Article 3 : Make in India for Vikasit Bharat: Policy Instruments, Achievements and Challenges
Why in news: Make in India is in focus due to recent Union Budget measures, expansion of PLI schemes, push for semiconductor manufacturing, and efforts to strengthen domestic production amid global supply-chain shifts and the China-plus-one strategy.
Key Details
- Make in India is a flagship initiative of the Government of India, launched in September 2014
- Objective is to transform India into a global manufacturing hub
- Focus on 25 priority sectors including:
- Electronics
- Defence manufacturing
- Automobiles
- Pharmaceuticals
- Textiles
- Renewable energy
- Core pillars of the initiative:
- Ease of Doing Business through deregulation and simplification
- FDI liberalisation in key manufacturing sectors
- Skill development via Skill India and industry-academia linkages
- Infrastructure creation including industrial corridors and logistics parks
- Emphasis on domestic value addition, job creation, and export competitiveness
Core Pillars
- Ease of Doing Business
- Simplification of laws and procedures
- Online approvals and time-bound clearances
- Reduction in regulatory burden
- Infrastructure Development
- Industrial corridors and manufacturing clusters
- Improved logistics, ports, highways, and freight corridors
- Skill Development
- Industry-linked skilling programmes
- Focus on manufacturing-specific and advanced skills
- Innovation and Technology
- Promotion of R&D and indigenous technology
- Adoption of Industry 4.0, automation, and digital manufacturing
Priority Sectors
- Covers 25 strategic sectors, including:
- Electronics and semiconductors
- Automobiles and auto components
- Defence manufacturing
- Pharmaceuticals and medical devices
- Textiles and apparel
- Renewable energy
- Chemicals and petrochemicals
- Sector-specific policies designed to attract targeted investments
Major Policy Instruments
A. Production Linked Incentive (PLI) Scheme
- Provides financial incentives based on incremental production and sales
- Aims to achieve economies of scale and global cost competitiveness
- Encourages domestic value addition instead of import-dependent assembly
- Targets sunrise sectors such as electronics, semiconductors, EVs, pharmaceuticals, and solar modules
- Helps integrate Indian firms into global value chains
B. FDI Liberalisation
- Increased FDI limits and automatic route approvals in manufacturing sectors
- Liberalisation in defence, electronics, pharmaceuticals, and automobiles
- Enhances technology transfer, managerial expertise, and capital inflows
- Improves India’s attractiveness as a manufacturing destination
C. Industrial Corridors and Manufacturing Clusters
- Development of industrial corridors with multimodal connectivity
- Creation of integrated townships offering plug-and-play infrastructure
- Reduces logistics costs and improves supply-chain efficiency
- Promotes cluster-based manufacturing and regional industrialisation
D. MSME Support Measures
- Credit support through guarantee schemes and easier access to finance
- Focus on technology upgradation and quality improvement
- Market access via government procurement and export promotion
- Integration of MSMEs with large manufacturing value chains
Achievements So Far
- Significant growth in electronics manufacturing, particularly mobile phones
- Rise in defence production and steady increase in defence exports
- Improved investment climate and higher investor confidence
- Strengthening of domestic manufacturing ecosystems in selected sectors
- Enhanced recognition of India as an emerging global manufacturing hub
Challenges
- High logistics and input costs reducing cost competitiveness
- Land acquisition issues and complexities in labour regulations
- Persistent skill mismatch between industry needs and workforce capabilities
- Limited deep value addition, with dependence on imported components
- Uneven implementation of reforms and policies across states
Way Forward
- Deepen manufacturing ecosystems by strengthening MSME participation in global value chains
- Scale up PLI schemes with focus on high-technology and sunrise sectors
- Invest in skilling and reskilling aligned with Industry 4.0 requirements
- Improve logistics efficiency through multimodal transport and digital platforms
- Promote green manufacturing to align with climate commitments
- Strengthen state-level reforms for faster land, labour, and approval processes
Conclusion
Make in India is central to India’s vision of becoming a self-reliant and globally competitive manufacturing economy. By promoting investment, innovation, infrastructure, and skill development, the initiative strengthens domestic production, reduces import dependence, and creates employment. Its long-term success depends on consistent reforms, technology adoption, MSME integration, and global value-chain participation, ensuring sustainable and inclusive industrial growth.
Descriptive question:
Q. “Make in India aims to transform India into a global manufacturing hub.” Discuss. (10 marks, 150 words.)