Make in India Programme

The Make in India Programme is a flagship initiative launched by the Government of India in September 2014 with the aim of transforming India into a global manufacturing hub. Conceived as part of the country’s broader economic reform agenda, the programme seeks to encourage both domestic and foreign companies to manufacture their products in India, thereby boosting employment, fostering innovation, enhancing skill development, and promoting sustainable economic growth. It represents a major shift in India’s industrial policy framework, moving from a service-led growth model towards manufacturing-led development.

Background and Context

Prior to the launch of Make in India, India’s economic growth was largely driven by the services sector, while the manufacturing sector lagged behind, contributing around 15–16% to the national Gross Domestic Product (GDP). In contrast, manufacturing sectors in comparable emerging economies such as China and South Korea played a much more dominant role in economic growth and employment creation.
The Government, recognising the potential of manufacturing to absorb the large and growing workforce, sought to revitalise the industrial base through targeted policy interventions. The Make in India initiative, launched by Prime Minister Narendra Modi on 25 September 2014, aimed to position India as a competitive destination for global manufacturing investment.
The programme was designed in response to key challenges such as slow industrial growth, infrastructural constraints, regulatory bottlenecks, and a complex investment climate that had previously deterred investors.

Objectives of the Programme

The Make in India initiative was built around several broad objectives:

• Increase the share of manufacturing in GDP from about 16% to 25%.
• Create 100 million additional manufacturing jobs by 2025.
• Promote innovation and research through collaboration between industry and academia.
• Enhance skill development to create a competent and employable workforce.
• Facilitate investment by improving the ease of doing business and simplifying regulatory procedures.
• Develop world-class infrastructure such as industrial corridors, smart cities, and logistics networks.
• Encourage sustainable development through environmentally responsible manufacturing.

Focus Sectors

The initiative initially identified 25 priority sectors that offered significant potential for growth, employment, and global competitiveness. These included:

1. Automobiles and Auto Components
2. Aviation
3. Biotechnology
4. Chemicals
5. Construction
6. Defence Manufacturing
7. Electrical Machinery
8. Electronic Systems
9. Food Processing
10. Information Technology and BPM
11. Leather and Footwear
12. Media and Entertainment
13. Mining
14. Oil and Gas
15. Pharmaceuticals
16. Ports and Shipping
17. Railways
18. Renewable Energy
19. Roads and Highways
20. Space
21. Textiles and Garments
22. Thermal Power
23. Tourism and Hospitality
24. Wellness Sector
25. Capital Goods

Each sector was supported by tailored policy measures, infrastructure plans, and fiscal incentives to attract both domestic and foreign investment.

Policy Framework and Implementation Mechanisms

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, serves as the nodal agency for coordinating the Make in India initiative. The policy framework focuses on four key pillars:

1. New Processes:Simplification and rationalisation of rules and regulations, digitisation of approvals, and streamlining of procedures to improve the Ease of Doing Business. India’s ranking in the World Bank’s Ease of Doing Business Index improved remarkably from 142 in 2014 to 63 in 2020 as a result of these reforms.
2. New Infrastructure:Development of industrial corridors (such as the Delhi-Mumbai Industrial Corridor and Chennai-Bengaluru Industrial Corridor), smart cities, and logistics networks to provide integrated industrial ecosystems.
3. New Sectors:Opening up previously restricted sectors such as defence, railways, and insurance to greater private and foreign participation.
4. New Mindset:A shift from regulatory control to facilitation, making the government a partner rather than a mere regulator in the industrialisation process.

Foreign Direct Investment (FDI) Reforms

The Make in India initiative placed strong emphasis on liberalising the FDI regime to attract global investors. The government introduced sweeping reforms, including:

• Raising FDI limits in defence, insurance, railways, and construction sectors.
• Allowing 100% FDI under the automatic route in most sectors.
• Establishing the Foreign Investment Facilitation Portal (FIFP) for single-window clearance.

As a result, India witnessed record FDI inflows, reaching over USD 84 billion in 2021–22, marking a significant rise compared to pre-2014 levels.

Infrastructure and Industrial Corridors

Infrastructure development forms the backbone of Make in India. The programme includes several flagship projects to modernise logistics and industrial capacity:

• Delhi–Mumbai Industrial Corridor (DMIC): Integrating smart cities, high-speed freight corridors, and power infrastructure.
• Sagarmala Project: Promoting port-led development and coastal industrialisation.
• Bharatmala Project: Enhancing road connectivity and freight corridors.
• Dedicated Freight Corridors (DFC): Designed to improve rail-based goods transport efficiency.

These initiatives collectively aim to reduce logistics costs, improve connectivity, and enhance industrial competitiveness.

Achievements and Progress

Since its inception, Make in India has contributed significantly to India’s industrial and investment landscape:

• Record FDI inflows: India became one of the top global destinations for FDI, with cumulative inflows exceeding USD 500 billion between 2014 and 2022.
• Growth in key sectors: Substantial expansion has occurred in electronics, automobile, and renewable energy sectors. For instance, India has become the world’s second-largest mobile phone manufacturer.
• Boost to employment and skill development: Various skill development missions, such as the Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana (PMKVY), have been aligned with Make in India goals.
• Ease of Doing Business reforms: Simplified company registration, GST implementation, and digitised clearance systems have enhanced investor confidence.
• Defence manufacturing growth: Indigenous production of fighter aircraft, missiles, and naval systems has increased under the Aatmanirbhar Bharat framework.

Challenges and Criticisms

Despite its notable achievements, the Make in India initiative faces several persistent challenges:

• Infrastructure bottlenecks: Power supply, logistics inefficiencies, and land acquisition hurdles remain major constraints.
• Skill mismatch: A gap exists between industrial requirements and workforce skills, affecting productivity.
• Regulatory complexity: Although simplified, compliance requirements across states can still deter investors.
• Slow manufacturing growth: Despite policy support, the manufacturing sector’s share in GDP has hovered around 17–18%, short of the 25% target.
• Global competition: Other emerging economies offer more cost-competitive and business-friendly environments.

Critics also argue that the focus on foreign investment has not been adequately complemented by domestic industrial capacity-building in micro, small, and medium enterprises (MSMEs).

Integration with Other National Programmes

The Make in India programme functions in synergy with several other government initiatives, including:

• Digital India: To promote technological innovation and digital infrastructure.
• Skill India: To train and upskill India’s workforce for industrial employment.
• Startup India: To encourage entrepreneurship and innovation-driven manufacturing.
• Smart Cities Mission: To create modern urban infrastructure supportive of industrial growth.
• Aatmanirbhar Bharat Abhiyan (Self-Reliant India Mission): Strengthening domestic manufacturing capabilities and reducing dependence on imports.

These complementary programmes together aim to create an integrated ecosystem for manufacturing, innovation, and sustainable economic growth.

Significance and Future Outlook

The Make in India initiative holds immense strategic and economic significance for the country. It seeks to establish India as a global manufacturing and innovation hub, reduce import dependence, and enhance export competitiveness. By fostering industrialisation, it aims to generate large-scale employment and drive inclusive growth across regions.