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Make in India: Fuelling India’s Manufacturing Ambition Under the Modi Government

India’s economic landscape has been buzzing with the “Make in India” initiative, a flagship
program launched by Prime Minister Narendra Modi in September 2014. More than just a
slogan, it’s a powerful call to action aimed at transforming India into a global manufacturing
and design hub, attracting investments, fostering innovation, and boosting domestic
production.

The initiative came at a crucial time when India’s growth rate had dipped, and there was a
pressing need to revive the manufacturing sector’s contribution to the nation’s GDP and create
much-needed employment opportunities. The Modi government’s role in propelling “Make in
India” has been multifaceted, focusing on a paradigm shift from a regulatory approach to that
of a facilitator and partner for industry.

The Four Pillars and Modi Government’s Contribution:

“Make in India” is built on four core pillars, each actively strengthened by the Modi
government’s policies and initiatives:

1. New Processes: Ease of Doing Business The Modi government recognized that
   simplifying regulations and reducing bureaucratic hurdles were paramount.
   Significant reforms have been undertaken to improve India’s ranking in the World
   Bank’s Ease of Doing Business Index, which saw a remarkable jump from 142 in
   2014 to 63 in 2020. Initiatives like single-window clearances, digitization of
   processes, and the introduction of the Goods and Services Tax (GST) have
   streamlined taxation and made company incorporation much easier. The Jan Vishwas
   law further aimed to decriminalize minor offenses, fostering a more business-friendly
   environment.
2. New Infrastructure: World-Class Foundations A robust manufacturing sector
   requires modern and efficient infrastructure. The government has prioritized
   developing industrial corridors (like the Delhi-Mumbai Industrial Corridor), smart
   cities, and integrated logistics arrangements. Investments in railways, highways, and
   ports have aimed to facilitate seamless movement of goods, reduce costs, and enhance
   productivity. The PM GatiShakti National Master Plan is a prime example of this
   integrated approach, aiming to improve multi-modal connectivity. The focus also
   extends to digital infrastructure, with projects like BharatNet bringing broadband to
   rural areas.
3. New Sectors: Opening Avenues for Investment “Make in India” identified 25 key
   sectors across manufacturing, infrastructure, and services for focused growth. The
   Modi government liberalized Foreign Direct Investment (FDI) norms significantly in
   various sectors, including defence, railways, insurance, and medical devices, to attract
   global capital and expertise. This has led to increased FDI inflows, with companies
   like Kia, Boeing, and Horiba setting up manufacturing units and expanding operations
   in India. The Production Linked Incentive (PLI) schemes, with an outlay of ₹1.97
   lakh crore (over US$26 billion), for 14 key sectors (including mobile manufacturing,
   medical devices, and automobiles) have been a game-changer, incentivizing domestic
   production and promoting global competitiveness.
4. New Mindset: Government as a Facilitator Perhaps the most significant
   contribution of the Modi government has been the shift in mindset. The government
   aims to be a facilitator, not just a regulator, partnering with industry for economic
   development. This collaborative model has involved extensive engagement with
   industry leaders, state governments, and international partners. The “Zero Defect Zero
   Effect” slogan coined by Prime Minister Modi encapsulates the aspiration for high-
   quality, environmentally responsible manufacturing.

Achievements and Impact:

Over the past decade, “Make in India” has demonstrated tangible achievements:

• Increased Exports and Investments: The initiative has significantly boosted exports
  across various sectors, with India’s merchandise exports reaching an all-time high of
  USD 778 billion in 2023-24. FDI inflows have also seen a substantial increase,
  reaching USD 667.41 billion between April 2014 and March 2024.
• Boost in Domestic Manufacturing: India has emerged as the second-largest mobile
  phone manufacturer globally, with 95% of smartphones sold in India now being made
  domestically. The defence sector has also witnessed a drive towards self-reliance,
  with the indigenous manufacturing of fighter jets and naval ships.
• Improved Business Environment: India’s improved ranking in the Ease of Doing
  Business Index is a testament to the government’s efforts in streamlining processes
  and policies.
• Focus on Self-Reliance (Atmanirbhar Bharat): The “Make in India” initiative is
  deeply aligned with the vision of “Atmanirbhar Bharat” (self-reliant India), especially
  highlighted during and after the pandemic, to build resilient domestic supply chains.

Challenges and the Road Ahead:

While “Make in India” has made significant strides, challenges remain. The manufacturing
sector’s contribution to GDP, while seeing growth, hasn’t yet reached the ambitious target of
25% by 2022 (revised to 2025). Issues like skill development, land acquisition, and
improving competitiveness against global players continue to be areas requiring sustained
focus.

However, with initiatives like Make in India 2.0, the Modi government continues to
demonstrate its commitment to fostering a robust manufacturing ecosystem. By continuously
enhancing infrastructure, simplifying regulations, incentivizing innovation, and cultivating a
proactive partnership with industry, India is firmly on its path to becoming a formidable
global manufacturing powerhouse. The journey is ongoing, but the foundation laid by the
“Make in India” initiative under the Modi government has undeniably set India on a
transformative trajectory.