In-short:
- Record FDI Achievement: India attracted $667.41 billion FDI between April 2014-March 2024, representing 67% of total FDI received over 24 years, with FDI inflows increasing 119% in the last decade
- Manufacturing Growth: Manufacturing sector contribution to GDP increased from 15% in 2014 to 17.4% in 2024, with India becoming world’s second-largest mobile phone manufacturer producing 99% domestically
- PLI Success: Production Linked Incentive Scheme generated ₹1.23 lakh crore investment and created 8 lakh jobs by July 2024, covering 14 key sectors with total budget allocation of ₹1.97 lakh crore
- Digital Infrastructure: ULIP processes logistics data across transport modes, while UPI handles 46% of global real-time payments, facilitating ₹81 lakh crore transactions in four months of 2024
- Global Integration: Merchandise exports reached $437.06 billion in FY 2023-24, with India achieving 60% global COVID-19 vaccine supply and launching indigenous defense platforms like INS Vikrant
India commemorates the 10th anniversary of Make in India on September 25, 2024, the nation celebrates a transformative decade that has fundamentally reshaped its manufacturing landscape and global economic standing. Launched by Prime Minister Narendra Modi in 2014, this flagship initiative aimed to transform India into a global design and manufacturing hub, establishing the country as a preferred destination for both domestic and international investments.
The decade-long journey has witnessed remarkable achievements, with India attracting $667.41 billion in FDI between April 2014 and March 2024, representing nearly 67% of the total FDI received over the last 24 years. This unprecedented capital inflow has catalyzed India’s emergence as the world’s fastest-growing large economy, recording an impressive 8.2% GDP growth in FY 2023-24.
Background and Strategic Rationale
Economic Challenges in 2014
When Make in India was launched, the nation faced significant economic headwinds that threatened its growth trajectory. India’s manufacturing sector contributed only 15% to GDP, far below the desired threshold and global benchmarks. The economy was grappling with sluggish industrial growth, rising import dependency, and limited FDI inflows that constrained domestic investment and job creation. static.pib.gov
Import substitution and export promotion became critical imperatives as India sought to reduce its trade deficit and enhance global competitiveness. The initiative was conceived during a period when economic growth had sharply declined, necessitating bold policy interventions to revive manufacturing and industrial activity.
Vision and Core Objectives
Make in India set three ambitious targets that would define its success trajectory:
- Increase manufacturing sector growth rate to 12-14% per annum
- Create 100 million additional manufacturing jobs by 2022Â (later revised to 2025)
- Raise manufacturing sector’s GDP contribution to 25% by 2025
The initiative operated on four foundational pillars: New Processes focusing on ease of doing business, New Infrastructure developing industrial corridors and smart cities, New Sectors opening FDI in previously restricted areas, and New Mindset transforming government from regulator to facilitator.
Key Policy Interventions
Transformative Initiatives
The 10th anniversary celebrations witnessed the launch of six groundbreaking initiatives that demonstrate the government’s commitment to further strengthening India’s industrial ecosystem:
Assessment of Logistics Cost in India: A comprehensive evaluation providing data-driven insights into logistics expenses across different sectors and regions, enabling targeted cost reduction strategies.
Industrial Park Rating System (IPRS) 3.0: Developed by DPIIT with Asian Development Bank support, this advanced benchmarking system categorizes industrial parks as Leaders, Challengers, or Aspirers based on sustainability, green infrastructure, logistics connectivity, and digitalization parameters.
Logistics Data Bank (LDB) 2.0: Enhanced with high-seas container tracking capabilities, this platform allows exporters to monitor containers across international waters, improving coordination and credibility in global markets. The system provides multi-modal visibility across road, rail, and sea transport through integration with the Unified Logistics Interface Platform (ULIP).
Logistics Ease Across Different States (LEADS) 2025: This initiative benchmarks logistics performance across states through assessment of 5-7 major corridors and API-based evaluation of section-wise speeds on key road networks.
Guidebook on Harmonised System of Nomenclature (HSN) Codes: Allocating 12,167 HSN Codes across 31 Ministries and Departments, this framework enables targeted policymaking and supports effective trade negotiations.
