Is ‘Make in India’ Actually Making?
Day 5 of delving into the manufacturing industry of India
So today, my earphones arrived from Blinkit, and I noticed something interesting—"Made in India" printed right on the box. Pretty cool, I though? But then, I just had to look around my room, and in under a minute, I spotted at least three things made in China—my table clock, my wallet, and my slippers. Just like that, I had unintentionally conducted a convenience sampling study on manufacturing origins.
And that made me ponder about today’s topic - how far have we really come with Make in India?
We’ve all heard of it. The political promotions, the catchy slogans, the grand promises. But beyond the buzzwords, what does 'Make in India' actually offer? I’d try to explain that to myself and you people today:
Before we dive in, let's set the stage with some recent headlines:
“Siemens Boosts Factory Capacity in India's Make in India Push” - Rediff
"Make in India boost: Ashwini Vaishnaw showcases laptop both designed & made in India" – International Business Times
Can 'Make in India' help Tesla navigate increasing global roadblocks? - Business Standard
Clearly, something is happening. But is it enough?
Launched on September 25, 2014, the 'Make in India' initiative was all about making manufacturing in India the next big thing. The goals?:
Increase manufacturing’s GDP contribution from 16% to 25%.
Attract Foreign Direct Investment (FDI).
Generate millions of jobs.
Has it actually moved the needle?
Well kinda yes
II. The Results So Far: Achievements and Impact
Key Successes:
Economic Growth: India has emerged as the world's fastest-growing major economy, with a growth rate of 7.5%.
Record FDI Inflows: The country has witnessed unprecedented annual FDI inflows, indicating heightened global investor interest.
Surge in Merchandise Exports: Merchandise exports during April-December 2024 is estimated at USD 602.64 Billion
Improved Ease of Doing Business: India's ranking in the World Bank's Ease of Doing Business index has seen significant improvement, reflecting a more business-friendly environment.
Manufacturing Boom in Key Sectors: There has been substantial growth in sectors like electronics, automobiles, and defense. Notable developments include:
Electronics: India has become a global hub for mobile and electronics manufacturing, with companies like Foxconn establishing significant operations.
Automobiles: Major automotive manufacturers, including Mercedes-Benz, Tesla, are expanding their production capacities in India. The components industry is experiencing a resilient growth despite trade tensions from US.
Defense: The commissioning of indigenous projects such as the Vande Bharat trains and the INS Vikrant aircraft carrier exemplifies growth in domestic defense manufacturing.
Production Linked Incentive (PLI) Schemes: The government has introduced PLI schemes with an investment of ₹1.97 lakh crore ($26 billion) across 14 key sectors, boosting domestic production and encouraging global companies to establish manufacturing units in India.
Infrastructure Development: Initiatives like PM GatiShakti and the National Logistics Policy aim to streamline supply chains and reduce logistics costs, enhancing the efficiency of domestic manufacturing.
COVID-19 Vaccine Production: India's rapid and large-scale production of COVID-19 vaccines not only met domestic demand but also positioned the country as a key global supplier, underscoring its manufacturing capabilities.
The 'Make in India' Way : How It Works
Key Pillars:
New Processes – Fewer regulatory headaches, streamlined approvals.
Infrastructure Development – Smart cities, industrial corridors, better connectivity.
Sectoral Focus – 25 sectors including automobiles, textiles, aviation, and renewable energy.
Mindset Shift – Encouraging self-reliance, innovation, and entrepreneurship.
Incentives:
PLI Schemes: ₹1.97 lakh crore ($26 billion) investment in 14 key sectors.
Tax Discounts: India now has one of the lowest corporate tax rates in Asia.
National Logistics Policy: Aims to cut logistics costs by 10% over time.
Getting into the “shoes” of a new manufacturer
Suppose I’m considering establishing a footwear manufacturing unit (since my slippers were made in China) in India, the 'Make in India' initiative will offer me several advantages:
Financial Incentives: The government provides subsidies and incentives under various schemes, including the PLI, to promote manufacturing in sectors like textiles and footwear.
Simplified Regulations: Reforms have been implemented to streamline approvals and reduce regulatory burdens, facilitating easier business setup.
Infrastructure Support: Development of industrial corridors and clusters provides access to essential infrastructure, reducing initial setup costs.
Skilled Workforce: Availability of a large, young, and skilled labor force can enhance productivity and innovation in your manufacturing processes.
Export Opportunities: With the surge in merchandise exports, there is potential to tap into international markets, especially with trade agreements facilitating easier access.
Why Make in India still isn’t making much
1. The 'Made in India' Illusion
Many so-called 'Made in India' products? They still rely on Chinese components.
WTO has challenged India's import tariffs on electronics.
2. Manufacturing GDP Contribution Still Below Target
The aim was 25% of GDP, but it’s still around 17%.
Land acquisition bottlenecks and red tape are still a thing.
3. The Employment Growth Myth
More jobs? Yes. Enough jobs? Not really.
Automation & AI are also shrinking traditional job opportunities.
4. Global Economic Uncertainty
COVID-19 disruptions, geopolitical tensions, and supply chain hiccups continue to create hurdles.
If India really wants to dominate global manufacturing, we need to:
Adopt Industry 4.0: AI, IoT, automation, robotics. (will cover it in the next one)
Empower MSMEs by cutting bureaucratic red tape.
Skill development: We need a workforce that can match global manufacturing needs.
As Amitabh Kant pointed out at the BioAsia 2025 conference, the Indian pharma sector, currently worth $50 billion, has the potential to hit $500 billion by 2047. But for that to happen, we need to shift from 'Make in India' to 'Discover in India for the World'—focusing on research and innovation rather than just manufacturing and assembly.
The same applies across sectors. Right now, we still import critical raw materials—from semiconductor chips to specialized machinery. Without deep investments in R&D and tech innovation, we’ll always be dependent on other countries for the backbone of our industries.
But if we truly want 'Made in India' to replace 'Made in China', & we need sustained reforms, innovation, and execution. AND INDIA CAN MAKE THIS HAPPEN.
Have a good day cuties<3
Signing off
Abhishree.