India's rise as a global economic powerhouse is a story fueled by innovation, infrastructure development, and a skilled workforce. The government has played a crucial role in this journey by implementing various schemes that target specific sectors and empower its citizens.  These central Indian government schemes are designed to boost various sectors of the economy, enhance infrastructure, and improve the overall quality of life for citizens.

1. Make in India (2014)

This flagship program aims to transform India into a global manufacturing hub. It incentivizes foreign and domestic companies to set up base in India by offering tax benefits, streamlined procedures, and infrastructure support. Make in India has led to a significant increase in Foreign Direct Investment (FDI) and boosted manufacturing in sectors like automobiles, electronics, and textiles. However, challenges remain in areas like skill development and ease of doing business.

Key features:

• Simplification of business processes and regulations
• Development of industrial corridors and smart cities
• Focus on 25 key sectors, including automobile, electronics, and pharmaceuticals
• Promotion of skill development and innovation

Impact on the economy:

The Make in India campaign has contributed to increased foreign direct investment (FDI) inflows and improved India's ranking in the World Bank's Ease of Doing Business index. According to the Department for Promotion of Industry and Internal Trade, FDI equity inflows in India stood at US$ 58.77 billion in 2021-22, showcasing the program's success in attracting foreign investment.

The initiative has also led to the establishment of numerous manufacturing units across the country, creating employment opportunities and boosting domestic production. For example, the mobile phone manufacturing sector has seen significant growth, with India becoming the second-largest mobile phone manufacturer globally.

2. Production Linked Incentive (PLI) Scheme (2020)

This scheme aims to attract investments in strategic sectors like automobiles, electronics, pharmaceuticals, and telecom. The government provides financial incentives based on incremental sales of manufactured goods in India. PLI aims to not only boost domestic manufacturing but also create jobs, reduce reliance on imports, and promote technological advancements. The scheme is still in its early stages, but it has the potential to be a game-changer for specific industries.

Key features:

• Covers 14 key sectors, including electronics, pharmaceuticals, and automotive
• Provides financial incentives for incremental sales of goods manufactured in India
• Encourages both domestic and foreign companies to set up or expand manufacturing facilities
• Focus on reducing import dependency and promoting exports

Impact on the economy:

The PLI scheme has been instrumental in attracting investments and boosting manufacturing in various sectors. For instance, in the electronics sector, major global players like Apple and Samsung have increased their production capacities in India. The scheme is expected to generate approximately US$ 520 billion worth of production in the next five years and create millions of jobs across sectors.

According to government estimates, the PLI scheme is projected to bring in investments worth ₹7.76 lakh crore and incrementally generate revenues of ₹42.88 lakh crore over five years. This initiative is crucial for India's aspirations to become a US$ 5 trillion economy by 2025.

3. PM Gati Shakti National Master Plan (NMP) (2021)

Launched in October 2021, the PM Gati Shakti National Master Plan is a digital platform that aims to bring 16 Ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects.

Key features:

• Comprehensive infrastructure planning and development
• Integration of various modes of transportation
• Focus on last-mile connectivity
• Use of technology for project monitoring and implementation

Impact on the economy:

The Gati Shakti NMP is expected to significantly improve India's logistics efficiency and reduce transportation costs. By promoting multimodal connectivity and seamless movement of goods and people, the plan aims to enhance India's global competitiveness.

The initiative is projected to help India achieve its target of becoming a US$ 5 trillion economy by improving infrastructure planning and execution. It is expected to create numerous job opportunities in construction, logistics, and related sectors. While it's still in its early stages, the NMP has the potential to revolutionize India's infrastructure landscape and boost economic growth.

4. Digital India Campaign (2015)

This flagship initiative aims to transform India into a digitally empowered society. It focuses on providing affordable internet access to all, promoting digital literacy, and encouraging the use of technology in governance and service delivery. Digital India has led to a surge in internet users, e-commerce platforms, and digital financial services. It has also empowered citizens by providing easier access to government services, education, and healthcare. However, addressing the digital divide and ensuring cybersecurity remain crucial aspects.

Impact on the economy:

The Digital India campaign has played a crucial role in driving India's digital transformation. It has led to increased internet penetration, growth in digital payments, and improved access to government services.

