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.