INTRODUCTION

• Make in India is an initiative by the Government of India to encourage companies to manufacture in

India and incentivize dedicated investments into manufacturing.
• The policy approach was to create a conducive environment for investments, develop a modern and
efficient infrastructure, and open up new sectors for foreign capital.
• Prime Minister Narendra Modi launched the Make in India initiative on September 25, 2014, with the
primary goal of making India a global manufacturing hub, by encouraging both multinational as well as
domestic companies to manufacture their products within the country.
• Led by the Department of Industrial Policy and Promotion, the initiative aims to raise the contribution of
the manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025 from its current
17.4%.
• Make in India has introduced multiple new initiatives, promoting foreign direct investment, implementing
intellectual property rights and developing the manufacturing sector.
• It targets 25 sectors of the economy which range from automobile to Information Technology (IT) &
Business Process Management (BPM).

OBJECTIVES

Boost Manufacturing Sector: The primary goal of Make in India is to stimulate the growth of India’s
manufacturing sector, making it a significant contributor to the country’s GDP. By promoting
manufacturing activities across various industries, the initiative aims to create a conducive environment
for investment, innovation, and expansion.

Job Creation: A critical objective of Make in India is to generate employment opportunities on a large
scale, particularly for the burgeoning youth population. By attracting investment and facilitating the
establishment of manufacturing facilities, the initiative seeks to create millions of new jobs across different
sectors and skill levels.

Enhance Ease of Doing Business: Make in India endeavors to improve the ease of doing business in
India by simplifying regulatory processes, reducing bureaucratic red tape, and enhancing transparency.
Streamlining administrative procedures and implementing investor-friendly policies are integral to
attracting both domestic and foreign investment.

Promote Innovation and Technology Adoption: The initiative aims to foster innovation and technological
advancement across various sectors by encouraging research and development activities, promoting
collaboration between academia and industry, and facilitating the adoption of advanced manufacturing
technologies.

Increase Export Competitiveness: Make in India seeks to enhance India’s export competitiveness by
manufacturing high-quality goods and services that meet international standards. By focusing on key
sectors with export potential, such as automobiles, electronics, pharmaceuticals, and textiles, the initiative
aims to expand India’s presence in global markets.

Reduce Import Dependency: Another objective of Make in India is to reduce India’s dependency on
imports, especially in critical areas such as defense, electronics, and energy. By promoting domestic
manufacturing and indigenous production, the initiative aims to enhance India’s self-reliance and
strengthen its economic resilience.

Infrastructure Development: Make in India emphasizes the importance of infrastructure development to

support the growth of manufacturing activities. Investments in infrastructure such as transportation,
logistics, power, and industrial parks are crucial for creating a robust ecosystem for manufacturing
enterprises.

Sustainable Development: The initiative recognizes the importance of sustainable development and aims
to promote environmentally friendly manufacturing practices. By encouraging the adoption of clean
technologies, resource efficiency, and renewable energy solutions, Make in India seeks to minimize
environmental impact and promote sustainable growth.

LOGO

The logo of Make in India features a bold and dynamic lion emblem, which embodies strength, resilience,
and progress. The lion is depicted as striding forward with determination, symbolizing India’s ambition to
emerge as a global manufacturing powerhouse. The lion’s body is comprised of gears, representing the
machinery and technology that drive manufacturing processes. Below the lion, the phrase "Make in India"
is prominently displayed in stylized text, conveying the essence of the initiative’s mission to promote
indigenous manufacturing and economic growth. Overall, the logo exudes confidence and optimism,
reflecting India’s aspirations for industrial transformation and global competitiveness.

SCHEMES UNDER IT

The Make in India initiative encompasses various schemes and programs aimed at promoting
manufacturing, attracting investment, fostering innovation, and enhancing competitiveness across
different sectors of the economy. Here are some key schemes under the Make in India initiative:

National Manufacturing Policy (NMP): The National Manufacturing Policy aims to increase the share of
manufacturing in India’s GDP to 25% and create 100 million additional jobs by 2022. It includes measures
to simplify regulatory processes, promote skill development, encourage investment in infrastructure, and
facilitate technology acquisition and innovation.

Ease of Doing Business Reforms: Make in India emphasizes improving the ease of doing business in
India to attract investment and promote entrepreneurship. Several reforms have been undertaken,
including the introduction of online single-window clearance systems, simplification of business
registration procedures, and streamlining of tax administration.

Invest India: Invest India is the national investment promotion and facilitation agency, tasked with
attracting investment into the country. It provides advisory and handholding support to investors,
facilitates investment approvals, and assists in setting up businesses in India.

Make in India Centers (MICs): Make in India Centers are dedicated facilities established to provide
assistance and support to investors and businesses. These centers serve as one-stop destinations for
information, guidance, and facilitation of investment projects across various sectors and states.

Modified Special Incentive Package Scheme (M-SIPS): M-SIPS is a scheme aimed at promoting
investments in the electronics manufacturing sector. It provides financial incentives such as capital
subsidies, reimbursement of expenses for technology acquisition, and tax benefits to encourage the
setting up of electronic manufacturing units in India.

