Make in India, launched on 25 September 2014, completes 12 years in 2026 with mixed results. FDI inflows rose sharply and PLI schemes created a globally competitive electronics and smartphone industry. However, manufacturing’s share of GDP has stayed around 16–17%, below the original 25% target, and its shares of employment and global exports have changed little. The new National Manufacturing Mission now aims for a 25% share by 2035.
Syllabus: GS Paper 3 – Indian economy: growth, development and employment; Industrial policy and its effects on industrial growth
Prelims: Medium – launch date, targets, PLI, National Manufacturing Mission
Last updated: 25 September 2026
Context
On its 12th anniversary, reviews of Make in India, including an assessment in The Hindu on 25 September 2026, found that manufacturing’s contribution to growth, employment and global exports has remained largely unchanged since 2014. The recent incentive schemes have delivered gains in only a handful of sectors.
About Make in India
| Feature | Details |
|---|---|
| Launched | 25 September 2014 by the Prime Minister; nodal department: DPIIT, Ministry of Commerce and Industry |
| Original targets | Manufacturing growth of 12–14% a year; share of GDP to 25% (by 2022, later pushed to 2025); 100 million additional manufacturing jobs |
| Four pillars | New processes (ease of doing business), new infrastructure, new sectors (FDI opening), new mindset (government as facilitator) |
| Make in India 2.0 | Focus sectors expanded to 27 (manufacturing and services) |
| Key instruments | FDI liberalisation, PLI schemes (14 sectors, 2020–21), PM Gati Shakti, National Logistics Policy (2022), corporate tax cut (2019), industrial corridors |
| Successor push | National Manufacturing Mission (Budget 2025–26): 25% GDP share by 2035 |
Achievements
- FDI: Annual FDI inflows rose from about US$45 billion in 2014–15 to a record of about US$85 billion in 2021–22; the April 2014–March 2024 period accounted for roughly two-thirds of all FDI received since 2000.
- Electronics and smartphones: The PLI for large-scale electronics turned India into a major smartphone exporter; mobile phones are now among India’s top export items.
- PLI results: Government data cite around ₹2.16 lakh crore of investment and over 14 lakh jobs linked to PLI schemes.
- Ease of doing business: Decriminalisation of minor offences (Jan Vishwas Act, 2023), single-window clearances and logistics reforms.
- Defence manufacturing: Positive indigenisation lists and rising defence exports.
- Recent growth: Manufacturing GVA growth picked up in FY 2025–26 on the new 2022–23 base.
Where Make in India Fell Short
| Target / metric | Outcome |
|---|---|
| Manufacturing share of GDP to 25% | About 16–17%; it had even dipped to 15.9% in FY 2023–24 from 16.7% in FY 2013–14 |
| 100 million new manufacturing jobs | Industry’s share of employment has risen by less than one percentage point |
| 12–14% annual growth | Real manufacturing value-added growth averaged well below this over 2014–2025, with contractions in the pandemic years |
| Global export share | India’s share of world merchandise exports remains under 2% |
Challenges
- Import dependence: Much PLI-driven production is assembly with low domestic value addition; components come largely from China and East Asia.
- Factor markets: Land acquisition, rigid labour compliance (the four Labour Codes are only now being implemented) and costly power and logistics.
- Skills: A shortage of industry-ready workers despite Skill India.
- MSME weakness: Credit constraints and delayed payments hold back the firms that create most jobs.
- Tariff policy: Raising tariffs to protect domestic firms can hurt their ability to compete on exports.
- Global headwinds: Protectionism, carbon border taxes such as the EU’s CBAM, and automation reducing the job intensity of manufacturing.
Way Forward
- Move PLI from assembly to deep supply chains: components, semiconductors (India Semiconductor Mission), specialty chemicals.
- Prioritise labour-intensive sectors such as textiles, apparel, leather, footwear, toys and food processing for jobs.
- Implement the Labour Codes and state-level land and power reforms; states compete on the business environment.
- Link industrial policy to skills through apprenticeships and ITI upgrades aligned with industry clusters.
- Use trade agreements (India–UK CETA, India–EFTA TEPA) to plug into global value chains.
- Give MSMEs better credit (TReDS, credit guarantees) and ensure delayed payments are enforced.
Conclusion
After 12 years, Make in India has changed the business environment and produced success stories like electronics, but it has not yet triggered broad-based industrialisation. The next phase will be judged on jobs and domestic value addition, not investment announcements.
Key Facts for Prelims
- Make in India launched: 25 September 2014; nodal body: DPIIT.
- Original targets: 25% GDP share, 100 million jobs, 12–14% manufacturing growth.
- PLI schemes: 14 sectors, approved 2020–21.
- National Manufacturing Mission (Budget 2025–26): 25% of GDP by 2035.
- Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalised minor business offences.
Mains Practice Question
Q. Twelve years after its launch, Make in India has changed India’s investment climate more than its employment structure. Critically evaluate, and suggest measures to make manufacturing a driver of mass employment. (15 marks, 250 words)
Approach: Introduce targets. Give achievements with data (FDI, electronics, PLI). Show gaps (GDP share, jobs, exports). Explain the causes (import dependence, factor markets, skills, MSMEs). Suggest labour-intensive focus, deep supply chains, reforms. Conclude.
FAQs
When was Make in India launched?
Make in India was launched on 25 September 2014. The Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal department.
What were the targets of Make in India?
The original targets were manufacturing growth of 12–14% a year, raising manufacturing’s share of GDP to 25%, and creating 100 million additional manufacturing jobs.
Has Make in India achieved its targets?
Not fully. FDI and electronics exports grew strongly, but manufacturing’s share of GDP is still around 16–17% and its share of employment and global exports has changed little.
What is the PLI scheme?
Production Linked Incentive schemes give firms incentives linked to incremental sales of goods made in India. Schemes were approved for 14 sectors in 2020–21, with electronics and mobile phones the most successful.
What is the National Manufacturing Mission?
Announced in the Union Budget 2025–26, the National Manufacturing Mission aims to raise manufacturing’s share of GDP to 25% by 2035 through policy support for small, medium and large industries.
Sources: Make in India – Wikipedia (data compilation); PIB factsheet: Manufacturing Momentum; Official portal.
Related reading on GSMitra: Semicon India 2026, India GDP growth 7.8%, BRICS and the EU carbon border tax.
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