INFRASTRUCTURAL GROWTH UNDER MAKE in INDIA Dr

ISSN: 2249-7196 IJMRR/June 2017/ Volume 7/Issue 6/Article No-4/655-664 Dr. Deepali Behere et. al., / International Journal of Management Research & Review

INFRASTRUCTURAL GROWTH UNDER MAKE IN INDIA Dr. Deepali Behere*1 1HOD, Department of Commerce & Mgt., Career College, Bhopal, India. ABSTRACT The make in India launched by prime minister in September 2014 .As the part of a wider set of nation building initiatives .the make in India initiative has been built on layers of collaborative effort. The obsolete and obstructive frame works of the past have been dismantled and replace with a transparent and user friendly system that is help drive investments foster innovation developed skill, protected internet protocol and to build best in class manufacturing infrastructure. Infrastructure is integral to the growth of any industry .The govt. Intends to develop industrial corridors and build smart cities with state of the art technology and high speed communication Innovation and research activates are supported by a fast paced registration system and improved Infrastructure for IPR registration. Make in India has identified 25 sectors to promote with the detailed information being shared through an interactive web portal .the govt. has allowed 100% FDI in railway and removed restriction in construction. This initiative in tends to change .this by bringing A paradigm shift in the way govt. Interacts with various industries there are many instances of the initiative is Success. Construction sector in India will remain buoyant due to increased demand from real estate and infrastructure project construction activities contribute more than 8%of India„s GDP. Thus, the main purpose of this paper is show that the development of a nation state depends upon industrial infrastructure and its industrial progress. Sustainable development is being made possible by imposing high-quality manufacturing standards, while minimizing environmental ecological impact. Keywords: Infrastructure, growth, initiative. INTRODUCTION Development of a country depends on the availability of its infrastructural facilities. Development of infrastructure is a sine quanon of economic development. Development of agriculture depends, to considerable extent, on the adequate expansion and development of irrigation facilities. Industrial progress depends on the development of power and electricity generation, transport and communication. if proper attention is not paid to the development of infrastructure, it is likely to act as a severe constraint on the economic development process in the country. The various plans have focused attention on the expansion of infrastructure sectors. OBJECTIVE OF THE STUDY 1. To study about Infrastructural growth under make in India. 2. To explain the development of a nation state depends upon industrial infrastructure.

*Corresponding Author www.ijmrr.com 655 Dr. Deepali Behere et. al., / International Journal of Management Research & Review

RESEARCH METHODOLOGY This is descriptive research paper based on secondary data . Data have been collected through the book, magazines, journals, research paper and websites. New make in INDIA. INFRASTRUCTURE DEVELOPMENT UNDER MAKE IN INDIA CONSTRUCTION GROWTH DRIVERS According to the Ministry of Urban Development, ‘Urban Infrastructure’ should be equipped with all the necessary facilities. It should give a decent quality of life to its residents, promising clean and sustainable environment by applying smart solutions in the domain of sanitation, waste management, public transport and governance. India has an estimated urban housing shortage of 18.8 Million dwelling units. The housing shortage in rural India is estimated at 47.4 Million units, in 2012.Present levels of urban infrastructure are inadequate to meet the demands of the existing urban population. There is need for re- generation of urban areas in existing cities and the creation of new, inclusive smart cities to meet the demands of increasing population and migration from rural to urban areas. Future cities of India will require smart real estate and urban infrastructure. The Government of India is in the process of launching a new urban development mission. This will help develop 500 cities, which include cities with a population of more than 100,000 and some cities of religious and tourist importance. These cities will be supported and encouraged to hardness private capital and expertise through Public Private Partnerships (PPPs), to holster their infrastructure and services in the next 10 years. To provide quality urban services on a sustainable basis in Indian cities, the need of the hour is that urban local bodies (ULBs) enter into partnership agreements with foreign players, either through joint ventures, private sector partners or through other models. Drive economic growth and improve the quality of life of citizens by enabling industrial and urban infrastructure development. Industrialization and Urbanization -Nearly 31% of India‟s current population lives in urban areas contributing to 63% of India‟s GDP (Census 2011) and with increasing urbanization, urban areas are expected to house 40% of India‟s population and contribute to 75% of India‟s GDP by 2030.1 India‟s urban growth is largely concentrated in large cities with a population of 100,000 or more, the number of cities with a population exceeding 1 million has increased from 35 in 2001 to 5 in2011,accounting for 43% of India‟s urban population, and is expected to be 87 by2030. With an aim to improve the quality of life and attract investments to the City, setting in motion a virtuous cycle of growth and development, the government of India has launched various urban development schemes, such as:- 1. Industrial Corridors and 21 new nodal Industrial Cities to be developed: o Delhi-Mumbai Industrial Corridor (DMIC) o Chennai-Bengaluru Industrial Corridor (CBIC) o Bengaluru-Mumbai Economic Corridor (BMEC) o Vizag-Chennai Industrial Corridor (VCIC)

