Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Make in India - statistics and facts
Make in India is a flagship program of the Indian government aimed at transforming the country into a leading global manufacturing and鈥investment destination. The prospect of developing a robust manufacturing sector and鈥痯ropelling exports鈥痠s targeted at economic growth and employing a largely young workforce in India. The campaign aims at transforming the manufacturing sector by improving the business environment,鈥enabling manufacturing through infrastructure鈥痑nd skill development, and lastly, foreign direct investment in key targeted sectors. Various other schemes like Skill India Mission, Startup India, and AGNII (Accelerating Growth of鈥New India鈥檚 Innovation) were launched to supplement the campaign over time.
Presently, the Make in India initiative focuses on certain key industries under the manufacturing and services sector, including automotive, electronics system design manufacturing, pharmaceuticals, roads,鈥food processing, and renewable energy, among others. The government further modified public procurement norms to give preference to companies whose goods and services have 50 percent or鈥more local content. India successfully achieved its export target of 30 trillion Indian rupees and recorded over 81 billion U.S. dollars in FDI inflow, close to the highest-ever FDI inflow in the financial year 2022.
Despite targeted curbs, Indian demand for Chinese goods remains robust as the country remains India鈥檚 leading importer. Meanwhile, many multinationals are adopting the 鈥淧lus One鈥 or 鈥淐hina Plus One鈥 strategy to reduce their reliance on manufacturing solely in one country. As companies like Boeing, Dell Technologies, HP Inc., and Apple turn to India, India鈥檚 manufacturing and infrastructural capabilities will be put to the test in the coming years.
Aligning with world trends in sustainability, India is also making strides in renewable energy and green manufacturing. Industry 4.0 or the adoption of smart factories, AI, and robotics will also redefine India鈥檚 manufacturing future. Investments in research and development, technology, and upskilling will be key to making India a global manufacturing hub.
"Vocal for Local"
The first version of Make in India turned India into an assembly hub, particularly for 鈥mobile phones鈥痑nd the wider鈥痗onsumer electronics market. However, the focus of Make in India 2.0 (launched in 2018) was on localizing the supply chain. During the COVID-19 pandemic, shortages in parts, components, and materials drove the government to recognize the need to become self-reliant, paving the way for Aatma Nirbhar Bharat Abhiyan Packages (Self-reliant India mission). Within this framework, the Production Linked Incentive (PLI) provides incentives for sales of鈥domestically manufactured products.Presently, the Make in India initiative focuses on certain key industries under the manufacturing and services sector, including automotive, electronics system design manufacturing, pharmaceuticals, roads,鈥food processing, and renewable energy, among others. The government further modified public procurement norms to give preference to companies whose goods and services have 50 percent or鈥more local content. India successfully achieved its export target of 30 trillion Indian rupees and recorded over 81 billion U.S. dollars in FDI inflow, close to the highest-ever FDI inflow in the financial year 2022.
What does the future hold for Make in India?
The trajectory of the Make in India initiative has not been without hurdles. The majority of FDI is concentrated in the services sector, while the manufacturing sector lags behind. The鈥痬anufacturing sector鈥檚 share of GDP鈥 in 2023 fell short of the target of 25 percent until 2022, which has now been extended until 2025. Despite generating jobs, the manufacturing sector鈥檚 share of total employment was around 12 percent, trailing behind other sectors in the economy. Land acquisition remains complex in many states, and while regulatory burdens have been reduced, they still hinder business operations for small and medium enterprises.Despite targeted curbs, Indian demand for Chinese goods remains robust as the country remains India鈥檚 leading importer. Meanwhile, many multinationals are adopting the 鈥淧lus One鈥 or 鈥淐hina Plus One鈥 strategy to reduce their reliance on manufacturing solely in one country. As companies like Boeing, Dell Technologies, HP Inc., and Apple turn to India, India鈥檚 manufacturing and infrastructural capabilities will be put to the test in the coming years.
Aligning with world trends in sustainability, India is also making strides in renewable energy and green manufacturing. Industry 4.0 or the adoption of smart factories, AI, and robotics will also redefine India鈥檚 manufacturing future. Investments in research and development, technology, and upskilling will be key to making India a global manufacturing hub.
