Achievements of Make in India

  Sansad TV   Mar 7, 2025  Add to Reading List

The Make in India Initiative: A Decade of Transformation

The Make in India initiative, which was launched on September 25, 2014, has now completed its 10-year journey, evolving into a key economic strategy aimed at reviving India's manufacturing sector and overall economic growth. Initially introduced as a response to slow economic progress, the initiative has played a crucial role in reshaping India's industrial landscape.

What is the Make in India Initiative?

Purpose and Goals: The core objective of the Make in India initiative is to transform India into a global manufacturing hub. This involves attracting foreign investments, fostering innovation, and developing world-class infrastructure to support industrial growth. A critical aspect of the initiative is promoting the "Vocal for Local" concept, which seeks to reduce India's dependency on imported goods. Furthermore, the program aims to create job opportunities for the country’s young workforce, driving economic prosperity and self-reliance.

Phase 2: Make in India 2.0: The initiative’s second phase, Make in India 2.0, which covers 27 key sectors, is an extension of the original vision. The ongoing phase continues to fortify India’s position as a dominant player in global manufacturing.

Key Sectors Targeted by the Initiative

The initiative spans two major sectors: manufacturing and services.

Manufacturing Sectors:

  • Aerospace & Defense
  • Automotive & Auto Components
  • Pharmaceuticals & Medical Devices
  • Biotechnology
  • Capital Goods
  • Textiles & Apparel
  • Chemicals & Petrochemicals
  • Electronics & Semiconductor Design
  • Leather & Footwear
  • Food Processing
  • Gems & Jewelry
  • Shipping, Railways, and Renewable Energy

Service Sectors:

  • IT & IT-enabled Services (ITeS)
  • Tourism & Hospitality
  • Medical Value Travel
  • Transport & Logistics
  • Financial, Legal & Accounting Services
  • Environmental Services
  • Education Services
  • Audio-Visual Services

The Four Pillars of the Make in India Initiative

  1. New Processes: The government has reformed regulations to make the business environment more conducive by minimizing bureaucratic delays, thereby simplifying processes for startups and established businesses.

  2. New Infrastructure: The initiative emphasizes developing industrial corridors, smart cities, and cutting-edge technology infrastructure to boost innovation, ease of registration, and protection of intellectual property rights.

  3. New Sectors: To further open up various sectors like defense, insurance, and railways, Foreign Direct Investment (FDI) policies have been liberalized, driving both domestic and international investments.

  4. New Mindset: The government has transitioned from being a regulator to a facilitator, working in collaboration with industries to create a business-friendly environment that fosters growth.

Major Programs and Schemes Under Make in India

  1. Production-Linked Incentive (PLI) Schemes: This program allocates approximately INR 1.97 lakh crore (USD 26 billion) to incentivize manufacturing across 14 key sectors, including mobile phones and medical devices. By mid-2024, the scheme has attracted investments totaling INR 1.23 lakh crore, generating 8 lakh jobs.

  2. PM GatiShakti: Launched in 2021, PM GatiShakti focuses on integrated infrastructure development across railways, roads, ports, airports, and mass transit. It aims to help India achieve its goal of becoming a USD 5 trillion economy by 2025.

  3. Semicon India Program: With a budget of INR 76,000 crore, the Semicon India program aims to establish a sustainable semiconductor ecosystem, with significant investments such as Micron’s INR 22,000 crore project in semiconductor manufacturing.

  4. National Logistics Policy (NLP): This policy, launched in 2022, is focused on improving India’s logistics infrastructure to reduce costs and improve efficiency, complementing PM GatiShakti’s efforts.

  5. National Industrial Corridor Development Program: This initiative aims to integrate industrial corridors with urban planning, promoting smart cities and hubs for manufacturing. It has approved projects worth INR 28,602 crore, positioning India as a global manufacturing destination.

  6. Startup India Initiative: Since 2016, this program has created an ecosystem conducive to entrepreneurship, resulting in over 148,931 startups and 1.55 million jobs.

  7. Tax Reforms and GST: The Goods and Services Tax (GST) introduced in 2017 unified India's tax structure, reducing compliance costs and boosting manufacturing competitiveness.

  8. Unified Payments Interface (UPI): India’s UPI has become a global leader in digital payments, handling a significant portion of the world’s real-time transactions, which strengthens the digital economy.

  9. Ease of Doing Business: India improved its ranking from 142nd in 2014 to 63rd in 2019, reflecting regulatory simplifications that have boosted investor confidence.

  10. Foreign Direct Investment (FDI): FDI has surged, with inflows growing from USD 45.14 billion in 2014-15 to USD 84.83 billion in 2021-22. As of March 2024, FDI totals USD 667.41 billion.

Major Achievements of Make in India

  1. Healthcare Leadership: India became a global leader in producing and supplying COVID-19 vaccines, accounting for 60% of global demand.

  2. Railways: The indigenously developed Vande Bharat trains highlight India’s growing capabilities in local manufacturing.

  3. Defense: The commissioning of INS Vikrant, India’s first domestically-built aircraft carrier, marks a significant achievement in defense self-reliance.

  4. Electronics: India is now the second-largest mobile phone manufacturer, with the electronics industry reaching a market size of USD 155 billion in 2023.

  5. Merchandise Exports: India’s merchandise exports reached USD 437.06 billion in FY 2023-24, reflecting the country’s increasing global trade presence.

  6. Textiles & Employment: The textile sector has generated around 145 million jobs, making it a crucial pillar of India’s employment landscape.

  7. Toys & Sports Goods: India produces over 400 million toys annually and is a significant exporter of goods like cricket bats made from Kashmir willow.

Challenges Faced by the Make in India Initiative

  1. Infrastructure Deficiencies: While there have been improvements, infrastructure challenges still exist, particularly in transportation and logistics. The cost of logistics in India, which is around 14%-18% of GDP, remains higher than in developed countries like Germany or the US.

  2. Regulatory Delays: Despite efforts to ease doing business, bureaucratic delays and outdated land acquisition processes continue to hinder project execution.

  3. Skill Shortages: A mismatch between the skills available in India’s workforce and the skills needed in advanced manufacturing sectors like electronics and biotechnology poses a significant challenge.

  4. Dependency on Imports: India remains heavily reliant on imports for critical components, such as semiconductor chips for electronics manufacturing, which limits the potential for self-reliant growth.

The Way Forward for Make in India

  1. Infrastructure Investment: Increasing both public and private sector investment in transportation and logistics infrastructure is essential to reducing costs and improving efficiency. Public-Private Partnerships (PPPs) can help accelerate such projects.

  2. Regulatory Reforms: Further simplification of business regulations and faster approvals are necessary. A single-window clearance system can help minimize bureaucratic delays.

  3. Skill Development: Industry-specific skill training programs should be expanded, with a focus on advanced technologies. Strengthening vocational education can help bridge the skill gap in manufacturing sectors.

  4. Local Sourcing & Supply Chains: Policies that incentivize local sourcing of components and the creation of integrated domestic supply chains will reduce India’s dependency on imports and boost the growth of local industries.

By addressing these challenges and building on the successes of the past decade, the Make in India initiative is poised to continue its journey toward making India a global manufacturing leader and a stronger economy.