Skill India: The Skill India initiative aims to enhance the skills and employability of the Indian workforce,
particularly in sectors relevant to Make in India. It includes programs for vocational training, skill
development, apprenticeship training, and certification to meet the skill requirements of the manufacturing
industry.

Startup India: Startup India is a flagship initiative to promote entrepreneurship and innovation in India. It
includes measures such as tax incentives, funding support, incubation facilities, and regulatory reforms to
nurture and support startups in key sectors, including manufacturing.

Atal Innovation Mission (AIM): AIM aims to promote innovation and entrepreneurship among students,
researchers, and entrepreneurs. It includes initiatives such as Atal Tinkering Labs, Atal Incubation
Centers, and Atal New India Challenges to foster innovation and technology development in areas
relevant to Make in India.

National Intellectual Property Rights (IPR) Policy: The National IPR Policy aims to promote innovation,
creativity, and technology development by strengthening the intellectual property rights regime in India. It
includes measures to streamline patent and trademark registration processes, enhance IP awareness,
and facilitate IP commercialization.

Production Linked Incentive (PLI) Scheme: The PLI scheme aims to boost domestic manufacturing and
promote export competitiveness in key sectors such as electronics, automobiles, pharmaceuticals, and
textiles. It provides financial incentives and subsidies to manufacturers based on their incremental
production and exports.

IMPACT

Positive Impact:

Economic Growth: Make in India has contributed to the expansion of the manufacturing sector, driving
economic growth and diversification.
Job Creation: The initiative has led to the creation of millions of jobs across various sectors, reducing
unemployment and enhancing socio-economic development.
Investment Inflows: Make in India has attracted significant domestic and foreign investment, stimulating
industrial development and infrastructure growth.
Export Growth: The initiative has bolstered India’s export competitiveness, leading to increased foreign
exchange earnings and trade balance improvement.
Technological Advancement: Make in India has spurred technology adoption and innovation, enhancing
productivity and competitiveness in manufacturing.

Negative Impact:

Skill Mismatch: There is a persistent gap between industry requirements and the skill sets of the
workforce, leading to challenges in meeting the demands of the manufacturing sector.
Infrastructure Bottlenecks: Inadequate infrastructure, particularly in transportation and logistics, hampers
the efficiency and competitiveness of manufacturing activities.
Environmental Concerns: Rapid industrialization under Make in India has raised environmental concerns,
including pollution and resource depletion, necessitating sustainable development practices.
Dependency on Imports: Despite efforts to promote domestic manufacturing, India remains reliant on
imports for certain critical components and technologies, affecting self-reliance goals.
Uneven Regional Development: The benefits of Make in India are not evenly distributed across regions,
leading to disparities in industrial development and socio-economic outcomes.
REASONS FOR NOT ACHIEVING ITS GOALS

Infrastructure Constraints: Inadequate infrastructure, including transportation networks, power supply, and
logistics, has posed challenges for manufacturing operations. Poor infrastructure increases production
costs, hampers supply chain efficiency, and undermines the competitiveness of domestic manufacturers.

Complex Regulatory Environment: India’s regulatory framework is often characterized by complexity,

bureaucracy, and red tape. Cumbersome regulatory procedures, unclear policies, and regulatory
inconsistencies create uncertainty for investors, delay project implementation, and hinder business
expansion.

Skill Shortages: Despite efforts to enhance skill development and vocational training, India still faces skill
shortages, particularly in high-tech manufacturing and advanced industries. A lack of skilled labor limits
productivity, inhibits technological innovation, and impedes the growth of the manufacturing sector.

Access to Finance: Access to affordable finance remains a challenge for many small and medium-sized
enterprises (SMEs) in India. Limited access to credit, high borrowing costs, and stringent collateral
requirements constrain the ability of SMEs to invest in technology, expand operations, and compete
effectively.

Global Competition: Indian manufacturers face stiff competition from global counterparts, particularly from
countries with lower labor costs and more advanced infrastructure. Competition from imports puts
pressure on domestic industries, reduces market share, and impacts profitability.

Environmental Concerns: Rapid industrialization and manufacturing growth can lead to environmental
degradation, pollution, and natural resource depletion. Balancing economic development with
environmental sustainability is challenging, requiring stringent regulations, pollution control measures, and
investments in clean technologies.

Policy Implementation: Effective implementation of policies and coordination among various government
departments and stakeholders is essential for the success of Make in India. Ensuring policy coherence,
overcoming bureaucratic hurdles, and addressing implementation bottlenecks are critical challenges that
need to be addressed.

Geopolitical Factors: India’s geopolitical relations with other countries can impact the success of the Make
in India initiative. Trade tensions, protectionist measures, and geopolitical conflicts can affect market
access, trade relations, and investment flows, posing challenges for Indian manufacturers.

Technology Adoption: Despite efforts to promote technology adoption and innovation, there may be
resistance to change and a lack of awareness about advanced technologies among manufacturers.
Bridging the digital divide and promoting technology diffusion are essential for enhancing productivity and
competitiveness.

