For years, India had a consumption story. Billion-plus people. Rising middle class. Untapped demand. But we lacked one thing—manufacturing muscle to meet that demand at home.
The result? We imported what we could have built. Paid for jobs abroad. Let factories grow in China, Vietnam, and Bangladesh while our own industrial zones stayed underutilized.
In 2014, the Government of India launched Make in India. It wasn’t a flashy announcement. It was a strategic reset.
Why Make in India Had to Happen
India was losing a war it hadn’t even signed up for—global manufacturing. The signs were clear:
Manufacturing’s share in GDP was stuck at 15–16%
Trade deficits were ballooning due to over-dependence on imports
Job creation was sluggish, especially for semi-skilled and skilled labor
States weren’t aligned on industrial growth as a national priority
There was no path to long-term economic stability without fixing this. We couldn’t depend forever on services and IT exports. We needed factories, not just software.
The Core Idea Behind Make in India
The Make in India initiative wasn’t just a policy. It was a national business development strategy. Its ambition was simple but powerful:
“Transform India into a global manufacturing hub by encouraging both multinational and domestic companies to manufacture their products in India.”
To make that happen, three fronts had to be tackled:
Ease of Doing Business
Infrastructure & Industrial Corridors
FDI and Global Partnerships
But what gave it teeth was the focus on 25 priority sectors—from automotive to electronics, defence to food processing, textiles to renewable energy.
This wasn’t vague. It was highly targeted.
The Big Bets That Paid Off
1. Manufacturing Became Central to Economic Policy
Earlier, manufacturing was someone else’s problem. Ministries operated in silos. Make in India brought focus and accountability. Policies were evaluated on how well they supported manufacturing.
Schemes like PLI (Production Linked Incentive), FAME (for electric mobility), and semiconductor missions were a natural extension of this shift.
2. FDI Got a Clear Signal
India had long flirted with FDI. But post-Make in India, the message to global companies was direct:
We want you to manufacture here, not just sell here.
Sectors like defence, construction, railways, and insurance saw FDI caps raised. Approvals got faster. States competed to woo investors.
This wasn’t just about foreign money—it was about foreign capacity being embedded into India’s industrial base.
3. States Became Execution Engines
Make in India wasn’t limited to Delhi. States were given center stage. Karnataka, Tamil Nadu, Maharashtra, Gujarat, and Telangana became aggressive in promoting themselves as manufacturing destinations.
States began building:
Plug-and-play industrial parks
Sector-specific export hubs
Single-window clearance systems
This decentralisation was a key unlock. India is too complex to be driven from the centre. States had to lead, and Make in India nudged them to.
Sector Spotlights: Where It’s Working
Electronics Manufacturing
Pre-Make in India, almost every mobile phone sold in India was imported. Today, India is the second-largest mobile phone manufacturer in the world.
Apple and Samsung have both scaled up large-scale assembly operations. Domestic players like Dixon, Lava, and Optiemus have found new relevance.
What drove this?
Clear focus on PLI for electronics
Duty rationalisation
Component ecosystem building
Defence Production
India was the world’s largest arms importer. Under Make in India, defence was opened up to private players and foreign OEMs—something that was taboo for decades.
Now, defence manufacturing is not only growing but being exported—drones, missile systems, naval platforms, bulletproof gear.
Startups are entering what used to be a DRDO-dominated space. That’s a mindset shift.
Auto and EV Sector
The auto industry was already strong, but Make in India pushed it into future-focused areas:
Electric vehicles
Battery manufacturing
EV components and charging infra
With the FAME scheme complementing Make in India, India now has one of the fastest-growing EV adoption markets globally—and the supply chain is following fast.
Key Enablers Behind the Scenes
1. Production Linked Incentive (PLI) Schemes
Make in India was the story. PLI was the business model.
With 14 sectors under PLI, companies were incentivised only when they produced and sold. No speculative subsidies. No gaming the system. Real output, real incentives.
This created confidence among manufacturers. It reduced risk and rewarded scale.
2. National Infrastructure Pipeline (NIP)
You can’t manufacture efficiently if you don’t have roads, ports, and power.
Under Make in India, infrastructure planning got sharper:
Industrial corridors like DMIC (Delhi-Mumbai)
Greenfield ports and airports
Smart logistics hubs
This improved time-to-market and cost-efficiency—two things manufacturers care deeply about.
3. Skill India Alignment
There’s no point in building factories if people can’t operate them.
Make in India was supported by Skill India—targeting vocational skills, machine handling, industrial safety, and advanced tech training. The goal: align worker skills with industry 4.0 needs.
What Still Needs Work
1. Import Dependency for Raw Materials
We’re assembling phones but still importing chips. We’re building cars but still dependent on battery-grade lithium. This weakens strategic manufacturing autonomy.
2. MSME Integration with Global Value Chains
Make in India has helped large firms scale. But MSMEs need easier credit, tech adoption, and export access. Without this, we’ll have islands of scale instead of a national network.
3. Land and Labour Reforms
Progress has been made, but inconsistently across states. Labour flexibility and industrial land banks remain patchy. Investors still hesitate in regions without clear regulatory frameworks.
Metrics That Matter
While Make in India isn’t a silver bullet, the numbers show progress:
FDI inflows into manufacturing have doubled since 2014
Mobile phone exports crossed ₹90,000 crore in 2023
Employment in organised manufacturing has grown, especially in electronics and auto
India’s rank in Ease of Doing Business jumped 79 places between 2014 and 2020
The momentum is real. But scale is the next challenge.
Future Trajectory: From Assembly Hub to IP Nation
The real test of Make in India isn’t just how much we produce—but what we produce.
It’s time to move from:
Assembly to full-stack production
OEM dependency to own-brand exports
Cost arbitrage to innovation-led manufacturing
For that, three things will define the next decade:
Design-led manufacturing (especially in electronics, medical devices, defence)
Advanced materials and deeptech integration
Green manufacturing and sustainability-led growth
Final Word: Make in India Is Just the Beginning
It reoriented India's economic ambition around manufacturing. It got the government, industry, and investors on the same page. It built the architecture for what comes next.
But real power lies in execution. Schemes are useful. Sentiment is important. But unless factories run, jobs are created, and exports grow—nothing changes.
The good news? That change has started.
The next decade belongs to Indian manufacturing.
Relevant URLs for further reading:
Read bout Top 10 Government Schemes Powering Manufacturing Growth in India - here
Got more questions related to Indian government processes and schemes? Ask Jaankaar Bharat below
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