Make in India Scheme

1. Introduction: Make in India Programme

The Make in India Scheme was launched by the Government of India in September 2014 with the objective of transforming India into a global hub for manufacturing and investment. The Make in India Initiative is led by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. It invites domestic and foreign companies to manufacture products in India, strengthen industrial capacity, and integrate Indian industries with global value chains. The Make in India Programme also focuses on improving the ease of doing business, simplifying regulations, and promoting innovation and entrepreneurship in the country.

India’s manufacturing sector currently contributes around 16–17% of the country’s GDP, and the government aims to increase this share to about 25% in the long term. Since the launch of the initiative, India has witnessed a steady rise in Foreign Direct Investment (FDI) inflows, reaching a record USD 83.6 billion in 2021–22. The programme covers 27 key sectors, including automobiles, electronics, defence manufacturing, pharmaceuticals, textiles, renewable energy, and infrastructure. Through these efforts, the Make in India Scheme seeks to boost industrial growth, generate large-scale employment, and strengthen India’s position in global manufacturing.

2. Objectives of the Make in India Initiative

Make in India Objectives focus on transforming India into a major manufacturing hub, increasing industrial growth, generating employment and attracting investment.

Increase manufacturing growth rate

• The initiative aims to raise the growth rate of the manufacturing sector to around 12–14% per year.
• Higher industrial growth will help India emerge as a major global manufacturing hub.

Increase manufacturing share in GDP

• The programme seeks to increase the share of manufacturing in India’s GDP from about 16–17% to nearly 25%.
• Expanding the manufacturing base is essential for achieving long-term economic growth and industrialisation.

Generate large-scale employment

• The initiative aims to create around 100 million additional jobs, particularly for India’s young workforce.
• Growth of manufacturing will also generate indirect employment in logistics, services, and supply chains.

Attract foreign investment

• The Make in India Initiative encourages Foreign Direct Investment (FDI) by offering liberal investment policies and simplified regulations.
• Most sectors are now open to FDI under the automatic route, making India an attractive destination for global investors.

Promote export-led industrial growth

• The programme focuses on strengthening export-oriented manufacturing sectors.
• Increased exports will improve foreign exchange earnings and global competitiveness of Indian products.

These Make in India Objectives collectively seek to strengthen India’s manufacturing base, create employment and integrate Indian industries with global value chains.

3. Four Pillars of Make in India

• New Processes: This pillar focuses on improving the Ease of Doing Business in India by simplifying regulations and reducing bureaucratic hurdles. The government has taken several steps to de-license and de-regulate industries, allowing businesses to operate with fewer restrictions throughout the life cycle of a company. Reforms such as online approvals, faster clearances, and simplified compliance procedures aim to encourage entrepreneurship, investment, and industrial expansion.
• New Infrastructure: The Make in India Scheme emphasises the development of modern industrial infrastructure to support manufacturing growth. This includes the creation of industrial corridors, smart cities, logistics parks, and improved transportation networks. Strong infrastructure helps reduce production and logistics costs, improves connectivity between industrial centres and ports, and supports the expansion of manufacturing activities.
• New Sectors: The Make in India Programme has identified 27 priority sectors across manufacturing, infrastructure, and services to promote industrial development. These sectors include automobiles, electronics, defence manufacturing, pharmaceuticals, textiles, renewable energy, aviation, and information technology. Detailed sector-specific information and investment opportunities are provided to attract both domestic and international investors.
• New Mindset: This pillar represents a shift in the role of the government from being a regulator to a facilitator of economic growth. The government aims to work as a partner with industries by providing policy support, investment facilitation, and a transparent regulatory environment. This change in approach is intended to build greater trust between the government and the private sector, encouraging long-term industrial investment.

4. Outcomes and Achievements of Make in India

Growth in Foreign Direct Investment (FDI)

• Since the launch of Make in India in 2014, India has witnessed a significant increase in Foreign Direct Investment (FDI) inflows due to liberal investment policies and reforms.
• FDI inflows increased from USD 45.15 billion in 2014–15 to a record USD 83.6 billion in 2021–22, making India one of the leading global investment destinations.

Production Linked Incentive (PLI) Scheme

• The government introduced the Production Linked Incentive (PLI) scheme in 2020–21 to strengthen domestic manufacturing.
• The scheme covers 14 key manufacturing sectors, including electronics, pharmaceuticals, automobiles, telecom equipment, and solar modules to boost production and exports.

Improvement in Ease of Doing Business

• Several reforms have been implemented to simplify business regulations, licensing procedures, and taxation systems.
• These reforms aim to create a business-friendly environment and attract global manufacturing companies to invest in India.

Expansion of manufacturing sectors

• Sectors such as electronics manufacturing, mobile phone production, defence manufacturing, and renewable energy equipment have expanded significantly under the initiative.
• India has also emerged as one of the largest mobile phone manufacturing hubs in the world, reflecting the impact of the Make in India Scheme.