Copyright © 2017 Published by IJMRR. All rights reserved 656 Dr. Deepali Behere et. al., / International Journal of Management Research & Review o Amritsar Kolkata Industrial Corridor (AKIC) These 21 new nodal cities will be having advantages like; Large land parcels, Planned communities, ICT enabled infrastructure, Sustainable living, Excellent connectivity- Road, Rail etc. Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 100 billion with financial and technical aids from Japan, covering an overall length of 1,483 km. Dedicated Freight Corridor (DFC) of 1504 km as the backbone, DMIC will intersect 7 states namely Delhi, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra..Doubling of Network of Roads by 2020 and Construction of 15,000 km new roads by 2017 is targeted under various projects 1. Railway projects such as Setting up of New Railway Stations, Modernization of Rolling stock, High Speed Railways, Port Mine connectivity etc. have been initiated for Modernising and better connectivity of Indian Railways. 2. Eastern Dedicated Freight Corridor of 1840 km length and Western Dedicated Freight Corridor of 1504 km length is under construction as well as many projects are under planning stage. 3. Sagar Mala project is started by the Govt. of India to modernize India's Ports and Inland waterways so that port-led development can be augmented and coastlines can be developed to contribute in India's growth, providing a project outlay of US$ 10 billion 4. The Smart Cities Mission having a project outlay of US$ 7.69 billion is progressing, with Special Purpose Vehicles for 19 cities already set up. 5. Aviation industry with target of becoming 3rd largest by 2030 and to cater international and domestic traffic. New Design, Innovation and R&D Investment in innovation and R&D offers large payoffs in terms of economic growth and competitiveness in global economy. 1. 3rd largest tech driven Start-up ecosystem globally and Tech Startups in India are expected to reach 11,500 in 2020 from 4,300 in 2015 2. “Start-up India” initiative was launched aiming at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups. 3. Intellectual Property Rights Policy launched in May 2016 is having salient features: o Strong TRIPS compliant policy framework, Ease of Access using World-class IT enabled patent offices o Internationally acclaimed systems for International Searching and Preliminary Examination of patent applications o Augmentation of Manpower: 721 additional technically competent Patent Examiners appointed

Copyright © 2017 Published by IJMRR. All rights reserved 657 Dr. Deepali Behere et. al., / International Journal of Management Research & Review o Time for examination of patents to come down to 18 months from 7 years by March, 2018 Time for examination of trademarks to come down to 1 month from 13 months Infrastructural growth Second largest employer and contributor to economic activity, after agriculture sector. The construction sector accounts for second highest inflow of FDI after the services sector and employs more than 35 Million people.50% of the demand for construction activity in India comes from the infrastructure sector, the rest comes from industrial activities, residential and commercial development etc. The Indian construction industry is valued at over USD 126 Billion. Indian cities contribute significantly to India‟s GDP. As per a mid-term appraisal in 2012, the urban share of the GDP was 62% – 63% in 2009-10. This was further projected to increase to 70% – 75% in 2030. In 2001, about 286 Million were living in urban areas across India. It had the second largest urban population in the world. As per the Indian Census, 2011, the urban population had increased to 377 Million, thereby registering a growth of around 32%. As per recent estimates, nearly 590 Million people will live in Indian cities by 2030.Between 2005-08, the real estate sector grew by about 30% annually before slowing down significantly due to a 2008 global financial crisis. It grew by about 8% between 2009- 11 and 6.5% in 2012-13.As per industry estimates, the Indian real estate market is estimated to be approximately USD 78.5 Billion in 2013 and is expected to grow to approximately USD 140 Billion by 2017.According to FICCI-EY Real Estate Report 2013, India‟s real estate requires about USD 42 Billion (excluding housing for economically weaker sections) in investments by 2015. Residential real estate alone will require an investment of USD 29 Billion .Nearly half the additions to the Indian labour force over the period 2011-30 will be in the age group 30-49, adding to the demographic dividend. The share of output and employment from manufacturing in India had hardly changed in the past 30 years In contrast, the share of output from aggregate services rose dramatically over the last 30 years, from about 35% to more than 50% of GDP. Promoting Affordable Housing9

 100% deduction for profits to an undertaking in housing project for flats up to 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years.

 Extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work to Ready Mix Concrete. National Investment and Infrastructure Fund (NIIF)10

 To maximize economic impact mainly through infrastructure development in commercially viable projects, both Greenfield and Brownfield, including stalled projects. The initial authorized corpus of NIIF would be USD 3.08 billion, which may be raised from time to time, as decided by Ministry of Finance MAKE IN INDIA - CONSTRUCTION--Smart City ,.DMIC. ,Digital India, GIFT City3 Rular and Urban Transformation (AMRUT)

 Under 100 Smart Cities Mission, Smart Cities will be selected through a „City Challenge Competition,‟ linking financing and ability to achieve multidimensional objectives of urban infrastructure development like adequate and clean water supply, sanitation and solid waste management, efficient urban mobility and public transportation, affordable housing for the poor, power supply, robust IT connectivity, governance, especially e-governance and citizen participation, safety and security of citizens, health and education and sustainable urban environment. Smart City mission will be implemented through Special purpose Vehicles (SPV) to be managed by the state government.

 AMRUT will inculcate a project approach to ensure basic infra services such as water supply, sewerage, septage management, storm water drains, transport and development of green spaces and parks with special provision for meeting the needs of children. A minimum investment of over INR 2 lakh crore would flow into urban areas over the next five years (2015-16 – 2019-20) since States and ULBs would mobilise matching resources ranging from 50% to 66%. “The States/UTs have been requested to submit the names of potential Smart Cities in accordance with the stipulated Guidelines. Based on the recommendations sent by the States/UTs and due deliberations by the Apex Committee, the Competent Authority has approved the names of shortlisted 98 potential Smart Cities for Stage-2 Challenge. The State Governments have been requested to start making preparation for Stage 2 of the Challenge as given in the Smart Cities Mission Statement and Guidelines. Swachh Bharat Mission (SBM)

 SBM aims at elimination of open defecation, eradication of manual scavenging, scientific Municipal Solid Waste Management, to effect behavioral change regarding healthy sanitation practices, generate awareness about sanitation and its linkage with public health, capacity augmentation for ULBs to create an enabling environment for private sector participation in Capex (capital expenditure) and OMEX (operation and maintenance). The mission outlay is INR 62,009 crores. It covers all 4041 statutory towns. Heritage City Development and Augmentation Yojana (HRIDAY) HRIDAY aims to preserve and revitalise the soul of an Indian heritage city and reflect its unique character by encouraging aesthetically appealing, accessible, informative and secured environment and to undertaking strategic and planned development of heritage cities aimed at the overall improvement in quality of life with special focus on sanitation, security, tourism, heritage revitalisation and livelihoods retaining the city‟s cultural. It is a central sector scheme with 100% funding coming from Central Government. Initial Phase of the HRIDAY Scheme was launched in January, 2015 for a period of 27 months in twelve identified cities viz. 1) Ajmer 2) Amritsar 3) Amaravati 4) Badami 5) Dwarka 6) Gaya 7) Kanchipuram 8) Mathura 9) Puri 10) Varanasi 11) Velankanni 12) Warangal for development of the towns under the scheme with a total outlay of 500 crores. INVESTMENT OPPORTUNITIES

 Construction development in residential, retail, commercial and hospitality sectors.

 Technologies and solutions for smart sustainable cities and integrated townships.

 Technologies for the promotion of low cost and affordable housing.

 Green building solutions.

 Sustainable and environmentally friendly building materials.

 Training and skill development of construction sector workers.

 Smart cities.

