Make in India: Objectives, Features & Key Government Initiatives, Success and Li

India has traditionally had a large services sector, while manufacturing has faced challenges such as high logistics costs, skill gaps, infrastructure constraints, and dependence on imports. Recognising the need to strengthen domestic manufacturing, attract investment and create employment, the Government of India launched the “Make in India” initiative in September 2014.

• As per the current assessment, logistics costs in India are estimated at 7.97% of total GDP, marking a major decline from historical estimates of 13–14%.
• The India Skills Report 2026 places youth employability at 56.4%, meaning nearly 44% of graduates remain unemployable.

What is Make in India?

The Make in India initiative, launched by the Prime Minister of India , Narendra Modi, on September 25, 2014, aims to position India as a global hub for design, innovation, and manufacturing while encouraging investment, entrepreneurship, and industrial growth.

Key Features of Make in India

• Launch Date: 25 September 2014
• Managing Agency: Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
• Core Principle: Guided by "Minimum Government, Maximum Governance" to improve the ease of doing business.

Key Objectives

The initiative aims to position India as a preferred manufacturing hub globally.

• Boost Manufacturing: Increase the manufacturing sector's growth rate and raise its contribution to the country's Gross Domestic Product (GDP) to 25%.
• Create Jobs: Generate millions of new employment opportunities for India's large and young workforce.
• Attract Investment: Encourage both domestic and foreign companies to invest in production within India by improving the ease of doing business.
• Encourage Innovation: Foster technological depth, research, and skill development across key industrial sectors.

Four Pillars of Make in India

The Make in India initiative is built on four core pillars: New Processes, New Infrastructure, New Sectors, and New Mindset.

1. New Processes: It focuses on simplification of procedures, deregulation, and reduction of unnecessary compliance burdens. It also promotes greater use of technology for approvals and government services. Thus, this pillar focuses on the ease of doing business.
2. New Infrastructure: This pillar builds modern industrial corridors, smart cities, and world-class infrastructure. It uses fast communication and better logistics to support factories.
3. New Sectors: This pillar opens up new areas for foreign investment. Major sectors include automobiles, defence manufacturing, electronics, pharmaceuticals, textiles, food processing, railways, and renewable energy.
4. New Mindset: This pillar changes how the government works with businesses. The government shifts from being primarily a regulator to a facilitator. It encourages entrepreneurship, innovation, and private-sector participation.

Major Focus Sectors

The initiative initially identified 25 sectors. Make in India 2.0 currently focuses on 27 priority sectors divided between manufacturing and services, including:

Manufacturing Sectors (15)

• Aerospace and Defence
• Automotive and Auto Components
• Pharmaceuticals and Medical Devices
• Bio-Technology
• Capital Goods
• Textile 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

Service Sectors (12)

• Information Technology and IT-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
• Environmental Services
• Construction and Related Engineering Services
• Financial Services
• Education Services

Major Government Initiatives

National Industrial Corridor Development Programme (NICDP)

The NICDP aims to develop world-class industrial corridors with modern infrastructure, integrated townships and efficient logistics to promote manufacturing and investment. Major corridors include the Delhi-Mumbai, Chennai-Bengaluru and Amritsar-Kolkata Industrial Corridors.

PM Gati Shakti National Master Plan

Pradhan Mantri Gati Shakti Yojana, also known as the PM Gati Shakti scheme National Master Plan (NMP), is a major Government of India initiative launched on 13 October 2021 to promote integrated and coordinated infrastructure development. It provides a digital platform for integrated planning and aims to improve multimodal connectivity by bringing together different modes of transport, including roads, railways, ports, airports, waterways and logistics infrastructure. It promotes multimodal connectivity by integrating roads, railways, ports, airports and logistics infrastructure. Its objective is to reduce logistics costs, avoid duplication of projects, improve connectivity, and facilitate faster movement of goods and people. It supports Make in India by creating efficient infrastructure and strengthening India’s manufacturing and supply-chain ecosystem.

Dedicated Freight Corridors (DFC)

Dedicated Freight Corridors (DFCs) are railway corridors designed specifically for the efficient movement of freight, reducing pressure on passenger rail routes.

India has developed major corridors such as the Eastern DFC and Western DFC, connecting important industrial and consumption centres. DFCs support Make in India by strengthening industrial connectivity and facilitating the movement of raw materials and finished goods.