5. Related Initiatives Supporting Make in India

National Single Window System (NSWS)

• The National Single Window System has been introduced to provide a single digital platform for business approvals and clearances.
• It helps investors obtain permissions from multiple central and state government departments through one online portal, improving the ease of doing business.

PM Gati Shakti Programme

• The PM Gati Shakti National Master Plan, launched in 2021, aims to develop integrated infrastructure and logistics networks across the country.
• It improves connectivity between industrial corridors, ports, highways, railways, and airports, which supports manufacturing and industrial growth.

One District One Product (ODOP)

• The One District One Product (ODOP) initiative promotes specialised products from each district of India.
• The scheme aims to support local industries, traditional crafts, and small-scale manufacturing and link them with national and global markets.

Semiconductor Mission

• Recognising the importance of semiconductors in modern industries, the Government of India launched a USD 10 billion incentive programme to build a semiconductor manufacturing and design ecosystem in the country.
• The initiative aims to strengthen India’s role in electronics manufacturing and global supply chains.

These supporting initiatives complement the Make in India Programme by improving infrastructure, investment facilitation, logistics, local manufacturing and technological capabilities. They collectively strengthen the broader Make in India Initiative and support the Make in India Objectives of industrial expansion and global competitiveness.

6. Present Status of the Make in India Scheme

The Make in India Scheme continues to remain an important pillar of India’s industrial and manufacturing strategy. The government is focusing on strengthening domestic manufacturing, attracting investment, promoting exports and integrating Indian industries with global value chains.

• Manufacturing expansion – The initiative continues to support the expansion of manufacturing across sectors such as electronics, automobiles, pharmaceuticals, defence, textiles and renewable energy.
• Rising investment – Liberalised FDI policies and improved investment facilitation have helped India remain an important destination for global investors.
• PLI-led manufacturing growth – The Production Linked Incentive (PLI) schemes have become an important instrument for expanding domestic production, attracting investment and promoting exports.
• Focus on self-reliance – The initiative has gained greater importance under the broader Atmanirbhar Bharat approach, particularly in strategically important sectors such as electronics, defence and semiconductors.
• Integration with global value chains – India is increasingly focusing on becoming a reliable manufacturing and export base by improving infrastructure, logistics, technology and the ease of doing business.

The present phase of the Make in India Initiative therefore focuses not only on increasing manufacturing capacity but also on improving competitiveness, technological capabilities and India’s participation in global value chains. These developments continue to advance the Make in India Objectives of investment, employment, exports and industrial growth.

7. Way Forward

• Strengthen infrastructure and logistics – Develop world-class industrial corridors, logistics parks, ports, power infrastructure and reliable transport networks to reduce the cost of manufacturing and improve competitiveness.
• Promote MSME integration – Small and medium enterprises should be better integrated into domestic and global value chains through easier credit, technology support, skill development and market access.
• Increase investment in R&D and innovation – Greater investment in research, advanced manufacturing technologies, artificial intelligence, automation and skill development is necessary to move from low-value to high-value manufacturing.
• Improve ease of doing business – Further simplify regulations, reduce compliance burdens and ensure faster approvals through digital platforms such as the National Single Window System.
• Focus on export competitiveness – Manufacturing policies should increasingly focus on quality, cost competitiveness and global standards so that Indian products can capture larger international markets.
• Develop a skilled workforce – Industry-oriented vocational education and skill development should be strengthened to meet the requirements of modern manufacturing.
• Ensure policy stability – Consistent and predictable industrial policies can improve investor confidence and encourage long-term domestic and foreign investment.
• Promote green manufacturing – India should encourage energy-efficient production, renewable energy use, recycling and cleaner technologies to achieve manufacturing growth without compromising environmental sustainability.

A stronger focus on technology, infrastructure, skills, MSMEs and export competitiveness can help the Make in India Scheme move from an investment-attraction programme towards a globally competitive manufacturing strategy.

8. Conclusion

The Make in India Scheme has emerged as an important initiative for strengthening India’s manufacturing base, attracting investment and generating employment. Its success depends on improving infrastructure, skills, technology, MSMEs and export competitiveness. With stable policies and greater focus on innovation and green manufacturing, the Make in India Programme can help India become a globally competitive manufacturing hub.

BPSC Mains Practice Question

“Make in India has shifted India’s industrial policy towards investment promotion, domestic manufacturing and integration with global value chains.” Critically examine the major achievements and challenges of the Make in India Scheme and suggest measures to make India a globally competitive manufacturing hub.

Learn More: Make in India

The Make in India Scheme aims to promote manufacturing, attract investment, generate employment and strengthen India’s position in global value chains. Learn more about Make in India through the official Government of India portal.