Launched in 2014, the Make in India initiative was designed to transform India into a global manufacturing powerhouse. The goal was to shift from a predominantly service-led economy to a more balanced structure where manufacturing plays a central role. Key objectives included increasing the manufacturing sector’s GDP contribution to 25%, reducing import dependency, and creating employment. While the 2022 target for manufacturing’s GDP share was not fully realized, significant progress has been made.
Over the past decade, Make in India has driven substantial foreign investment in critical sectors such as electronics, automobiles, and renewable energy. It has also led to large-scale infrastructure development, enhanced ease of doing business, and policy reforms that facilitate industrial growth. Further, integrating Industry 4.0, smart manufacturing, and digitalization is positioning India as a competitive global manufacturing hub.
India attracted $667.41 billion in FDI during the Make in India years (between April 2014 and March 2024), with annual inflows reaching a record $84.83 billion in 2021-22. This capital has been directed toward industries such as electronics, pharmaceuticals, automotive, and renewable energy, bolstering both domestic production and export potential.
The initiative led to the development of industrial corridors, including the Delhi-Mumbai Industrial Corridor (DMIC) and multimodal logistics networks under PM GatiShakti. These infrastructure investments have streamlined logistics, reducing lead times and improving shopfloor automation.
From 2014 to 2019, India’s rank in the World Bank’s Ease of Doing Business Index improved from 142 to 63. The streamlining of processes, introduction of the Goods and Services Tax (GST), and labor law consolidation have created a more unified and business-friendly environment.
The PLI schemes, with an outlay of ₹1.97 lakh crore across 14 key sectors, have driven investment, advanced technological transformation, and improved manufacturing KPIs. As of July 2024, these initiatives have led to an investment of ₹1.23 lakh crore, generating approximately 800,000 jobs.
Recognizing the strategic importance of semiconductor manufacturing, India launched the India Semiconductor Mission with an investment of ₹76,000 crore. Several semiconductor fabrication and electronics system design and manufacturing (ESDM) projects have been approved, marking a critical step toward digital manufacturing self-reliance.
India has significantly advanced in aerospace and defense manufacturing, producing indigenous fighter jets, warships, and defense systems. Defense production hit ₹1.27 lakh crore in 2023-24, with exports reaching over 90 countries.
Sectors such as textiles, leather, and food processing have experienced expansion under Make in India, generating 14.5 crore jobs in textiles alone. India’s toy manufacturing sector has also grown, producing over 400 million units annually, demonstrating the initiative’s impact across both traditional and modern manufacturing segments.
The adoption of Industry 4.0 technologies, including AI, IoT, robotics, and digital twins, is accelerating responsive production systems. Smart manufacturing solutions, predictive maintenance, and connected manufacturing ecosystems are improving efficiency and quality across industrial operations.
India’s merchandise exports reached $437.06 billion in FY 2023-24, with strong performance in automotive components, chemicals, pharmaceuticals, and electronics. Emerging global demand for India-made medical devices and green energy components is expanding export markets.
The target of 25% GDP share from manufacturing remains unfulfilled. Current estimates place it around 17-18%, requiring continued policy interventions, investment in smart factories, and integration of shopfloor automation to enhance productivity.
Despite improvements in ease of doing business, land acquisition remains a bottleneck, particularly for large-scale industrial projects. Further streamlining of regulatory approvals and single-window clearances is necessary.
Automation and technological transformation are reshaping the nature of jobs in manufacturing. While Skill India has trained millions, additional efforts are needed to align workforce capabilities with digitalization, AI-driven production management, and connected manufacturing technologies.
Global supply chain disruptions have highlighted the need for domestic component manufacturing. Strengthening India’s role in global value chains will require sustained investments in responsive production systems, resilient logistics, and advanced materials research.
The next phase of Make in India must focus on AI-powered production management, digital twin technology, and end-to-end automation to drive efficiency and cost competitiveness. Investments in 5G-enabled smart factories and real-time predictive maintenance systems will be critical.
India is emerging as a leader in green hydrogen production, electric vehicle (EV) manufacturing, and renewable energy components. Policies supporting low-carbon manufacturing and circular economy principles will enhance India’s global positioning.
Negotiating bilateral trade agreements and reducing tariff barriers for high-value manufactured goods will open new export markets. Strengthening compliance with global quality and sustainability standards will further enhance India’s competitiveness.
A strong focus on R&D investments, patents, and high-value innovation will be essential for India to transition from a cost-driven to an innovation-led manufacturing hub. Strengthening intellectual property protections and innovation ecosystems will support this transformation.
A decade into its implementation, Make in India has significantly shaped the country’s manufacturing landscape. The initiative has driven large-scale FDI, technological transformation, and digitalization, positioning India as a key player in global manufacturing. While challenges remain in land acquisition, workforce development, and supply chain resilience, sustained policy reforms and investments in Industry 4.0, smart manufacturing, and connected production systems will define Make in India’s next phase.
To achieve its long-term vision, Make in India must evolve with a sharper focus on technology-driven productivity, green manufacturing, and global integration, ensuring that India remains a competitive, resilient, and innovation-led manufacturing powerhouse.
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