Sagarmala Project

The Sagarmala Programme, launched in 2015, aims to promote port-led development by modernising ports and improving connectivity between ports and industrial centres.The programme seeks to reduce logistics costs and transit time, improve India’s export competitiveness and support the growth of coastal economic zones.

Production Linked Incentive (PLI) Scheme

The PLI Scheme, introduced in 2020, aims to boost domestic manufacturing by providing financial incentives linked to incremental production and sales. It covers key sectors such as electronics, pharmaceuticals, automobiles, textiles, telecom and solar PV modules.

Success of Make in India

The success of Make in India can be seen in the major manufacturing growth, investments and structural reforms since its launch in 2014.

• Ease of Doing Business: India’s rank on the World Bank’s Ease of Doing Business Index improved dramatically from 142 in 2014 to 63 in 2019, aided by digitization and streamlined regulations.
• Mobile & Electronics Manufacturing: India has grown to become the world's second-largest mobile phone manufacturer, producing a significant share of global devices, including iPhones.
• Defense Production: Achieving greater self-reliance and a multifold increase in defense exports. India's defence exports reached a record high of ₹38,424 crore in 2025–26.
• Transport & Infrastructure: The rollout of indigenous high-speed trains like the Vande Bharat series showcases domestic engineering and design capabilities.
• Increase in FDI: $94.53 billion in FDI during the 2025–2026 fiscal year, the highest annual amount ever recorded. Total investment over this 12-year period grew by 169% compared to the previous 12 years.
• Pharmaceutical Sector: Currently, India's pharmaceutical industry ranks 3rd globally by volume and 11th by value. Also, India supplies over 20% of the world's generic medicine volume.

Challenges & Limitations of Make in India

Despite progress in several sectors, Make in India faces structural challenges that limit India's ability to become a globally competitive manufacturing hub.

• Low Share of Manufacturing in GDP: Manufacturing's contribution to GDP has remained around 17–18%. This indicates that growth in manufacturing has not yet transformed the overall economic structure to the desired extent.
• Employment: Manufacturing's share of total employment has remained largely unchanged.
• Global Exports: India's global merchandise export share remains around 1.7%.

• Sectoral Concentration: PLI investment and employment are concentrated in a small number of sectors like electronics, automobiles, and pharmaceuticals, etc.
• High Logistics Costs: Logistics costs remain relatively high compared with major manufacturing economies. This reduces the price competitiveness of Indian exports.
• Skill Gap: India has a large workforce, but there is a mismatch between industry requirements and available skills. According to the Economic Survey, only 8.25% of graduates are employed in roles that match their educational qualifications.
• Low R&D and Innovation: India's R&D expenditure remains relatively low as a share of GDP. India spends approximately 0.6% to 0.8% of its GDP on Gross Expenditure on Research and Development (GERD).
• Concentration on Assembly: In some sectors, particularly electronics, India's growth has initially been driven substantially by assembly rather than deep manufacturing. Greater domestic production of components is required to increase value addition.
• Global Competition: India faces strong competition from manufacturing hubs such as China, Vietnam, Thailand and Bangladesh.

Way Forward

The next phase of Make in India should focus not merely on increasing production, but on creating globally competitive, technology-intensive and employment-generating manufacturing.

• Move from Assembly to Value Addition: Promote domestic production of components, machinery and critical inputs so that India moves from assembly-led manufacturing to deeper value addition. Improve strategic indispensability as suggested by the Economic Survey 2024–25.
• Strengthen MSMEs: Improve access to affordable credit, technology, infrastructure and markets, while integrating MSMEs with large domestic and global supply chains.
• Invest in Skills: Align skill-development programmes with industry requirements, particularly in electronics, semiconductors, robotics, AI, precision engineering and advanced manufacturing.
• Promote R&D and Innovation: Increase public and private investment in research, design and technology, enabling Indian firms to compete in high-value manufacturing.
• Integrate with Global Value Chains: Use trade agreements, industrial clusters and export-oriented policies to attract global manufacturers and connect Indian firms with international supply chains.
• Promote Green Manufacturing: Encourage energy-efficient production, renewable energy, circular economy practices and low-carbon technologies to make Indian manufacturing globally sustainable.

Make in India has laid the foundation for a stronger manufacturing ecosystem, but its long-term success depends on deeper value addition, skilled employment, innovation and global competitiveness. By strengthening MSMEs, infrastructure, R&D and supply chains, India can transform its manufacturing potential into sustainable, inclusive and export-led economic growth.