Make in India products
Under the Make in India campaign, the goal is to capitalise on the country's strengths and promote manufacturing in sectors where India has a comparative advantage.
Products manufactured under the Make in India initiative include mobile phones, automobiles, textiles, defence equipment, electronics, and more. These products are made in India with state-of-the-art technology, high-quality raw materials, and expert artisanship, making them desirable for Indian consumers as well as international buyers.
Benefits of Make in India
The Make in India campaign offers several benefits for businesses and the country as a whole. Some of these benefits include:
- Reduction in imports and increased export opportunities
- Promotion of Indian-made products
- Job creation and employment opportunities
- Strengthening of the manufacturing sector and the overall economy
- Increased foreign investment and financial support for manufacturing
Make in India – Schemes
Under the Make in India initiative, several schemes have been implemented to support and promote manufacturing growth across various sectors. These schemes aim to enhance competitiveness, attract investment, and foster innovation. Here are some key schemes:
- Production Linked Incentive (PLI) Scheme: Introduced to boost domestic manufacturing in sectors such as electronics, pharmaceuticals, and automobiles by providing financial incentives based on incremental production.
- National Manufacturing Competitiveness Programme (NMCP): Aims to enhance the competitiveness of manufacturing industries through various interventions such as technology upgradation, skill development, and access to finance.
- Skill India Programme: Focuses on enhancing the skillsets of the workforce to meet the evolving demands of the manufacturing sector and promote entrepreneurship.
PM SVANidhi scheme is also a crucial government initiative designed to provide micro-financing opportunities for street vendors, promoting inclusive growth under the Make in India vision.
- Startup India: Designed to nurture and support startups, fostering innovation and entrepreneurship in various manufacturing-related fields.
- Invest India: A national investment promotion and facilitation agency that assists investors in setting up and doing business in India, providing information, guidance, and handholding support.
- Digital India: Aims to transform India into a digitally empowered society and knowledge economy, facilitating the adoption of digital technologies in manufacturing processes and operations.
- Smart Cities Mission: Seeks to develop 100 smart cities across India with modern infrastructure and amenities, fostering sustainable urban development and attracting investment in manufacturing and related industries.
- Ease of doing business reforms: Various reforms have been implemented to simplify regulatory processes, reduce bureaucratic hurdles, and improve the overall business environment to encourage investment and facilitate manufacturing growth.
Make in India – Objectives
The Make in India initiative was launched with several key objectives aimed at transforming India into a global manufacturing hub and boosting economic growth. Here are the main objectives:
- Foster a conducive environment for investment, innovation, and entrepreneurship in manufacturing.
- Increase the share of manufacturing in India's GDP to 25% and create 100 million additional jobs by 2022.
- Streamline regulatory processes and improve the ease of doing business to attract both domestic and foreign investment.
- Enhance infrastructure development to support manufacturing activities and facilitate efficient logistics.
- Promote sustainable manufacturing practices and ensure inclusive growth across all sectors and regions.
- Encourage skill development initiatives to build a competitive workforce capable of meeting industry demands.
- Facilitate technology transfer and adoption to enhance productivity and competitiveness in manufacturing industries.
- Strengthen partnerships between the government, industry, and academia to drive innovation and research in manufacturing.
Make in India – Vision
Make in India embodies a visionary strategy to boost manufacturing's role in India's economy. With manufacturing currently constituting 15% of GDP, the program aspires to elevate this to 25%, akin to other dynamic Asian economies. Its objectives extend beyond economic expansion to job creation, fostering FDI, and positioning India as a global manufacturing hub. Symbolized by a majestic lion emblem, inspired by the Ashoka Chakra, the campaign celebrates India's multifaceted progress. Prime Minister Modi's dedication to Pandit Deen Dayal Upadhyaya underscores the campaign's ethos, honoring a patriot's legacy while charting a transformative path towards prosperity and self-reliance.
