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Eight Years of Make in India

About Make in India Initiative

  • Launch: Make in India was launched on 25th September 2015 with an aim of transforming the country into a leading global manufacturing and investment destination.
  • Ministry: Make in India  is being led by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
  • Approach: The policy approach was to create a conducive environment for investments, develop a modern and efficient infrastructure, and open up new sectors for foreign capital.
  • Objectives: “Make in India” had three stated objectives:
    • To increase the manufacturing sector’s growth rate to 12-14% per annum.
    • To create 100 million additional manufacturing jobs in the economy by 2022.
    • To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (later revised to 2025).


Stats IQ: India’s Manufacturing Sector

  • Contribution to GDP: 16-17% of GDP.
  • Employment generation: 6.24 crore in 2019-20 (14% of the labour force).
  • Share in exports: 65% of Indian exports are manufactured goods.
  • Global rankings:
    • India is the fifth largest manufacturer in the world and accounts for roughly three per cent of global manufacturing output.
    • According to Global Manufacturing Risk Index 2021, India has emerged as the second most sought after manufacturing destination across the world.


Make in India: Key Initiatives and Measures

  • Attracting foreign investments: To attract foreign investments, Government of India has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
    • FDI inflows in India stood at US $ 45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for eight years. The year 2021-22 recorded the highest ever FDI at $83.6 billion.
  • Production Linked Incentive (PLI) scheme: It was launched in 2020-21 across 14 key manufacturing sectors. It incentivizes domestic production in strategic growth sectors where India has comparative advantage.
  • Ease of doing business:
    • Several reforms and liberalization of guidelines have been undertaken to reduce unnecessary compliance burden and bring down cost.
    • Compliance burden reduced through simplification, decriminalization, and digitization.
    • National Single Window System (NSWS) was launched in 2021 to provide a single digital platform to investors for approvals and clearances.
  • Public Procurement (Preference to Make in India) Order, 2017: The policy aims at encouraging domestic manufacturer’s participation in public procurement activities over entities merely importing to trade or assemble items.
  • PM Gati Shakti– National Master Plan: For multimodal connectivity to manufacturing zones in the country. This will ensure logistical efficiency in business operations through the creation of infrastructure that improves connectivity.
  • The One-District-One-Product (ODOP) initiative: For facilitating promotion and production of the indigenous products from each district of the country and providing a global platform to them.
  • Toy manufacturing: Several strategic interventions have been taken by government to promote domestic toy manufacturing, such as:
    • Increase of Basic Custom Duty from 20% to 60%, implementation of Quality Control Order, and mandatory sample testing of imported toys.
    • Several promotional initiatives like The India Toy Fair 2021, Toycathon 2021, Toy Business League 2022 to encourage innovation and new-age design to suit global requirements.
    • India’s export of toys registered tremendous growth of 636% in April-August 2022 over the same period in 2013.
  • Defence manufacturing:
    • FDI in the defence sector is allowed up to 74% through automatic route (from earlier 49%).
    • Defence Acquisition Procedure (DAP) – 2020: encourages indigenous designing and manufacturing of defence items.
    • Innovations for Defence Excellence (iDEX): Launched in 2018, which aims at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, start-ups, individual innovators, R&D institutes & academia.
    • Defence Production and Export Promotion Policy 2020 (DPEPP): to provide a focused, structured, and significant thrust to defence production capabilities of the country for self-reliance and exports.
Make in India
Make in India

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