3D-Strength = democracy,
demographic dividend,
demand in huge quantity
Make in India

Why?
How? 5 pillars
Policy
interventions
 Make in India: HOW -5 Pillar Strategy

Simplif IPR Focus Infra. Open

y protecti 30 New
Process on Sectors Sectors
es (FDI)
 Challenge?
1. But, World Economic Forum's
Global Competitiveness Make in
Index: 71 (2014, September) India
2. World Bank Ease Of Doing
Business Rank: 142 out of
189 (2014, Oct). Target: 50th
Rank by 2017.
 Make in
1. industrial license valid for 3
India
years Simplify
2. New Factories bill, Shram Procedures
Suvidha portal for self
compliance
3. Companies Act 2013
4. eBiz portal to apply online
5. Special team to guide first
time investor
Budget 2015: Tax-clarity and ease of doing Biz.
Ref: L4/P1 PPT Ref: L4/P2 PPT
Foreign Trade
Policy 2015
 Make in India: 5 Pillar Strategy

Simplif IPR Focus Infra. Open

y protecti 30 New
Process on Sectors Sectors
es (FDI)
 Make in
1. Copyright =>HRD India
IPR
2. Patent protection
3. Design & trademarks
4. GI
 Make in
Patent: innovative product India
/ process for industrial use IPR
Patent
DIPP=>Patent office.
Indian patent offices to
connect online under
Madrid Protocol
Automated applications
 Make in
Industrial design India &
Design
registration for 10 Trademark
years. Renewed again s
for 5 years.
trade marks:
Automated registration,
infinite renewal
 Make in
A statutory GI registry India
Geographi
body @Chennai cal
Indicators
Foreign companies can
register GI in India
under WTO-TRIPS
agreement
Follow up: special 301 report Article Link
 Make in India: 5 Pillar Strategy

Simplif IPR Focus Infra. Open

y protecti 30 New
Process on Sectors Sectors
es (FDI)
 Make in
India
30 sectors
Potential to
become
world top-10
Skilled men,
resources,
demand
available
 Make in India: 5 Pillar Strategy

Simplif IPR Focus Infra. Open

y protecti 30 New
Process on Sectors Sectors
es (FDI)
Later in Relevant
Survey Chapters.
Under Act East Policy
Budget
2015
Make
Setup mfg. units in Cambodia,
Myanmar, Laos, Vietnam. (CMLV) Outside
Via special purpose vehicle (SPV) India
Become part of regional Value
chain
From CMLV, Export to countries
having FTA with CMLV. (e.g. China)
Make in India

Why?

How? 5 pillars
3 Policy
interventions
Make In India: Policy interventions required

Efectivene
Protectionis
Controve m
Industrial
ss
rsy
Policy
Ease of
Doing Biz.
Reform tax, labor, land laws Policy
E.g. Rajasthan: industrial dispute act Ease of
only on units with 100 300 workers or
more. Doing Biz
Linking MNREGA with skill /
apprentice programs.
Connectivity and infrastructure
Promote investment FDI
Will benefit all sectors.
Highly efective, Least controversial
Make In India: Policy interventions required

Efectivene
Protectionis
Controve m
Industrial
ss
rsy
Policy
Ease of
Doing Biz.
 policy
Give Subsidies, grants
Cheap loans Industrial
SEZ for mfg. industries policy
Controversial because
1. Fiscal deficit
2. SEZ: land acquisition
3. Non tarif barrier: WTO
disputes
Make In India: Policy interventions required

Efectivene
Protectionis
Controve m
Industrial
ss
rsy
Policy
Ease of
Doing Biz.
 Policy
Tarif barrier on foreign goods.
domestic requirement in public Protectioni
procurement sm
Controversial because
1. WTO, Trade agreements
violated
2. Indian exporters will get similar
treatment elsewhere
3. Smuggling, parallel economy
Make In India: Policy interventions required

Efectivene
Protectionis
Controve m
Industrial
ss
rsy
Policy
Ease of
Doing Biz.
 Mains / Interview
In a globally integrated economy,
Indian Government has limited policy
maneuvers to promote Make in India.
Discuss.
3 layered pyramid
Tarif barriers (high taxes) x WTO
Non-Tarrif Barriers (subsidies) x WTO |
Fiscal deficit.
1. Skip 2. Attempt 3.
More: TPP, RCEP, Foreign Trade policy
Survey: Making, Skilling, Mfg, Services

Why and Why and

How How
5 pillars Skill India x
Policy 3 areas
Make in
interventio Skill
India
n India
 Mains / Interview Q. from survey
1. Since the industrial revolution, no country has
become a major economy without becoming an
industrial power. Examine the importance of
Make in India in this regard. (Lee Kuan Yew)
2. The future trajectory of Indian economic
development depends on both Make in India
and Skill India. Elaborate
3. Inclusive growth necessitates greater focus on
manufacturing than service sector. Do you
agree?
1. Skip 2. Attempt 3.
3 ways to boost GDP (survey Vol1.Ch7)

Geograp
Geology Jeans
hy
3 ways to boost GDP (survey Vol1.Ch7)

