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The Indian Manufacturing Industry is a robust and dynamic space. It has undergone a paradigm shift since the post-independence era. From being a major domestic manufacturing hub in the 1950’s, it has now reached a level of global competitiveness.

Though the service sector occupies a major chunk on the Indian industries chart, the manufacturing sector has slowly gained traction to cover around 16-17% of GDP contribution. It is also one of the major job creators in the country, both directly and indirectly.

The ‘Make In India’ campaign has been rightly launched to boost this major sector with the objective of increasing its overall contribution to the country’s GDP to up to 25%

On 25 September 2014, the Government of India unveiled ‘Make in India’ to enable businesses to manufacture their goods in India and to incentivise committed manufacturing production. The policy strategy consisted of establishing a desirable business climate, building modern, productive infrastructure and opening up new markets for foreign capital. The plan targeted 25 economic sectors to build jobs and develop skills and aimed at transforming India into “A Regional Center for Design and Manufacturing."

"Make In India" works with these primary objectives: 

  • to achieve a 12-14% growth per annum in the manufacturing sector
  • to add an additional 100 million manufacturing jobs to the Indian economy by 2022
  • to increase the GDP contribution from the Manufacturing Sector 25% by 2025 
  • Creation of suitable skills and knowledge amongst the rural migrants and urban poor for a well-balanced development.
  • Boost domestic value addition and technical scope in the area of production.
  • Augmenting Indian market competitiveness in the manufacturing sector.
  • Continuous and sustainable development in the area of environment.

Overview of Make In India

The Make in India initiative was launched on a foundation of joint cooperation. Inputs have been collected from various sources including Union Ministers, Secretaries to the Government of India, State Governments, Industry Leaders, and various knowledge partners.

In December 2014, the National Workshop on Sector-specific Industries brought together the Secretaries to the Government of India and business leaders to address and devise an action plan for the next three years aimed at increasing the contribution of the manufacturing sector to 25 % of GDP in the coming years.

The 'Make in India' initiative focuses on four main axioms that have been designed, not only to boost manufacturing but also in other sectors. It strives for an overall holistic approach for the progress of the Manufacturing sector.

New Processes: 'Ease of doing business' has been identified as the primary factor to bring more investments into the manufacturing sector. To achieve this, a variety of measures have also been implemented to enhance the general market climate in the country. The goal is to de-license and de-regulate the sector over the entire life cycle of a company.

New Infrastructure: The creation of new and supported technology is a very significant prerequisite for the development of the industry. Government plans to develop industrial clusters and smart cities to provide high-end technology-based connectivity with advanced high-speed networking and optimized logistics arrangements.

The existing infrastructure needs to be overhauled more by upgrading of facilities in industrial clusters. Innovation and research initiatives are enabled by a fast-paced licensing system and thus the framework of the Intellectual Property Rights Registration System is being updated. The need for the expertise of the sector must be defined and, consequently, the growth of the personnel must be brought on board.

New Sectors: 25 sectors have been defined for manufacturing, infrastructure and Utility services and extensive detailed knowledge are shared through interactive web portals and highly customized brochures. FDI has been widely opened up in Defence Manufacturing, Engineering and Railroad Services.


Auto components





Defence manufacturing

Electrical machinery

Electronic system design and manufacturing

Food processing

IT and BPM


Media and entertainment


Oil and gas




Renewable energy

Roads and highways



Thermal power

Tourism & Hospitality


New Mindset: Industry is used to treating the government as a regulator. 'Make in India' seeks to address this by bringing about a radical change in how policy deals with business. The Government will collaborate industry with the economic growth of the region. The strategy would be to project Government as more of a facilitator, not the regulator.

All these efforts resulted in the largest manufacturing sector movement in the history of any country. Make In India, has illustrated the transformational potential of public-private alliances. This partnership approach has also been actively applied to involve India's global allies, as shown by the in-depth collaborations between India and the United States of America.

Ease of Doing Business

India ranked 63rd in Ease of Doing Business for 2020: World Bank Report. Under the Make In India programme, the government introduced various reforms and regulations to make it easier to set up and conduct business in India. These mammoth efforts resulted in the reformation of 2 important segments:

Construction Permits: India’s ranks No.27 in this parameter for 2019. Decreasing the number of procedures and the turn-around time for issue of construction permits is the sole reason for such high ranking.

Getting Electricity: India’s ranks at No.22 in this parameter for 2019. Businesses can get a new electricity connection in just 4 easy steps and a turn-around time of 53 days.

Make In India - Progress and Achievements So Far

Since its launch, the Make In India scheme has attracted investments worth Rs.16.40 lakh crore (US$230 billion) and investment inquiries worth Rs.1.5 lakh crore (US$21 billion) just in the period between September 2014 to February 2016. This enabled India to emerge as the top global destination for foreign direct investment (FDI) in the year 2015.

It surpassed the United States of America and China, with a total of US$60.1 billion FDI. The initiative has evolved since and now, Foreign Direct Investment (FDI) is permitted up to 100% in all 100 sectors, except for the Space Industry (74%), Defence Industry (49%) and Indian Media Industry (26%). Recently, a "Japan-India Make-in-India Special Finance Facility" has been announced by India & Japan which is planning a US$12 billion fund push for investments in this initiative.

Make in India was adopted by individual states who came up with their own schemes such as "Make in Odisha", "Tamil Nadu Global Investors Meet", Vibrant Gujarat, "Happening Haryana" and "Magnetic Maharashtra". For the FY 2016–17, India received a total FDI of US$60 Billion.

A 2019 'Doing Business Report' from the World Bank recognizes India's leap of 23 places from the 100th rank in 2017 to be ranked at 63rd among 190 nations. In just 3 years of inception, the scheme had achieved the 42nd spot in Ease of Doing Business Index, 32nd spot in World Economic Forum's Global Competitiveness Index and 19th spot in Logistics Efficiency Index. It should also be noted that India stands at No.13 in Protecting Minority Investors and No.25 in Getting Credit.

Training of Workforce

Training and providing the right kind of knowledge is key to achieve these ambitious programmes. Hence the government devised the Skill India Mission to create highly skilled employees. The Skill India Mission is spearheaded by the National Skill Development Agency (NSDA), National Skill Development Corporation (NSDC), National Skill Development Fund (NSDF), various Sector Skill Councils (SSCs) as well as hundreds of training partners registered with NSDC.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a well-designed scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) that aims at enabling a huge number of eligible candidates to take up industry-relevant skills training to help them achieve a better chance at employment.


1. What is the main objective of Make in India?

Make In India was launched with the primary objective of making India a global manufacturing hub.

2. What are some challenges faced by Make in India?

A variety of challenges in this project are the establishment of a stable economic environment, lack of research and development, development of skills and innovations, the production of labour-intensive manufacturing, the rise in the competitiveness of products produced in India, etc.

3. What does Alternative Investment Funds stand for?

Alternative Investment Fund or AIF refers to any fund constituted or established in India that is a privately collected investment mechanism that collects funds from experienced investors, whether Indian or international, to invest in compliance with a given investment strategy for the benefit of its investors.

End Note

The primary goal of the Make In India initiative is to help accelerate investment, inspire innovation, improve capabilities, secure Intellectual Property (IP) and create the best-in-class industrial infrastructure. Improvement has been made visible through the unparalleled opening of core industries – including railways, defence, insurance and medical equipment – to substantially higher rates of foreign direct investment.

Today, India 's reputation is greater than ever before. There's noticeable drive, enthusiasm and hope. Make In India is opening several opportunities for investments. Several businesses are following our motto. The world's biggest democracy is well on the road to being the most influential economy in the world.

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