Make in India can be a path breaking campaign provided it is grounded by right policy measures and innovation ecosystem. Technology has a pivotal role in this and the efforts of the nation in promoting technological innovations have so far yielded limited success. Technology transfer requires easing FDI limits and other fiscal incentives. However, the past experience of technology transfers in military indicated failure to deliver by foreign partners. Liberalization as well as stringent conditions is hence important to make technology transfer through collaborations. Indian government has announced some fiscal incentives and welcomed collaborations. In the light of this, the need for developing competences for technology absorption has gained attention. The paper presents technology transfer and absorption issues for the success of Make in India.

1. International Journal of Advanced Scientific Research & Development (IJASRD)
ISSN: 2394 – 8906
www.ijasrd.org, Pp: 10 – 14
Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 10 | P a g e
R.V.S. College of Arts & Science, Karaikal
Make in India: Innovate to Succeed
Dr. C. S. G. Krishnamacharyulu 1
ABSTRACT: Make in India can be a path breaking campaign provided it is grounded by
right policy measures and innovation ecosystem. Technology has a pivotal role in this and
the efforts of the nation in promoting technological innovations have so far yielded limited
success. Technology transfer requires easing FDI limits and other fiscal incentives. However,
the past experience of technology transfers in military indicated failure to deliver by foreign
partners. Liberalization as well as stringent conditions is hence important to make
technology transfer through collaborations. Indian government has announced some fiscal
incentives and welcomed collaborations. In the light of this, the need for developing
competences for technology absorption has gained attention. The paper presents technology
transfer and absorption issues for the success of Make in India.
KEYWORDS: Technology, Innovation, Transfer, Absorption, Collaboration.
Make in India is an initiative of the government of India, launched on 25 September
2014 by Prime Minister Narendra Modi with focus on 25 sectors of the economy.
Manufacturing in India declined from 18% to 17% of the GDP, according to the new GDP
data, while manufacturing exports have remained stagnant at about 10% of the GDP1
. The
new thrust on make in India aims at rejuvenating the ailing manufacturing sector of our
country. It hopes to promote high quality standards and minimize impact on environment
and increase GDP and tax revenue. Towards this, the government of India took policy
measures. But success depends on appropriate thrust on technology – its creation, transfer
and absorption.
Technology the Key
Technology innovations can change the face of economies. It is inventions like steam engine,
penicillin, computer and mobile phones that have led to the rapid development and wealth
creation of nations in the world.
A major highlight of the 'Make in India' initiative is to use technology to leapfrog in terms of
industrial growth” said, Amintabh Kant, secretary to Department of Industrial Policy and
Promotion2
. Accordingly, the fortunes of the much-touted campaign which aimed at cutting
dependence on foreign supplies and ultimately getting a toehold in the global export market
—will depend on the willingness of suppliers to develop and share sophisticated
technologies.
Science and technology in India rest on four pillars3
:
 Techno-nationalism - In some fields like space, defence, nuclear energy, and
supercomputer. India could not obtain certain technologies, and the country had to
make do with export control regimes. In response, India has placed emphasis on
developing its own technologies
1
Director, RVS Institute of Management Studies and Computer Application, Karaikal