Integrated State and City Logistics Plans: Under the SMILE programme with ADB collaboration, these plans begin with eight cities across eight states, providing roadmaps for improving logistics efficiency and reducing costs.
Production Linked Incentive (PLI) Revolution
The PLI Scheme, launched in 2020 with a budget allocation of ₹1.97 lakh crore, has emerged as a game-changer for Indian manufacturing. By July 2024, the scheme generated total investment of Rs 1.23 lakh crore and created approximately 8 lakh jobs across 14 key sectors.
Electronics manufacturing exemplifies PLI success, with India becoming the world’s second-largest mobile phone manufacturer and achieving 99% domestic smartphone production. The electronics market reached USD 155 billion in FY 2023, demonstrating the scheme’s transformative impact.
Remarkable Achievements and Sector-wise Progress
Manufacturing Excellence Across Industries
Defense Manufacturing: The launch of INS Vikrant, India’s first domestically built aircraft carrier, symbolizes the nation’s defense manufacturing capabilities. Indigenous Vande Bharat trains showcase advanced railway technology and local manufacturing expertise.
Healthcare Sector: India emerged as a global healthcare leader during the COVID-19 pandemic, supplying 60% of global vaccine requirements and demonstrating its pharmaceutical manufacturing strength.
Electronics and Technology: Beyond mobile phones, India has developed a robust semiconductor ecosystem with the Semicon India Programme approved in 2021, attracting combined investments nearing Rs 1.52 lakh crore.
Textiles and Employment: The sector created 14.5 crore jobs, significantly contributing to India’s employment landscape while maintaining its position as a global textile powerhouse.
Toy Manufacturing: India produces an impressive 400 million toys annually, with 10 new toys being created every second, demonstrating manufacturing diversity and scale.
Export Performance: India recorded merchandise exports worth $437.06 billion in FY 2023-24, reflecting the country’s growing role in global trade and manufacturing competitiveness.
Digital Infrastructure and Innovation
Unified Payments Interface (UPI) processes 46% of global real-time payment transactions, facilitating nearly Rs 81 lakh crore in transactions from April to July 2024. This digital infrastructure supports seamless business operations and financial inclusion.
Startup Ecosystem: India has developed the world’s third-largest startup ecosystem with 148,931 DPIIT Recognized Startups generating over 15.5 lakh direct jobs. This entrepreneurial revolution complements traditional manufacturing growth.
Stakeholders and Governance Framework
Central Government Leadership
Department for Promotion of Industry and Internal Trade (DPIIT) serves as the nodal agency coordinating policy implementation across multiple ministries. Ministry of Commerce & Industry leads strategic oversight while specialized ministries like MSME and Heavy Industries focus on sector-specific initiatives.
The Asian Development Bank (ADB) partnership through the SMILE programme demonstrates international collaboration in infrastructure development and technical expertise sharing.
State-Level Implementation
Individual states launched complementary initiatives including “Utkarsh Odisha,” “Vibrant Gujarat,” “Happening Haryana,” and “Magnetic Maharashtra” to attract investments and promote local manufacturing. These state-level programs create competitive federalism and tailored development strategies.
Chief Secretaries’ Conferences provide coordination platforms for aligning state policies with national objectives, ensuring implementation consistency across diverse regional contexts.
Private Sector and Industry Participation
Domestic and international investors have responded enthusiastically, with FDI inflows increasing by 119% over the last 10 financial years (2015-24). Japan-India Make-in-India Special Finance Facility worth US$12 billion exemplifies bilateral investment partnerships.
MSMEs and startups benefit from simplified regulations, with over 42,000 compliances reduced and 3,800 provisions decriminalized to improve ease of doing business.
Labor Force and Human Capital
The initiative has prioritized skill development and human resource enhancement, creating pathways for India’s demographic dividend to contribute effectively to manufacturing growth. Industrial training institutes and skill development programs align workforce capabilities with industry requirements.