COVID-19 Pandemic: The COVID-19 pandemic has posed unprecedented challenges for the
manufacturing sector, disrupting supply chains, reducing demand, and causing economic uncertainty. The
pandemic has slowed down industrial activities and investment decisions, impacting the progress of Make
in India.

MAKE IN INDIA 2.0

MAKE IN INDIA 2.0
• Some newer sectors have been added that have the potential to become global champions and drive
double-digit growth in manufacturing in the coming years such as capital goods, Auto, Defense, Pharma,
Renewable energy,
Biotechnology, Chemicals, Leather, Textiles, Food processing.
• For the manufacturing sector, plans are coordinated by the Department for Promotion of Industry and
Internal Trade (DPIIT) while the Department of Commerce is coordinating service sectors.

LIST OF 27 SECTORS UNDER MAKE IN INDIA’ INITIATIVE

MANUFACTURING SECTORS
Aerospace and Defence
Automotive and Auto Components
Pharmaceuticals and Medical Devices
Bio-Technology
Capital Goods
Textile and Apparels
Chemicals and Petro Chemicals
Electronics System Design and Manufacturing (ESDM]
Leather & Footwear
Food Processing
Gems and Jewellery
Construction
Shipping
Railways
New and Renewable Energy

SERVICE SECTORS
Information Technology & Information Technology
enabled Services (IT & ITeS)
Tourism and Hospitality Services
Medical Value Travel
Transport and Logistics Services
Accounting and Finance Services
Audio Visual Services
Legal Services
Communication Services
Construction and Related Engineering Services
Environmental Services
Financial Services
Education Services

SIMILAR PROGRAMS AROUND THE WORLD

Made in China 2025:

Country: China
Objective: Transform China into a global high-tech manufacturing leader by promoting innovation,
improving product quality, and advancing industries such as robotics, aerospace, and renewable energy.
The initiative focuses on reducing dependency on foreign technology and moving up the value chain.
Industry 4.0:

Country: Germany
Objective: Revolutionize manufacturing by integrating advanced digital technologies, such as the Internet
of Things (IoT), artificial intelligence (AI), and cyber-physical systems, into production processes. Industry
4.0 aims to enhance productivity, efficiency, and customization in manufacturing.
National Manufacturing Policy (NMP):

Country: United States

Objective: Revitalize the American manufacturing sector through policies that support innovation,
workforce development, infrastructure improvements, and trade reforms. The policy aims to enhance the
competitiveness of U.S. manufacturing on a global scale.
Make it in the Emirates:

Country: United Arab Emirates

Objective: Diversify the UAE economy by developing a robust manufacturing sector, reducing reliance on
oil revenues, and creating sustainable industrial growth. The program focuses on sectors such as
aerospace, defense, pharmaceuticals, and renewable energy.
Made in Japan:

Country: Japan
Objective: Strengthen Japan’s manufacturing capabilities by promoting technological innovation,
enhancing quality, and supporting small and medium-sized enterprises (SMEs). The initiative aims to
maintain Japan’s competitive edge in high-tech and precision manufacturing.
Make It in Great Britain:

Country: United Kingdom

Objective: Showcase the strength and innovation of British manufacturing, encourage investment, and
inspire young people to pursue careers in the manufacturing sector. The campaign highlights the
importance of manufacturing to the UK economy and its global competitiveness.
Thailand 4.0:

Country: Thailand
Objective: Transform Thailand’s economy into a value-based economy through innovation, creativity, and
technology. The initiative targets key industries such as agriculture and biotechnology, smart electronics,
affluent medical and wellness tourism, and food for the future.
Make in Vietnam:

Country: Vietnam
Objective: Enhance Vietnam’s manufacturing capabilities, attract foreign investment, and integrate into
global supply chains. The initiative focuses on developing high-tech industries, improving infrastructure,
and fostering a skilled workforce.

These initiatives share common goals of promoting domestic manufacturing, driving economic growth,
and enhancing global competitiveness through innovation, investment, and policy support.

CONCLUSION

In conclusion, the Make in India initiative represents a pivotal strategy in India’s pursuit of economic
transformation and industrial revitalization. By aiming to boost manufacturing, create jobs, attract
investments, and foster innovation, Make in India seeks to position the country as a global manufacturing
powerhouse. While the initiative has achieved notable successes in enhancing economic growth,
improving the ease of doing business, and increasing export competitiveness, it also faces challenges
such as skill mismatches, infrastructure bottlenecks, and environmental concerns.

The experiences of similar programs around the world, such as Made in China 2025 and Germany’s
Industry 4.0, highlight the importance of continuous innovation, policy adaptation, and sustainable
practices in achieving long-term industrial growth. As India continues to navigate its path forward, the
Make in India initiative remains a cornerstone of its economic agenda, embodying the nation’s aspirations
for a prosperous, self-reliant, and globally competitive future. Through sustained efforts and strategic
collaborations, Make in India has the potential to drive transformative change, fostering inclusive
development and socio-economic empowerment for millions.