2. International Journal of Advanced Scientific Research & Development (IJASRD)
ISSN: 2394 – 8906
www.ijasrd.org, Pp: 10 – 14
Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 11 | P a g e
R.V.S. College of Arts & Science, Karaikal
 Inclusive growth - It means making S&T work on behalf of the poor of India,
combining equity and excellence, creating economy products. The launch of the Nano
automobile by Tatas, a low-cost vehicle for the lower-middle class, is another
example. The green revolution, which made India self-sufficient in food, belongs to
this category too, since its effect was to include a vast majority of rural farmers who
were otherwise excluded.
 Techno-globalism - This refers to the location of knowledge production centres in
countries that offer the required skill base at low cost. In India, this led to multiple
offshore R&D services utilizing India’s low-cost scientific manpower. This resulted
in Indian S&T talent being used within the country, rather than outside the country, to
create technology for global players.
For example, GE set up its R&D in India because India offered the highest
intellectual capital per dollar spent. Taking advantage of this, more than 300
multinational companies have set up their R&D centres in India, including GE, IBM,
Microsoft, Dupont, Dow, Shell, and General Motors. Indian scientists and researchers
have created intellectual property for numerous foreign firms.
 Global leadership - To achieve this, there is a need for substantial improvements in
the quality of basic research, creating ‘innovation ecosystems’ comprised of
intellectual property (IP) laws, venture capital, and so forth. . This also means that
Indian IQ will not be used just to create IP for multinational but Indian IQ will
generate IP for Indian companies. It also means that the “brain drain” phenomenon
will be reversed.
Measures for Technology Creation:
For innovations to happen, a country has to rightly harness its technology creation
potential. While neighboring nation China, could file 5, 36,412 patent applications, India has
filed only 42,291 applications indicating how much India is lagging behind. Several steps are
initiated by Indian government in promoting innovation in the country as given under4
.
 Declaration of 2010- 20 as the Decade of Innovation.
 Establishment of National Innovation Council and formulation of Science and
Technology policy to create robust national innovation eco-system.
 National Innovation Foundation (NIF) to encourage, assist and reward innovations
even at grass root level.
 Promotion of Innovation among Individuals and MSMEs (PRISM)
 Grass - root Innovation and Augmentation Net Work (GIAN)
Collaboration for Technology Transfer
Technology transfer requires consideration of terms of partnerships and reliability in
performance.
Partnership Terms: Foreign companies require strong incentives for technology
collaboration, and easing their restrictions on transfer of technology. According to some
foreign players, liberalization of foreign direct investment (FDI) limits could help solve the

3. International Journal of Advanced Scientific Research & Development (IJASRD)
ISSN: 2394 – 8906
www.ijasrd.org, Pp: 10 – 14
Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 12 | P a g e
R.V.S. College of Arts & Science, Karaikal
problem. At present, the FDI limit is set at 49%. Yves Guillaume, president India, Airbus
Group, said, “It would be much easier for us to transfer cutting-edge technologies to a joint
venture in India in which we have management control.” However, some experts oppose this
move. Technology transfer, according to them is not dependent on ownership pattern of a
firm, but on the size and growth of market.
If full technology transfer is not possible without management controls, India can take
advantage of even the limited technology transfer. Former IAF chief, Air Chief Marshal Fali
Major Observed5
:
“Coca Cola is made all over the world, but will they ever share the formula? No one
will give you source codes for missiles. But limited technology transfer can also be good
value addition as it will help us branch out in the sector and also create jobs”.
Reliability: Technology transfer proved to be a mixed experience for Indian
companies especially the military organizations. Some of the crucial projects hit by it
involve Scorpene submarines, T-90S tanks, the long range surface-to-air missile (LR-SAM)
and the Sukhoi-30 MKI fighters. Unless some stringent conditions like holding top
management of the foreign company criminally liable for making false declarations,
technology transfer will be a failure.
Ashok Atluri, managing director, Zen Technologies, an indigenous firm that manufactures
simulators maintained that more than 90% value capture happens in technology. Indian
private players are doing limited peripheral work in defence sector. He said, “We will be
doing a pizza delivery job without influx of cutting-edge technologies.” For instance, their
supplies range from fuselage assembly for US defence giant Boeing’s Chinook heavy lift
choppers to making cabins for American firm Sikorsky’s S-92 helicopters6
.
Budget Paves the Way
Indian government, in its Finance Budget 2015 -16 took steps to promote
technology transfer and cheaper imports till indigenization is complete and skill development
to make technology absorption easier7
.
 It sought to facilitate cheaper technology transfer to small businesses by more than
halving the rate of income tax on royalty and fees for technical services to 10%.
 The budget announced customs duty cuts on 22 items that will make it cheaper for
Indian companies to import parts to manufacture products. He thrust higher duty on
importers of commercial vehicles such as trucks and buses to protect domestic
makers, and to lift a number of accompanying sectors.
 As against 5% of the potential workforce who get formal skill training, the number is
sought to be increased through a National Skills Mission to consolidate skill
initiatives spread across several ministries. In the works is also a scheme called Deen
Dayal Upadhyay Gramin Kaushal Yojana to enhance the employability of rural youth.
New Collaborations
Further, the government invited different nations to become partners to this
porgramme. Here are some examples.

