The ‘Make in India’ initiative, launched in 2014, marks a significant milestone as it completes a decade of efforts to position India as a global manufacturing hub. The campaign was designed to attract investment, foster innovation, improve skill development, protect intellectual property, and build world-class manufacturing infrastructure.
Key Initiatives Driving ‘Make in India’
Production Linked Incentive (PLI) Schemes: The PLI schemes aim to boost domestic manufacturing and exports across 14 key sectors. By July 2024, total investments had reached Rs 1.23 lakh crore, creating approximately 8 lakh jobs.
PM GatiShakti: Launched with the goal of achieving a USD 5 trillion economy by 2025, this initiative focuses on establishing multimodal connectivity infrastructure. It operates through seven primary sectors: Railways, Roads, Ports, Waterways, Airports, Mass Transport, and Logistics Infrastructure.
Semiconductor Ecosystem Development: The Semicon India Programme, approved in 2021, aims to develop a sustainable semiconductor and display ecosystem in India.
National Logistics Policy (NLP): This policy seeks to enhance India’s logistics sector using advanced technology, better processes, and skilled manpower. It aims to reduce logistics costs, improve India’s Logistics Performance Index (LPI) ranking to the top 25 by 2030, and create a data-driven decision support system.
Industrialization and Urbanization: The National Industrial Corridor Development Programme is India’s flagship infrastructure initiative, aimed at developing smart cities and advanced industrial hubs.
Startup India: Launched to foster entrepreneurship and establish a strong startup ecosystem, this initiative aims to transform India into a nation of job creators. As of September 2024, India has the third-largest startup ecosystem globally, with over 148,931 DPIIT-recognized startups generating more than 15.5 lakh direct jobs.
Tax Reforms: The introduction of Goods and Services Tax (GST) marked a major overhaul of India's tax system.
Unified Payments Interface (UPI): UPI processes 46% of global real-time payment transactions, highlighting its importance in digital finance. From April to July 2024, UPI facilitated nearly Rs 81 lakh crore in transactions, reflecting its growing consumer trust and robustness.
Key Achievements Under ‘Make in India’
Global Vaccine Supply: India achieved record COVID-19 vaccination coverage, powered by indigenous vaccines, and became a leading exporter, supplying nearly 60% of the world’s vaccines.
Vande Bharat Trains: India’s first indigenous semi-high-speed trains, a product of the ‘Make in India’ initiative, are currently operational, with 102 services (51 trains) enhancing connectivity and showcasing advancements in rail technology.
Defence Production Milestones: The launch of INS Vikrant, India’s first domestically produced aircraft carrier, signifies major strides toward defense self-reliance. In 2023-24, defense production reached Rs 1.27 lakh crore, with exports to over 90 countries.
Electronics Sector Growth: India’s electronics sector grew to USD 155 billion in FY23, with production nearly doubling since FY17. Mobile phones now account for 43% of this production, making India the second-largest mobile manufacturer globally.
Export Performance
Merchandise Exports: Merchandise exports reached USD 437.06 billion in FY 2023-24.
Defence Footwear: ‘Made in Bihar’ boots have been incorporated into the Russian Army’s equipment.
Kashmir Willow Bats: These bats have gained international recognition, highlighting India’s craftsmanship in cricket.
Amul’s Global Expansion: Amul launched its dairy products in the US, demonstrating the global appeal of Indian dairy.
Textile Industry Employment: The textile sector has generated approximately 14.5 crore jobs, making a significant contribution to India’s employment landscape.
Toy Production: India produces around 400 million toys annually, innovating with 10 new toys developed every second.
Challenges Faced by ‘Make in India’
Global Manufacturing Index: As of 2023, India ranks 5th in the Global Manufacturing Index, trailing behind countries like China and the USA. This indicates the need for enhanced competitiveness.
Manufacturing Contribution to GDP: The manufacturing sector contributed approximately 17% to India’s GDP in FY 2022-23. To reach the target of 25% by 2025, substantial reforms are needed.
Skill Development Deficiencies: According to the India Skills Report 2024, around 60% of India’s workforce lacks relevant skills for manufacturing jobs, limiting the sector’s growth potential.
Supply Chain Challenges: The COVID-19 pandemic revealed vulnerabilities in global supply chains, which continue to affect India’s manufacturing landscape. A shift toward localizing supply chains is necessary but remains underdeveloped.
Investment Targets: The government set a target of attracting USD 100 billion in manufacturing investment by 2025. By 2023, only about USD 23 billion had been achieved, indicating a gap between goals and reality.
Innovation and R&D: India’s R&D expenditure as a percentage of GDP is just 0.7%, significantly lower than the global average of 1.8% and behind major economies. More focus on innovation and research is essential to drive progress.
Conclusion
The ‘Make in India’ initiative has reshaped India’s economic landscape over the past decade. While the journey has been challenging, it has laid the foundation for a more resilient and diverse economy. To truly emerge as a global manufacturing powerhouse, India must continue its commitment to reforms, innovation, and inclusivity.
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