Make in India and Manufacturing Policy — Historical Overview
Historical Overview
Make in India is a flagship initiative launched in September 2014 to transform India into a global manufacturing hub by increasing manufacturing's GDP share from 16% to 25% by 2025 and creating 100 million jobs by 2022.
The initiative focuses on 25 key sectors including automobiles, textiles, pharmaceuticals, defense, and electronics through four pillars: new processes (simplified procedures), new infrastructure (industrial corridors), new sectors (FDI liberalization), and new mindset (government-industry partnership).
Key reforms include significant FDI liberalization (defense manufacturing FDI increased from 26% to 74%), ease of doing business improvements (ranking improved from 142nd to 63rd), and development of industrial corridors like Delhi-Mumbai Industrial Corridor.
The initiative integrates with Digital India, Skill India, and Startup India for comprehensive transformation. Recent evolution includes Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore across 14 sectors, representing targeted, performance-based manufacturing promotion.
Post-COVID-19, Make in India has aligned with Atmanirbhar Bharat emphasizing supply chain resilience and import substitution while maintaining global integration focus. Major achievements include record FDI inflows, manufacturing growth, and sector-specific successes in mobile manufacturing and pharmaceuticals.
Challenges include infrastructure bottlenecks, skill gaps, regulatory complexity, and global competition. The initiative represents India's strategic positioning in global value chains during a period of supply chain reconfiguration.
Often confused with
Side-by-side differences the UPSC paper likes to test.
| Aspect | Make in India and Manufacturing Policy | National Manufacturing Policy 2011 |
|---|---|---|
| Scope | Comprehensive initiative covering manufacturing, services, infrastructure, and governance reforms | Focused primarily on manufacturing sector development and industrial promotion |
| Approach | Global integration with emphasis on FDI attraction and export promotion | Domestic market-oriented with limited focus on global value chain integration |
| Policy Framework | Four-pillar strategy with new processes, infrastructure, sectors, and mindset | Traditional industrial policy approach with investment promotion and infrastructure development |
| Implementation | High-level political commitment with PM leadership and integrated approach across ministries | Ministry-level implementation with limited cross-sectoral coordination |
| Target Timeline | 25% manufacturing GDP share by 2025, 100 million jobs by 2022 | 25% manufacturing GDP share by 2022 with focus on employment generation |
Make in India represents a paradigm shift from the National Manufacturing Policy 2011's domestic-focused approach to a globally integrated manufacturing strategy. While NMP 2011 was a sectoral policy, Make in India is a comprehensive transformation initiative that integrates manufacturing with broader economic reforms, infrastructure development, and governance improvements.
The key difference lies in Make in India's emphasis on global value chain integration, FDI attraction, and simultaneous focus on domestic manufacturing and export promotion.
Why it is tested: UPSC frequently tests the evolution of India's industrial policies and the shift from protectionist to globally integrated approaches. Questions often compare different policy phases and their effectiveness in achieving manufacturing growth and employment generation.
| Aspect | Make in India and Manufacturing Policy | China's Manufacturing Strategy |
|---|---|---|
| Development Stage | Emerging manufacturing hub seeking to increase manufacturing GDP share from 16% to 25% | Established manufacturing powerhouse with 28% manufacturing GDP share transitioning to high-tech manufacturing |
| Policy Focus | Attracting global manufacturers through FDI liberalization and ease of doing business reforms | Made in China 2025 focuses on upgrading to high-tech manufacturing and reducing dependence on foreign technology |
| Market Approach | Open economy approach with emphasis on FDI attraction and global integration | State-led approach with significant government investment and strategic sector protection |
| Competitive Advantage | Large domestic market, demographic dividend, English-speaking workforce, democratic institutions | Established supply chains, infrastructure, manufacturing ecosystem, and scale economies |
| Challenges | Infrastructure gaps, skill development, regulatory complexity, and late entry into global manufacturing | Rising labor costs, environmental concerns, trade tensions, and technology transfer restrictions |
Make in India and China's manufacturing strategy represent different stages of industrial development. While China focuses on upgrading its established manufacturing base to high-tech sectors, India seeks to build basic manufacturing capabilities while simultaneously targeting advanced sectors.
India's democratic approach contrasts with China's state-led model, offering different advantages in terms of market access and investor confidence but facing challenges in rapid decision-making and resource mobilization.
Why it is tested: UPSC examinations often include questions comparing India's manufacturing strategy with global models, particularly China's approach. Understanding these differences is crucial for questions on India's competitive positioning and policy effectiveness.