 Urban water supply, urban sewerage and sewage treatment. FDI POLICY Construction - Development projects (which include development of townships, construction of residential/commercial premises, road or bridges, hotels, resorts, hospitals, educational institutes, recreational facilities, city and regional level infrastructure, townships) - 100% FDI through automatic route is permitted. The conditions under this sector are:  No minimum land area requirement in case of development of serviced plots.  In case of construction-development projects, minimum floor area of 20,000 sq. mts.  The investee company should bring in a minimum FDI of USD 5 Million within six months of commencement of the project. The commencement of the project will be the date of approval of the building plan/layout plan by the relevant statuary authority. Subsequent tranches of FDI can be brought within the period of 10 years from the commencement of the project or before the completion of project, which ever expires earlier.

 The investor will be permitted to exit on completion of the project or after the development of trunk infrastructure i.e., roads, water supply, street lighting, drainage and sewerage.

 The government may, in view of facts and circumstances of a case permit repatriation FDI or transfer of stake by one Non-Resident investor to another Non-Resident investor before the completion of project. These proposals will be considered by FIPB on case to case basis.

 The Indian investee company will be permitted to sell only developed plots. (plots where trunk infrastructure is available).

 It is clarified that 100% FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes and business constructions.

 FDI is not allowed in the real estate business or construction of a farmhouse and trading in transferable development rights (TDR).

 100% FDI is allowed under the aucture areas like urban transportutomatic route for urban infrastructure, water supply, sewerage and sewage treatment subject to relevant rules and regulations.

FDI Policy for Industrial Parks 100% FDI is allowed under the automatic route. „Industrial Park‟ is a project in which quality infrastructure in the form of plots of developed land or built-up space or a combination with common facilities is developed and made available to all the allottee units for the purposes of industrial activity.FDI in industrial parks is not subject to the conditionalities applicable for construction development projects etc., provided the industrial parks meet with the under- mentioned conditions. It should comprise a minimum of 10 units and no single unit should occupy more than 50% of the allocable area. The minimum perce DI in industrial parks is not subject to the conditionalities applicable for construction development projects etc., provided the industrial parks meet with the under-mentioned conditions. It should comprise a minimum of 10 units and no single unit should occupy more than 50% of the allocable area. The minimum percentage of the area to be allocated for industrial activity will not be less than66% of the total allocable area. FOREIGN INVESTORS

 Hines (USA)

 Veolia (France)

 Ascendas (Singapore)

 Aqualyng AS (Norway)

 Tishman Speyer (USA)

 Emaar Properties (UAE)

 The Trump Organization (USA)

 Alstom (France)

 Hydro-Comp Enterprises Cyprug

 GIZ (Germany) CENTRAL GOVERNMENT INITIATIVES STATE REFORMS The Central Board of Excise and Customs (CBEC) has implemented „Indian Customs Single Window Project‟ to facilitate trade. Now importers and exporters can electronically lodge their customs clearance documents at a single point only with the customs. The number of mandatory documents required by customs for import and export of goods have been reduced to three viz. Bill of Lading, Invoice cum Packing List and Import Declaration. Getting Credit--SARFAESI (Central Registry) Rules, 2011 has been amended. The amendment modifies rule 4 to include additional types of charges, including: "security interest in immovable property by mortgage other than deposit of title deeds"; "security interest in hypothecation of plant and machinery, stocks, debt including book debt or receivables"; "security interest in intangible assets, being know-how, patent, copyright, trademark or any other business or commercial right of similar nature"; and "security interest in any under construction residential or commercial building or a part thereof". This amendment allows (Central Registry of Securitization Asset Reconstruction and Security