Some notable achievements include:

• The number of internet subscribers in India increased from 302 million in 2015 to over 825 million in 2021.
• Digital payments have seen exponential growth, with UPI transactions crossing 7 billion in volume and ₹12.82 trillion in value in October 2022.
• The Jan Dhan-Aadhaar-Mobile (JAM) trinity has enabled direct benefit transfers, reducing leakages and improving efficiency in government welfare schemes.

The initiative has also fostered innovation and entrepreneurship in the tech sector, contributing to the growth of India's startup ecosystem. As of 2022, India is home to over 100 unicorns (startups valued at over US$ 1 billion), many of which are in the digital and tech space.

5. National Skill Development Mission (NSDM) (2015)

Recognizing the importance of a skilled workforce for economic growth, NSDM aims to provide industry-relevant skills training to youth across India. It focuses on creating a robust skill development ecosystem by collaborating with private companies, vocational training institutes, and universities. NSDM has played a vital role in bridging the skill gap in various sectors, making Indian workers more employable and contributing to increased productivity.

Key features:

• Standardization of training programs and certification
• Promotion of apprenticeship programs
• Focus on both formal and informal sectors
• Emphasis on industry-relevant skill development

Impact on the economy:

The NSDM has played a crucial role in addressing the skills gap in the Indian workforce, making it more employable and productive. Since its inception, millions of individuals have been trained under various skill development programs.

According to the Ministry of Skill Development and Entrepreneurship, over 1.3 crore candidates were trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) between 2016 and 2022. This initiative has not only improved employability but also supported the growth of key sectors by providing a skilled workforce.

The mission has also promoted entrepreneurship, contributing to job creation and economic growth. By aligning skill development with industry needs, it has helped improve productivity across sectors.

Beyond the Top 5: Schemes Empowering Citizens

While the above five schemes have significantly boosted the Indian economy, several other initiatives have also played a crucial role in improving the quality of life for citizens and fostering economic growth. Some of these schemes include:

1. Pradhan Mantri Jan Dhan Yojna (PMJDY) (2014): This financial inclusion scheme aims to provide basic banking services to all citizens, particularly those in rural and unbanked areas. PMJDY offers zero-balance savings accounts, RuPay debit cards, and overdraft facilities. It has empowered millions by facilitating access to formal banking channels, promoting financial literacy, and enabling participation in the digital economy.

2. Pradhan Mantri Ujjwala Yojana (PMUY) (2016): This social welfare scheme aims to provide clean and affordable cooking fuel to underprivileged families by offering LPG connections at subsidized rates. PMUY has significantly improved the health and well-being of millions, particularly women, by reducing indoor air pollution caused by traditional cooking methods.

3. Pradhan Mantri Mudra Yojana (PMMY) (2015): This micro-financing scheme provides loans to micro and small enterprises (MSMEs) for setting up or expanding their businesses. PMMY caters to various loan categories, ensuring financial inclusion for small entrepreneurs. It has empowered millions by fostering self-employment, generating jobs, and contributing to the growth of the MSME sector, a crucial engine of the Indian economy.

4. Startup India : Launched in 2016, this initiative aims to build a strong ecosystem for nurturing innovation and startups in the country. It has contributed to the growth of India's startup ecosystem, making it the third-largest globally.

5. Swachh Bharat Abhiyan : This cleanliness campaign, launched in 2014, has improved sanitation facilities across India. Besides its social impact, it has contributed to public health and tourism, indirectly benefiting the economy.

6. Ayushman Bharat : This health insurance scheme, launched in 2018, aims to provide coverage of ₹5 lakh per family per year for secondary and tertiary care hospitalization. It has significantly reduced out-of-pocket healthcare expenses for millions of Indians.

Conclusion

The central Indian government schemes have played a pivotal role in driving economic growth, attracting investments, and improving the quality of life for citizens. Schemes like Make in India, PLI, PM Gati Shakti NMP, Digital India, and NSDM have targeted key areas such as manufacturing, infrastructure, digital transformation, and skill development.

These programs have not only boosted specific sectors but have also created a ripple effect across the economy. They have attracted foreign investment, created jobs, improved productivity, and enhanced India's global competitiveness.

Additionally, schemes focused on financial inclusion, healthcare, housing, and sanitation have contributed to social welfare and indirectly supported economic growth by improving human capital and quality of life.

As India continues its journey towards becoming a US$ 5 trillion economy, these initiatives will play a crucial role in shaping the country's economic landscape. However, continuous evaluation, adaptation, and effective implementation of these schemes will be key to realizing their full potential and ensuring sustainable, inclusive growth for all Indians.