10 Years of Make in India

Syllabus: GS3/ Economy

Context

• On September 25, 2014, the “Make in India” initiative completed 10 years as a pivotal step in India’s nation-building efforts.

Pillars of ‘Make in India’

• New Processes: The “Make in India” initiative identified ‘ease of doing business’ as a crucial factor for promoting entrepreneurship.
• New Infrastructure: The government focused on developing industrial corridors and smart cities, integrating state-of-the-art technology and high-speed communication to create world-class infrastructure.
• New Sectors: Foreign Direct Investment (FDI) was significantly opened up in various sectors including Defence Production, Insurance, Medical Devices, Construction, and Railway infrastructure. 
• New Mindset: The government embraced a role as a facilitator rather than a regulator, to foster a collaborative environment that supported industrial growth and innovation.

Major Achievements under Make in India

• FDI inflows have steadily risen, starting from $45.14 billion in 2014-15 to a record $84.83 billion in 2021-22.
• India made remarkable progress in improving its business environment, climbing from 142nd in 2014 to 63rd in the World Bank’s Doing Business Report (DBR) published in October 2019 before its discontinuation.
• India recorded merchandise exports worth $437.06 billion in FY 2023-24, reflecting the country’s growing role in global trade.
• The textile industry has created a staggering 14.5 crore jobs across the country, significantly contributing to India’s employment landscape.
• Vande Bharat Trains, India’s first indigenous semi-high-speed trains, are a shining example of the success of the ‘Make in India’ initiative. 
• India became a major exporter of life-saving vaccines to many developing and underdeveloped countries across the world. 
• India’s electronics sector has experienced rapid growth, reaching USD 155 billion in FY23. 

What are the concerns?

• The share of manufacturing in India’s GDP was 17.3 percent in 2013-14, and it was still stagnant at 17.7 percent in 2023 far from the target of 25% by 2030.
• The share of the manufacturing sector in total employment in the country has marginally declined from 11.6 percent in 2013-14 to 10.6 percent in 2022-23.
• India’s exports as a share of GDP has fallen from 25.2 percent in 2013-14 to 22.7 percent in 2013-24.
  • Exports are also relatively concentrated in goods and services that tend not to be labor-intensive.

Conclusion

• As the “Make in India” initiative celebrates its 10th anniversary, it stands as a testament to India’s determination to reshape its manufacturing landscape and enhance its global standing. 
• Though the efforts and achievements fall short when the fundamental indicators of the manufacturing sector show lackluster growth, With strategic reforms, investment-friendly policies, and a strong focus on infrastructure development, the initiative has significantly enhanced India’s industrial capabilities.

Source: PIB