Why does the PM want to promote the idea of make it in India’?
The Prime Minister champions the 'Make in India' initiative to foster national development and attract foreign investment. Encouraging entrepreneurs and corporations to participate, he stresses their duty in advancing India's growth. By prioritizing domestic production and foreign direct investment, he aims to bolster economic prosperity. His commitment extends to streamlining processes to make investing in India seamless. He envisions a technologically advanced nation, intertwining 'Digital India' with 'Make in India'. Central to his agenda is job creation and poverty alleviation, promising substantial societal benefits. Thus, promoting 'Make in India' is not just a political agenda but a steadfast belief in comprehensive national development.
Make in India – Progress
The Make in India initiative has made significant progress since its launch, driving positive changes in India's manufacturing landscape. Here are some key indicators of its progress:
- Increased foreign direct investment (FDI) inflows in key sectors such as automotive, electronics, and defence, signalling growing investor confidence.
- Expansion of manufacturing facilities and establishment of new production units by both domestic and international companies, contributing to job creation and economic growth.
- Improvement in India's ranking in global competitiveness indices, reflecting enhanced business environment and investor-friendly policies.
- Adoption of advanced technologies and manufacturing practices to improve efficiency and productivity in various industries.
- Strengthening of infrastructure and logistics networks to support manufacturing activities and facilitate seamless movement of goods.
- Collaboration between government, industry, and academia to drive innovation, research, and skill development in manufacturing.
- Diversification of manufacturing base with increased focus on sectors such as renewable energy, biotechnology, and advanced materials, promoting sustainable growth.
- Continued efforts to address challenges such as bureaucratic red tape, infrastructure bottlenecks, and skill shortages to further accelerate manufacturing growth and competitiveness.
Make in India – Challenges
Despite its progress, the Make in India initiative faces several challenges that hinder its full potential. Here are some key challenges:
- Complex regulatory environment and bureaucratic hurdles that increase compliance costs and deter investment.
- Inadequate infrastructure, including power shortages, poor transportation networks, and limited access to finance, constraining manufacturing operations.
- Skill shortages and mismatches, particularly in technical and managerial roles, affecting productivity and innovation in the manufacturing sector.
- Competition from other manufacturing hubs with lower production costs and more developed infrastructure.
- Lack of effective enforcement of intellectual property rights, discouraging innovation and technology transfer.
- Environmental concerns and sustainability issues arising from rapid industrialisation and resource depletion.
- Uncertainty in policies and regulations, leading to investment delays and reluctance among investors.
- Geopolitical tensions and global economic uncertainties affecting trade and investment flows, impacting manufacturing growth and expansion.
Make in India- Outcomes
Foreign Direct Investment (FDI) Inflows:
The Indian government has implemented a liberal and transparent FDI policy to encourage foreign investment. Under this policy, most sectors are open to FDI through the automatic route, simplifying the process for investors. In 2014-15, India received USD 45.15 billion in FDI inflows, and since then, the country has achieved record inflows for eight consecutive years. The highest-ever FDI of USD 83.6 billion was recorded in 2021-22. Thanks to economic reforms and improvements in Ease of Doing Business, India is projected to attract USD 100 billion in FDI during the financial year 2022-23.
PMEGP is one of the important schemes under the Make in India initiative that promotes employment and the development of small-scale industries.
Production Linked Incentive (PLI):
To support the 'Make in India' initiative, the Production Linked Incentive (PLI) scheme was introduced in 2020-21. Covering 14 key manufacturing sectors, this scheme aims to stimulate domestic production and enhance competitiveness, providing a major boost to India’s manufacturing capabilities and attracting further investment in the country.