Interest) CERSAI to register these additional charges. This amendment will allow uploading of data pertaining to security interests created on all types of properties covered by the definition of property in Section 2(1)(t) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) i.e. immovable as well as intangible. Getting Electricity -In both Delhi and Mumbai, the distribution companies have stipulated that electricity connections will be provided in 15 days and the number of documents required to obtain an electricity connection have been reduced to only 2. Online application for connections above 100 KVA have been made mandatory in Delhi and Mumbai. This will reduce procedures, cost and time taken to obtain an electricity connection significantly. In Mumbai, Brihanmumbai Electric Supply and Transport (BEST) has improved its SAIDI by 3% in the period Jun 2015-Mar 2016, and SAIFI by 11% in the same period and Tata power has improved its SAIDI by 2.42 and it‟s SAIFI by 2.41 Registering Property-In Delhi, all sub-registrar offices have been digitized and sub- registrars' records have been integrated with the Land Records Department and in Maharashtra all property tax records have been digitized. The digitization of property records will overcome the cumbersome and time consuming paper work for registering properties. It will ensure transparency and allow citizens to ascertain history of transactions in digital mode. Resolving Insolvency-The Insolvency and Bankruptcy Code, 2016 is expected to introduce new dimensions in Resolving Insolvency in India. This is India‟s first comprehensive legislation in the area of corporate insolvency. Paying Taxes--The ESIC has developed a fully online module for electronic return filing with online payment. This has greatly reduced the time to prepare and file returns. With introduction of e-Verification system, there remains no physical touch point for document submission to Income tax authorities. Dealing with construction permits- Municipal Corporations of Delhi as well as Municipal Corporation of Greater Mumbai have introduced fast track approval system for issuing building permits with features such as Common application form, provision of using digital signature and online scrutiny of building plans. Delhi has a uniform building by the laws, 2016 which allows for risk-based classification regimes for different building types. The uniform building bye laws have provision of deemed approval of sanctioning building plans within 30 days. India – Ease of Doing Business Ranking Rankings and weight ages on each of the above mentioned parameters are used to develop an overall EODB ranking. A high EODB ranking means the regulatory environment is more conducive for starting and operating of businesses.

YEAR 2015 2016 2017 INDIA‟ S EODB RANKING 134 131 130

Among the chosen 189 countries for this index, India was ranked 134 in 2015 on the World Bank‟s Doing Business index. Since then there has been a remarkable improvement. Since 2014, the Government of India launched an ambitious program of regulatory reform aimed at making it easier to do business in India. The program represents a great deal of effort to create a more business-friendly environment. The efforts have yielded substantial results with India jumping 4places on the World Banks‟ Doing Business rankings. Positive changes have led to this impressive improvement in India‟s ranking on the EODB index:

 Starting a Business: India‟s ranking on this parameter has improved from 164 in 2015 to 155 in 2016. This improvement has been mainly on account of decrease in number of procedures and time taken to start a business in India.

 Getting Electricity: India‟s ranking on this parameter has improved from 99 in 2015 to 70 in 2016. The number of days taken to get a permanent electricity connection for a business is just 53 days, which is less than the average time taken in South East Asian and OECD member countries.

 Apart from the above-mentioned parameters, India fairs particularly well in terms of „Protecting interests of Minority Investors‟, where it ranks 8 among the 189 countries which are part of this index. CONCLUSION Development of Infrastructure is an important element of the country. With the growth and expansion of urban centre and with the increasing concentration of population in urban areas of the country .the government has taken up a number of central and centrally sponsored schemes to improve the economic and physical Infrastructure and also provide essential facilities and services in the different areas. Thus the development of a nation state depends upon industrial infrastructure and its industrial progress. Sustainable development is also being made possible by imposing high-quality manufacturing standards, while minimizing environmental ecological impact. Under make in India Infrastructural growth is high. REFRENCES [1] Puri VK, Mishra SK. Indian economy. [2] Dhar PK. Indian economy. [3] India today-Dec2016. [4] India 2016. [5] Pratiyogita Darpan, Sep 2016. [6] Danik Bhaskar, 12 May 2016. [7] Economic Time, June 2016. [8] Manorama Year Book, 2016. [9] http://smartcities.gov.in/writereaddata/SmartCityGuidelines.pdf [10] http://smartcities.gov.in/writereaddata/smartcityguidelines.pdf

[11] http://amrut.gov.in/writereaddata/AMRUT%20Guidelines%20.pdf [12] http://amrut.gov.in/writereaddata/Fund%20Allocation.pdf [13] http://pib.nic.in/newsite/PrintRelease.aspx?relid=119925 [14] http://pib.nic.in/newsite/PrintRelease.aspx?relid=142548 [15] http://swachhbharaturban.gov.in/ [16] http://dipp.gov.in/English/Policies/FDI_Circular_2016.pdf [17] http://indiabudget.nic.in/ub2016-17/bh/bh1.pdf [18] http://arthapedia.in/index.php%3Ftitle%3DNational_Investment_and_Infrastructure_Fun d_(NIIF) [19] http;//makeinindia.in