MAKE IN INDIA
“Despite significant achievements, Make in India has not yet transformed India into a manufacturing-led economy.” Discuss the major achievements and persistent challenges of the initiative
Model Answer
Introduction
Launched in 2014, Make in India aims to make India a global manufacturing and design hub, led by DPIIT.
Achievements
- FDI: Significant rise in FDI inflows, improving investment attractiveness.
- Electronics: Rapid growth in mobile phone manufacturing; India is now the world’s second-largest producer by volume.
- Defence: Higher indigenous defence production, supporting Atmanirbhar Bharat.
- Diversification: Make in India 2.0 covers 27 priority sectors.
- Infrastructure: Expansion of industrial corridors and manufacturing infrastructure.
Challenges
- Manufacturing share: Still around 16–17% of GDP, below the 25% target.
- Employment: Manufacturing growth has not generated jobs proportionately.
- GVCs: Limited integration into Global Value Chains restricts scale and exports.
- R&D: Low R&D spending limits technological innovation.
- PLI: Employment benefits remain concentrated in a few sectors.
Way Forward
- Rationalise inverted tariffs.
- Improve MSME credit through TReDS.
- Reform SEZs and develop integrated industrial clusters.
- Promote industry-linked R&D and advanced technology.
- Strengthen GVC integration and skill development.
Conclusion
Make in India has improved India’s manufacturing ecosystem, but achieving employment-intensive, technology-driven and globally competitive manufacturing requires deeper structural reforms.