Challenges and Implementation Constraints
Regulatory and Administrative Bottlenecks
Despite significant progress, land acquisition, labor reforms, and regulatory complexities continue to pose challenges for rapid industrial expansion. Single window clearances require further streamlining to match global standards and investor expectations.
Inter-state coordination and uniform policy implementation remain works in progress, with some states advancing faster than others in creating business-friendly environments.
Infrastructure and Logistics Costs
While logistics costs have been reduced through various initiatives, achieving global competitiveness requires continued infrastructure investment and modernization. Regional disparities in infrastructure development create uneven industrial growth patterns.
Environmental sustainability considerations must be balanced with rapid industrialization goals, requiring innovative approaches to green manufacturing and clean technologies.
Achievement of Original Targets
Manufacturing’s GDP contribution has increased from 15% to approximately 17.4% by 2024, showing steady progress but falling short of the 25% target. Job creation and growth rate targets also require accelerated efforts to meet original projections.
Global supply chain disruptions and geopolitical tensions have created new challenges that require adaptive strategies and resilient manufacturing capabilities.
Way Forward and Strategic Recommendations
Accelerating Structural Reforms
Labor law reforms must be expedited to create flexible employment frameworks that balance worker protection with business requirements. Land acquisition procedures need streamlining through transparent, time-bound processes.
Single window clearances should be implemented comprehensively across all states, leveraging digital platforms for seamless approval processes.
Infrastructure and Connectivity Enhancement
PM GatiShakti’s multimodal connectivity requires continued investment and coordination across transport modes. Industrial corridors and smart cities development must be accelerated to provide world-class infrastructure for manufacturers.
Digital logistics tools like ULIP and LDB 2.0 should be continuously upgraded to maintain India’s competitive edge in supply chain management.
Global Competitiveness and Standards
Quality certification and standards compliance must be prioritized to enhance export competitiveness and brand reputation. Research and development investment should be increased to foster innovation and technological advancement.
International trade partnerships and bilateral investment treaties can provide market access and technology transfer opportunities.
Sustainability and Inclusive Growth
Environmental considerations must be integrated into industrial planning through green manufacturing practices and clean technology adoption. Regional development balance requires targeted interventions for lagging states and remote areas.
MSME support systems need strengthening to ensure small enterprises benefit from the manufacturing revolution and contribute to inclusive growth.
Continuous Monitoring and Evaluation
Performance indices like LEADS, IPRS, and sectoral benchmarks should be regularly updated to track progress and identify improvement areas. Stakeholder consultations must be institutionalized for continuous feedback and policy refinement.
International benchmarking against global manufacturing hubs can provide insights for policy optimization and strategic planning.
Conclusion
The Make in India initiative’s 10-year journey represents one of the most significant economic transformation stories in contemporary India. From a manufacturing sector contributing 15% to GDP in 2014, the nation has achieved steady growth reaching 17.4% by 2024, while attracting unprecedented foreign investment and establishing itself as a global manufacturing destination.
The initiative’s success lies not just in quantitative achievements but in its qualitative transformation of India’s economic landscape. Digital infrastructure, ease of doing business reforms, and sectoral diversification have created a robust foundation for sustained growth. The PLI scheme’s performance, startup ecosystem development, and export competitiveness demonstrate the initiative’s multi-dimensional impact.
However, challenges remain in achieving the original 25% manufacturing GDP target and addressing regional disparities in industrial development. Labor reforms, infrastructure development, and sustainability considerations require continued attention and strategic intervention.
The launch of IPRS 3.0, enhanced logistics systems, and integrated planning frameworks during the 10th anniversary celebrations signal the government’s commitment to continuous improvement and global competitiveness. These initiatives provide data-driven insights and benchmarking mechanisms essential for informed policy decisions.
As India aspires to become a $5 trillion economy and achieve developed nation status by 2047, Make in India’s foundational work provides crucial momentum. The integration of sustainability, digitalization, and innovation will determine the initiative’s success in the next decade.
The collaborative approach involving central government, states, private sector, and international partners demonstrates the power of coordinated policy implementation. Continuous monitoring through performance indices and stakeholder feedback ensures adaptive management and strategic course correction.
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