Geology Geography Jeans

Energy & Tourism Low Skills

Minerals Barbados mfg.
W.Asia Mauritius China
Botswana Caribbean Thailand
Chile Indonesia
Australia Malaysia
Canada
1. Geology: Shale Gas technology
GDP
Indias
bottlenecks. Coal mining scam.
Jeans
2. Geography: Tourism potential
Conundru
yes, but alone insufficient to
sustain a large nation.
m
3. Jeans: Low skilled mfg. Most
East Asian economies grew with
this. India has abundant low skill
manpower= natural advantage.
 Direct jump to high-end, high-skill mfg =Problem

Agrari
an
Our natural Low
advantage Jeans skill
mfg.
here
Jeans-XP = Jets
But Make in India High-
direct focus on such Jets Skill
high-end mfg.
Jump difficult.
 Make in
India
30 sectors
Skilled men?
Inclusive
growth?
1. Rapid growth comes from domestic GDP
market.never in history
2. Rapid growth comes from export of Export
mfg. goods (not services) Demand
3. Other nations cant absorb all our
imports, given FTA/Trade
agreements among giants (make
OUTSIDE India)
4. Constructionnot tradable /
exportable
 Focus? Service vs manufacturing?

Manufacturing

Registered mfg. Need highly

= 7x more skilled men
productive than Not inclusive
unregistered
If all Labour
capital

Services
employed well
be richer than
S.Korea
But require
skilled workers
1. Gujarat: 20% GSDP from registered Mfg. sector
mfg. units- Closer to growth model Reg.MFG
of East Asian economies. not
2. But this model not inclusive. inclusive
Gujarat only 5% employed in
Reg.MFG units (diploma minimum)
3. + poorer states must growth
@faster rate, else regional
imbalance, Naxal issues.
 So far
Geography, Geology,
Jeans

Service vs. mfg =

Reg.mfg

Red.MFG= skill India

 Indias premature De non-industrialization

Agrari
an
Our natural Low
advantage Jeans skill
mfg.
here
Large capital invested
here Servic Outsourc
ing to
2 digit growth rate = e Jeans
economi
yes
Giant es
Inclusive growth = no
 Mains / Interview
Make in India is a flawed Idea. Do you agree?
Re.Mfg = high skill, not our natural advantage.
Export capture difficult.
Premature non-industrialization
Difficult to absorb capital, workforce for inclusive
growth
Rajan: not necessary Chinese mfg-story will
replicate everywhere.

1. Skip 2. Attempt 3.
 Skilling: Challenges
Poor return on
50- Education Till then have to
make do with this
90s Low Skilled
Generation generation
By rehabilitating
Mid- English
Medium
thru skill India
2005 Boom

Will
enter in
2020 workforc
e
 Mains / Interview
The future trajectory of Indian
economic development depends on
both Make in India and Skill India.
Elaborate
1. Jeans economy, export demand=
GDP boost
2. Registered mfg. units need skilled
workforce.
1. Skip
3. poor 2. Attempt
return on education till mid- 3.
Sectors that can transform India
 Service sector
Rankings

Tourism

IT/ICT

E-Commerce / Retail

Entertainment
Overall Service services
India:
GDP GDP service
high in
USA USA
GDP but
low in
China China
employme
nt
Japan Japan

India India
10th 11th
India #1 in service exports
Services share in GSDP of the states
Highest FDI inflows in Service sector
 Services
World GDP: 7 trillion USD, Total
250+ million jobs. Every 1/ 11
jobs. Tourism
Within India: 5% direct, 7%
indirect jobs due to Tourism.
Buddhist circuit
Ganga cleaning
Visa on Arrival and E-visa.
Tourist destinations
 Services
Single largest contributor
35 lakh employed
IT/Comm.
Global Competitiveness Index
2014: India sucks on most
parameter, compared to 1st
world and even among BRICS
Internet penetration low.
More: Foreign trade policy
lecture
Innovation and India
 Service sector
Rankings

Tourism

IT/ICT

E-Commerce / Retail

Entertainment
65% population below 35% Services
Urban nuclear families, Disposable Retail
income
trade
E-commerce to grow by 50% in 5
years
Consumer protection act 1986
needs update.
FDI multi-brand retail- 51% with
Government approval but many
caveats. (Budget, Survey silent tho.)
 Services
Largest # of TVs: US, China,
India (16 crore) Entertainm
Television, print, animation, ent
VFX etc. billion dollar industry
Digitization of cable TV: 4
phases, by 31/12/2016
Result: better service, better
revenue
 Services
News Broadcast: 26% FDI
DTH: 74% Entertainm
Films: 100% ent
Disney, Fox, Sony, Warner co-
producing movies with Indian
companies.
 Services

DTH Operators 7 Entertainm

ent
Community Radio 179

FM Radio 243

TV Channels 826
Pending services: in Infrastructure lecture

Shippi Railwa Teleco Real

ng ys m Estate
Housi
ng
 Future Lectures
And chapters

Disinvestment,
infra.
Insurance, FDI-
FII
HRD, Social NEXT