Launched on September 25, 2014, the Make in India initiative has completed ten years as a pivotal strategy to rejuvenate the Indian economy. Introduced to address sluggish economic growth, this program has positioned India as a global manufacturing hub by fostering investment, innovation, and world-class infrastructure.
Understanding the Make in India Initiative
Objectives & Goals
- Establish India as a leading manufacturing destination by attracting domestic and foreign investments.
- Strengthen industrial capabilities while promoting the Vocal for Local campaign to reduce reliance on imports.
- Generate employment opportunities, leveraging India's youthful workforce for economic growth and self-reliance.
Evolution: Make in India 2.0
The second phase of
Make in India expands its scope across 27 key sectors, reinforcing India's standing in the global manufacturing ecosystem.
These sectors are broadly classified into:Manufacturing Sectors- Aerospace & Defense
- Automotive & Auto Components
- Pharmaceuticals & Medical Devices
- Biotechnology
- Capital Goods
- Textile & Apparel
- Chemicals & Petrochemicals
- Electronics & System Design
- Leather & Footwear
- Food Processing
- Gems & Jewelry
- Renewable Energy, Shipping, Railways, & Construction
Service Sectors- IT & IT-enabled Services (ITeS)
- Tourism & Hospitality
- Medical Value Travel
- Transport & Logistics
- Financial, Legal & Accounting Services
- Environmental & Communication Services
- Construction & Engineering Services
- Education Services
The Four Pillars of Make in India- New Processes: Simplifying regulations, cutting red tape, and enhancing ease of doing business.
- New Infrastructure: Developing industrial corridors, smart cities, and tech-driven frameworks to foster innovation.
- New Sectors: Liberalizing Foreign Direct Investment (FDI) in key industries such as defense, insurance, and medical devices.
- New Mindset: Shifting from regulatory control to facilitation, encouraging collaboration between government and industries.
Key Programs & Schemes Driving the Initiative- Production-Linked Incentive (PLI) Schemes: With an investment of ₹1.97 lakh crore (~$26 billion), PLI schemes boost manufacturing in 14 core sectors, including electronics and automotive industries. As of July 2024, this has generated ₹1.23 lakh crore in investments and 8 lakh jobs.
- PM GatiShakti: Launched in 2021 to enhance multimodal connectivity and infrastructure, supporting India's vision of a $5 trillion economy.
- Semicon India Program: A ₹76,000 crore initiative fostering semiconductor manufacturing, with notable investments like Micron’s ₹22,000 crore facility.
- National Logistics Policy (NLP): Aiming to reduce logistics costs and improve India’s global competitiveness.
- National Industrial Corridor Development Programme: Integrating industrial growth with urban development, with recent approvals worth ₹28,602 crore.
- Startup India Initiative: Since 2016, this has propelled the establishment of over 1.48 lakh startups, generating 15.5 lakh direct jobs.
- Tax Reforms & Digital Payments: The introduction of GST streamlined tax structures, while UPI emerged as a leader in digital transactions, handling 46% of the world's real-time payments.
- Ease of Doing Business: India climbed from 142nd (2014) to 63rd (2019) in global rankings, reflecting improved investor confidence.
- Record FDI Growth: FDI inflows surged from $45.14 billion in 2014-15 to $84.83 billion in 2021-22, with a cumulative total of $667.41 billion between 2014-2024.
Major Achievements of Make in India- Healthcare: India emerged as a key vaccine manufacturer, fulfilling 60% of global demand during the COVID-19 pandemic.
- Railways: Indigenous production of Vande Bharat trains showcases India’s engineering capabilities.
- Defense: The commissioning of INS Vikrant, India's first locally-built aircraft carrier, marks a milestone in self-reliance.
- Electronics: India is now the second-largest mobile phone producer, with an electronics market worth $155 billion in FY 2023.
- Exports: Merchandise exports reached $437.06 billion in FY 2023-24, cementing India’s role in global trade.
- Textiles & Employment: 14.5 crore jobs have been generated in the textile industry alone.
- Toy & Sports Goods: India manufactures 400 million toys annually, including the famous Kashmir willow cricket bats.
Challenges in Implementation
Infrastructure Deficiencies
Despite advancements, logistics costs remain high at 14-18% of GDP compared to 8-10% in developed economies like the US and Germany. Improved roads, railways, and ports are essential for seamless trade.
Regulatory Hurdles
Complex approval systems, bureaucratic delays, and land acquisition bottlenecks continue to slow down industrial expansion.
Skill Gaps
There is a mismatch between industry needs and workforce skills, particularly in high-tech sectors such as semiconductors and biotechnology.
Import Dependence
Key industries, including electronics manufacturing, still rely heavily on imports for essential components, limiting domestic production capabilities.
The Way Forward
Enhancing Infrastructure- Greater investment in logistics, transport, and utilities.
- Strengthening Public-Private Partnerships (PPPs) to accelerate infrastructure development.
Regulatory & Administrative Reforms- Implementing a single-window clearance system to streamline business approvals.
- Expanding digital governance to enhance transparency and efficiency.
Skill Development & Workforce Empowerment- Tailoring skill training programs to industry needs, with a focus on emerging technologies.
- Enhancing vocational training to meet the demands of the manufacturing sector.
Strengthening Domestic Supply Chains- Promoting local sourcing and incentivizing indigenous production.
- Developing integrated supply chains to reduce reliance on imported raw materials and components.
As
Make in India enters its second decade, sustained policy support, infrastructure enhancements, and innovation-driven growth will be critical in realizing India’s vision of becoming a global manufacturing powerhouse.
Launch your Graphy