4. International Journal of Advanced Scientific Research & Development (IJASRD)
ISSN: 2394 – 8906
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Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 13 | P a g e
R.V.S. College of Arts & Science, Karaikal
 Israel, a tiny country which has fought enemies from all around by developing new
technologies to intercept rockets and missiles, has expressed willingness to cooperate
closely in the defence and security sector with its offers of flexible technology
transfer8
.
 Turkey is among the focused countries for the Tata Group, especially for its steel and
power arms. Turkish companies can participate in areas of technology, energy,
machine equipment, infrastructure, petrochemicals, food and processing, among
others9
.
 Arun Kumar, Director General of the US and Foreign Commercial Service,
reiterated the US' willingness to partner on merit and innovation, and to share best
practices with India, through programmes like the ‘Manufacturing Extension
Partnership Network’10
.
Absorbing Technology
Recently, the US has agreed to share high-end technologies related to aircraft
carriers, unmanned aerial vehicles and hot engines for fighters with India. However, they
express doubts on the capacity of Indian companies to absorb high-end technologies. Top
executive of an American aerospace firm said: “It’s not as simple as throwing designs and
drawings across the wall. The aerospace ecosystem has to be such that India becomes
globally competitive.11
However, some Indian SMEs are giving hope in this aspect. Krishna Industries, headed by its
Chairman Ashwin Shah rose to the occasion and accepted the challenge. After months of
R&D and support from the DRDO, the company manufactured Bulb bars freeing India from
the burden of imports. The engineering breakthrough makes India the 5th country in the
world to make a warship from its own steel. It was a proud feat for India and it was awarded
the ‘Defense Technology Absorption Award 2013. At the award ceremony, Ashwin Shah told
the Prime Minister, “Sir, you had said Come, make in India and I am proud to say yes we
made it in India12
!”
Conclusion
The Indian government’s recent initiative to accelerate Make in India is a welcome
step. In the coming years, India should aim for world leadership in at least some areas. Future
Indian science should be based on creativity. Realizing science as a social movement, and
developing a scientific temper, is the need of the hour. While stepping up investment on
R&D is vital, it is the commitment and creativity that matters most. This is proved by the
ISRO which launched Mars and this demands not merely governmental programmes but
actions undertaken by leaders in various sectors, people’s groups, and non-governmental
organizations.
References
[1] Aarathi Krishnan, The Modi imprint on the Budget, The Hindu, Business Line, February
28, 2015.

5. International Journal of Advanced Scientific Research & Development (IJASRD)
ISSN: 2394 – 8906
www.ijasrd.org, Pp: 10 – 14
Two Day National Seminar on “Make in India: How Get the Manufacturing Going” 14 | P a g e
R.V.S. College of Arts & Science, Karaikal
[2] ET Bureau, Make in India to use technology for industrial growth, The Economic Times,
January 22, 2015.
[3] R.A.Mashelkar, Indian science, technology, and society: the changing landscape,
available at Indian science, technology and society – National.
nif.org.in/dwn_files/mashelkar/S&T%20Article%20by%20RAM.doc.
[4 Rahul Singh, Make in India could hit tech transfer firewall, The Hindustan Times,
February 17, 2015
[5] loc. Cit.
[6] loc.cit
[7] Union Budget, First Post, February 28, 2015.
[8] Dipanjan Roy Chaudhury, Make in India: Israeli defence minister Moshe Ya’alon meets
PM Narendra Modi, promises technological support, The Economic Times, 20 Feb,
2015
[9] PTI, Turkey wants to be part of 'Make in India' drive, The Economic Times, 20 Feb, 2015.
[10] PTI, Make in India to Use Technology for Industrial Growth, January 21, 2015.
[11] Rahul Singh, op.cit.
[12] Archana Tiwari-Nayudu, Indian SME rises up to PM’s call for ‘Make in India’,
September 18, 2014 available at www.mmtonline.in/indian-sme-rises-up-to-pms-call-
for-make-in-india/