Make in India 2.0 – 27 major sectors in focus
The Make in India website provides comprehensive information on its 25 focus sectors, detailing relevant government schemes, FDI policies, intellectual property rights (IPR), and other key initiatives. Overall, 27 major sectors are covered under this campaign, categorized into Manufacturing and Services sectors as listed below:
Manufacturing Sectors:
- Aerospace and Defence
- Automotive and Auto Components
- Pharmaceuticals and Medical Devices
- Biotechnology
- Capital Goods
- Textiles and Apparel
- Chemicals and Petrochemicals
- Electronics System Design and Manufacturing (ESDM)
- Leather and Footwear
- Food Processing
- Gems and Jewellery
- Shipping
- Railways
- Construction
- New and Renewable Energy
Services Sectors:
- Information Technology (IT) and IT-enabled Services (ITeS)
- Tourism and Hospitality
- Medical Value Travel
- Transport and Logistics
- Accounting and Finance
- Audio-Visual Services
- Legal Services
- Communication Services
- Construction and Related Engineering Services
- Environmental Services
- Financial Services
- Education Services
Why Make in India?
There are several reasons why the government has prioritized the manufacturing sector. The key ones are outlined below:
Over the past two decades, India’s economic growth has largely been driven by the services sector. This strategy yielded short-term benefits, particularly through rapid expansion in the IT and BPO industries, earning India the title of the “back office of the world.” However, while the services sector’s share in India’s GDP rose to 57% in 2013, it accounted for only about 28% of total employment. Given India’s large working-age population, the services sector alone lacks the capacity to generate sufficient jobs, making it essential to strengthen manufacturing to absorb more labor.
Another major reason for this focus is the relatively weak state of India’s manufacturing sector. Manufacturing contributes only about 15% to the national GDP — significantly lower than that of many East Asian economies. India also faces a substantial trade deficit in goods, with the surplus from services covering only a fraction of this gap. Expanding domestic manufacturing can help bridge this deficit by boosting exports and reducing import dependency. Encouraging both domestic and foreign investment in manufacturing is expected to create employment opportunities across skill levels and drive industrial growth.
Moreover, manufacturing has one of the strongest multiplier effects on overall economic development. Studies show that it possesses extensive backward linkages, meaning that rising demand in manufacturing stimulates growth in related sectors. This, in turn, fosters job creation, investment, and innovation, ultimately contributing to higher living standards and sustained economic progress.
Make in India – Initiatives
For the first time, sectors such as railways, insurance, defense, and medical devices have been opened up to greater Foreign Direct Investment (FDI). The maximum FDI limit in the defense sector under the automatic route was raised from 49% to 74%, as announced by Finance Minister Nirmala Sitharaman on May 16, 2020. In addition, 100% FDI under the automatic route has been permitted in the construction sector and specified rail infrastructure projects.
To support investors, an Investor Facilitation Cell was established in 2014 to provide assistance throughout all stages of investment—pre-investment, execution, and post-delivery. The Cell serves as a single point of contact, helping investors from their arrival in India to their exit.
The government has also implemented several reforms aimed at enhancing India’s Ease of Doing Business ranking. As a result, India climbed 23 places to reach the 77th position in 2019, becoming the highest-ranked country in South Asia on this index.
Digital initiatives such as the Shram Suvidha Portal and the eBiz Portal have been introduced to simplify business processes. The eBiz Portal, in particular, provides single-window access to eleven government services related to business establishment in India. In addition, various permits and licenses required to start a business have been streamlined. Reforms have also been undertaken in key areas such as property registration, tax payment, power connection, contract enforcement, and insolvency resolution.
Other noteworthy measures include simplifying the licensing process, ensuring time-bound clearances for foreign investment applications, automating registration with the Employees’ State Insurance Corporation (ESIC) and the Employees’ Provident Fund Organisation (EPFO), adopting best practices by states for granting approvals, reducing export documentation, and promoting compliance through peer review and self-certification mechanisms.
To strengthen physical infrastructure, the government is focusing on the Public-Private Partnership (PPP) model. Significant investments have been made in ports and airports, and dedicated freight corridors are under development.
