Make in India

Make in India is a national initiative launched by the Government of India in September 2014 to encourage domestic manufacturing, attract foreign investment, and create employment. The programme aims to transform India into a global manufacturing hub by simplifying regulations, improving infrastructure, and offering incentives to both domestic and foreign companies.

What Is Make in India?

Make in India is a government campaign targeting 27 sectors ranging from automobiles and aerospace to electronics, pharmaceuticals, food processing, and renewable energy. The goal is to increase the manufacturing sector’s contribution to GDP from about 15% to 25% and create 100 million new jobs by 2025.

The initiative is built on four pillars:
1. New processes (ease of doing business)
2. New infrastructure (industrial corridors, smart cities)
3. New sectors (opening new areas to private and foreign investment)
4. New mindset (government as a facilitator, not a regulator)

Key Objectives

– Increase foreign direct investment (FDI) inflows
– Develop manufacturing infrastructure
– Improve the Ease of Doing Business ranking
– Develop skills through programmes like Skill India
– Promote innovation through the Startup India initiative
– Achieve self-reliance in defence production

Achievements and Impact

– India’s FDI inflows increased significantly after 2014
– India improved its Ease of Doing Business ranking considerably in global surveys
– Sectors like mobile phone manufacturing saw dramatic growth (India went from 2 to over 200 mobile manufacturing units between 2014 and 2019)
– The Production Linked Incentive (PLI) scheme, launched alongside Make in India, has attracted billions in new manufacturing investments

Criticism and Challenges

– Manufacturing GDP share has not yet reached the 25% target
– Infrastructure gaps remain in power, logistics, and connectivity
– Some sectors still face high regulatory burden
– Job creation in formal manufacturing has been slower than targeted

Practical Example

A global smartphone manufacturer sets up a production facility in India under the Make in India framework. It receives incentives under the PLI scheme, benefits from streamlined approvals through the single-window clearance system, and accesses India’s large skilled workforce. The facility creates 5,000 direct jobs and contributes to reducing India’s mobile phone import bill.

Key Takeaways

– Make in India aims to boost domestic manufacturing, attract FDI, and create employment
– Targets 27 sectors including electronics, defence, automobiles, and pharmaceuticals
– Four pillars: new processes, infrastructure, sectors, and mindset
– Complemented by schemes like PLI, Startup India, and Skill India
– India’s mobile manufacturing growth is one of the most cited success stories of the initiative