Table of Contents
WHAT IS MAKE IN INDIA
Make in India is a government initiative launched in September 2014 to transform India into a global hub for manufacturing, design, and innovation by boosting the manufacturing sector and creating jobs. The program seeks to achieve this by implementing policy directives that simplify regulatory processes, opening up key sectors to Foreign Direct Investment (FDI), and promoting programs like the Production Linked Incentive (PLI) Schemes and the National Single Window System (NSWS).
Key Pillars & Features
New Processes: Simplifying regulations and improving the ease of doing business to support entrepreneurship.
New Infrastructure: Developing industrial corridors, clusters, and smart cities.
FDI in Key Sectors: Opening up important sectors like defense, railways, and construction to Foreign Direct Investment.
Focus on Innovation: Fostering a culture of innovation and design.
Slogans: Incorporating the “Zero Defect Zero Effect” approach, ensuring products have no defects and no negative environmental impact.
Understanding what Make in India is naturally leads to the bigger question – why it was launched and what purpose it aims to serve.
WHY IT WAS LAUNCHED
Key reasons for launch are listed below,
Economic Growth & Self-Reliance: To shift India from a country dependent on imports to one that manufactures and sells its own products globally, boosting the economy and fostering self-reliance.
Job Creation: To create a massive number of new job opportunities by stimulating the manufacturing, design, and innovation sectors.
Attracting Investment: To attract both domestic and foreign investment by facilitating the establishment of new businesses and the expansion of existing ones in India.
Improving Infrastructure: To invest in and develop best-in-class infrastructure, including transportation, logistics, and utilities, to support a robust manufacturing ecosystem.
Fostering Innovation: To encourage innovation in design and manufacturing processes to produce high-quality products.
Reducing Red Tape: To simplify regulations and rationalize processes, making it easier for businesses to operate and grow in India.
Reducing Import Dependence: To cut down on India’s dependence on foreign goods, particularly in strategic sectors like defense, by promoting local production
MAKE IN INDIA: ACHIEVEMENTS
CHALLENGES
Despite its strong vision, Make in India has faced several challenges over the years.
Infrastructure Gaps: frankly India has always suffered with poor roads, ports, and power supply in some regions leading to slower manufacturing growth.
Complex Regulations & Bureaucracy: earlier India had multiple approvals and red tape that discouraged investors which needed change.
Global Competition: India faced strong competing with countries like China and Vietnam for investments.
Skilled Labor Shortage: India lacked adequately trained workforce for modern manufacturing.
Slow Adoption of Technology: Some industries struggled to modernize and innovate, keeping itself behind in the race of technology.
Land Acquisition Issues: Delays in acquiring land for factories affected projects.
Economic Slowdowns: Global crises like COVID-19 impacted manufacturing and Foreign Direct Investment.
MAKE IN INDIA IS A FAIL?
There is a growing debate over the effectiveness of the Make in India initiative. While it introduced significant reforms and attracted foreign investments, the policy has faced criticism for not achieving its ambitious goals.
Key Criticisms
Manufacturing Share Decline: Despite the goal to increase the manufacturing sector’s contribution to GDP, it has decreased from 16.7% in 2013–14 to 15.9% in 2023–24.
Job Losses: The manufacturing sector saw a reduction in employment from 5.1 crore in 2016–17 to 2.7 crore in 2020–21.
Ineffective Skill Development: A significant portion of small manufacturers reported that government skill schemes were ineffective, indicating a gap between policy intent and execution.
Underperformance of PLI Scheme: The Production-Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing, faced challenges such as delayed subsidy disbursements and unmet production targets, leading to its planned phase-out by mid-2026.
Infrastructure and Bureaucratic Hurdles: Persistent issues like inadequate infrastructure and complex regulatory processes have hindered the ease of doing business.
CONCLUSION / FUTURE GOALS
Looking ahead, Make in India aims to strengthen India’s position as a global manufacturing hub. The policy focuses on increasing the manufacturing sector’s contribution to GDP, creating millions of jobs, and promoting self-reliance through innovation and technology adoption. Key priorities include boosting sectors like electronics, renewable energy, defense manufacturing, and pharmaceuticals, while improving ease of doing business and modern infrastructure. By encouraging both domestic and foreign investments, Make in India envisions a sustainable, competitive, and globally recognized manufacturing ecosystem.
📌Author’s Note:
This blog is not just research — it’s a step in my journey toward working with global institutions like the IMF and World Bank.
Stay tuned and grow with me