Furthermore, the government has initiated the creation of five industrial corridors across India to promote inclusive and sustainable industrialization and urbanization. These corridors are strategically distributed across the country:
1. Delhi–Mumbai Industrial Corridor (DMIC)
2. Amritsar–Kolkata Industrial Corridor (AKIC)
3. Bengaluru–Mumbai Economic Corridor (BMEC)
4. Chennai–Bengaluru Industrial Corridor (CBIC)
5. Vizag–Chennai Industrial Corridor (VCIC)
Make in India – Latest updates
Here are some of the latest updates regarding the Make in India initiative:
- Introduction of new sector-specific policies and incentives to attract investment and promote domestic manufacturing, particularly in areas such as electric vehicles, renewable energy, and medical devices.
- Expansion of the Production Linked Incentive (PLI) Scheme to include additional sectors and increase the scope of incentives for eligible manufacturers.
- Launch of strategic initiatives such as the National Infrastructure Pipeline (NIP) and the National Logistics Policy to improve infrastructure and streamline logistics, supporting manufacturing activities.
- Emphasis on promoting local manufacturing and reducing import dependence through initiatives like the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission).
- Focus on enhancing ease of doing business through digitalisation, online approvals, and regulatory reforms to facilitate investment and business operations in India.
- Strengthening of international partnerships and collaborations to attract technology transfer, investment, and market access opportunities for Indian manufacturers.
- Continued efforts to address challenges such as regulatory complexity, infrastructure gaps, and skill shortages through policy reforms and targeted interventions.
- Integration of sustainability and environmental considerations into manufacturing policies and practices to promote green growth and responsible manufacturing.
What is Make in India 2.0?
Make in India 2.0 is the latest version of the Indian government’s flagship initiative aimed at boosting manufacturing and services within the country. This updated programme focuses on 27 key sectors, with a more structured and targeted approach to driving industrial growth. The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for overseeing 15 manufacturing sectors, while the Department of Commerce is tasked with managing 12 service sectors.
One of the major strengths of Make in India 2.0 lies in its sector-specific focus. By identifying and prioritising these important industries, the initiative aims to create a supportive environment for investment and innovation. It is designed to attract both domestic and foreign investments into these sectors, encouraging industrial growth and development.
In addition to facilitating investment, the programme also emphasises the importance of building world-class infrastructure to support the needs of these industries. The objective is to create a more efficient and conducive environment for businesses to thrive, which in turn will boost job creation and enhance India’s global competitiveness.
Through this focused approach, Make in India 2.0 seeks to not only accelerate the growth of key industries but also position India as a global manufacturing hub, fostering sustainable economic development in the long term.
Difference between Make in India and Made in India
Here’s a simple table to illustrate the difference between "Make in India" and "Made in India":
| Aspect |
Make in India |
Made in India |
| Definition |
A government initiative launched in 2014 to attract investments in India’s manufacturing sector. |
Refers to products entirely manufactured or produced within India. |
| Objective |
To create a business-friendly environment and attract domestic and foreign companies to set up manufacturing units in India. |
Denotes the final label or tag that indicates the product is made in India. |
| Scope |
Focuses on increasing manufacturing capabilities and job creation within India through investment and development of industries. |
Encompasses any product produced within India, regardless of the programme’s involvement. |
| Involvement |
A government-driven programme with specific incentives and initiatives. |
Does not necessarily involve the government initiative; applies to all domestically manufactured products. |
| Impact |
Aims to transform India into a global manufacturing hub by boosting production and industrial growth. |
Represents the result of domestic production and contributes to the country's export market. |
| Example |
Companies like Apple or Samsung setting up manufacturing units in India under this initiative. |
Goods like textiles, automobiles, or electronics labelled "Made in India." |
This table highlights the fundamental distinctions between the two terms. "Make in India" is an initiative aimed at boosting manufacturing, while "Made in India" represents the outcome of that manufacturing effort.
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