Reflecting on a Decade of Make in India: Achievements, Challenges, and the Road Ahead

At its inception, ‘Make in India’ was motivated by the need to shift India from a predominantly service-led economy to one where manufacturing plays a central role. The goal was to increase the manufacturing sector’s GDP share to 25% by 2022, a target still unmet but closer in reach. The initiative’s vision was underscored by three core objectives: to increase manufacturing’s GDP contribution, reduce reliance on imports, and generate employment for millions of Indians.

Make in India spurred significant foreign investment inflows, especially in industries like electronics, automobiles, and renewable energy. Major companies have set up production facilities in India, bolstering job creation, technological advancement, and export potential. With its promising talent pool and cost-effective labor, India became increasingly appealing as a manufacturing hub for global players looking to diversify beyond China.

Alongside investment, the government’s emphasis on infrastructure has been crucial. Industrial corridors like the Delhi-Mumbai Industrial Corridor (DMIC) have emerged, connecting manufacturing clusters to major ports and streamlining logistics. Infrastructure investments in railways, highways, and ports have facilitated the movement of goods across regions, reducing costs and enhancing productivity.

Make in India spurred some of the most ambitious policy reforms in decades, improving the ease of doing business and simplifying regulations. Notably, India’s rank in the World Bank’s Ease of Doing Business Index improved from 142 in 2014 to 63 in 2019, reflecting streamlined processes in business registration, permits, and tax compliance.

Labor reforms were also a notable stride, consolidating 29 labor laws into four codes to balance worker rights with business flexibility. Additionally, land acquisition reforms and tax simplifications under the Goods and Services Tax (GST) created a more unified market, which made it easier for businesses to operate across state lines.

One of the defining shifts under Make in India has been the drive toward self-reliance. As seen in the Production Linked Incentive (PLI) schemes and support for sectors like electronics and defense manufacturing, the government has worked to reduce dependence on imports and foster domestic supply chains. The pandemic accelerated this focus on self-reliance, with global supply chain disruptions highlighting the importance of a resilient, homegrown industrial base.

The defense sector, once heavily reliant on imports, has become a focal point for self-reliance. India is now manufacturing indigenous fighter jets, naval ships, and advanced weaponry, a significant step towards strategic autonomy and security. Additionally, initiatives such as the India Semiconductor Mission aim to establish a semiconductor manufacturing base, reducing dependence on global suppliers for critical technology.

A key goal of Make in India was job creation, particularly for India’s burgeoning youth population. While manufacturing jobs have increased, the scale is still below expectations, partly due to automation and global economic pressures. Initiatives like Skill India have emerged alongside Make in India to ensure that young Indians are prepared for advanced manufacturing roles. Through partnerships with industry players, Skill India is equipping workers with skills aligned with modern industry needs, from AI and robotics to quality control.

Despite achievements, Make in India has faced challenges. The target of making manufacturing account for 25% of GDP has yet to be achieved, with the sector still hovering around 17%. Land acquisition remains complex in many states, and regulatory burdens, though reduced, still hinder business operations, especially for small and medium enterprises (SMEs).

Global factors have also played a role. Trade tensions, shifting geopolitical alliances, and economic uncertainty impacted manufacturing investments. The pandemic, while highlighting India’s potential as a manufacturing hub, also disrupted supply chains and investment plans.

As Make in India moves into its second decade, its success will depend on continued adaptability and focus on technology and sustainability. The world is shifting toward sustainable manufacturing, and India has already made strides in renewable energy and green manufacturing. Policies encouraging green hydrogen, electric vehicle production, and battery manufacturing are positioning India as a player in the global clean energy market.

Additionally, the adoption of Industry 4.0—smart factories, AI, IoT, and robotics—will define the future of Indian manufacturing. Investing in technology, R&D, and upskilling is critical to making India’s manufacturing ecosystem globally competitive and resilient to future disruptions.