 
Launched in September 2014, the Make in India initiative aims to make India an international manufacturing hub. Moreover, job development will increase and the economy will grow during the last decade through this initiative. The practice has gained material appreciation during recent years, especially in terms of foreign direct investment. Infrastructural facilities have improved significantly and the practice of innovation has been promoted. However, it has also faced some challenges in attaining its objectives in complete perfection. In this blog, we shall discuss the significant developments and difficulties of ‘Make in India’ over the last decade, citing evidence from relevant data while supporting the statements.
FDI Growth: A Strong Inflow of Investments
Among the greatest success stories of ‘Make in India’ has indeed been the sharp uptick in Foreign Direct Investment (FDI) inflows. During the period of 2014 and 2022, the inflows in India touched entirely new levels, making the country one of the top global investment destinations.
- FDI Inflow: According to official data, in FY 2021-22, India has witnessed its highest annual FDI inflow at $83.57 billion, showing a significant increase from pre-2014 levels.
- Principal Industries: Among the spiking principal industries are in automobiles, telecommunications, pharmaceuticals, textiles, and electronic systems. The policy furnished investment in 25 industries, which enabled it to spur production in those industries.
Industrials Revival: A Transformation in the Economic Economy
The ‘Make in India’ initiative went a long way in changing India from being an economy that relied primarily on services to an economy which was more **industry-oriented.
- Contribution of Manufacturing to GDP: In 2014, this share of the manufacturing sector is about 15% for the overall India’s GDP. Thus, though a long way to go before reaching the target of 25% by 2022 under the program, currently, manufacturing contributes about 17-18% of GDP.
- The Automobile Sector: India has emerged as the 4th largest automobile market in the world, mainly due to both domestic and foreign investment. Production in the sector has risen dramatically over the last decade and represents one of the key drivers of ‘Make in India’.
Infrastructure Development: Enabling Growth
For industrial development, a strong infrastructure forms a prerequisite. ‘Make in India’ promoted the setting up of smart cities, industrial corridors, and dedicated freight corridors.
- Industrial Corridors: The Delhi-Mumbai Industrial Corridor (DMIC) is a flagship infra project under ‘Make in India’. It will attract $100 billion of investments and generate millions of jobs.
- Port Modernization: India has made significant improvements in modernising its ports under the Sagarmala Project to enhance trading efficiency. The port traffic has seen a sharp rise, reducing erstwhile logistical costs and enhancing export competitiveness.
H4 Employment Generation: Progress and Setbacks
Some of the main issues that the ‘Make in India’ scheme aimed at were to achieve employment at all levels in both manufacturing as well as services sectors. The program has created millions of jobs already but was adversely affected again due to external reasons like the COVID-19 pandemic.
Estimates also mention that ‘Make in India’ yielded around 60 million new jobs into both direct and indirect employment, mainly in labor-intensive areas like textiles, automobiles, and electronics.
- 2020 Pandemic Effect: The pandemic of 2020 had already induced job losses and slackened the pace of manufacturing somewhat, thus temporarily arresting the momentum in the implementation of this initiative. However, under the influence of stimulus packages, it has rebounded in the years 2021 and 2022.
Challenges: Room for Improvement
Though the ‘Make in India’ initiative has been successful to some great extent, there are some challenges which stay in the way of ‘Make in India’ to achieve its total potential.
- Ease of Doing Business: India’s Rank in Ease of Doing Business improved from 142 in 2014 to 63 in 2019, but bureaucratic hurdles, regulatory challenges, and inconsistent policies continue to slow down investment and industrial growth in several sectors.
- Lack of Skilled Labor: Where the government is now focusing considerably on manufacturing, a great shortage of skilled labour still persists in India. The need of the hour is to reorient the education system better to service the newly developed industry.
- Global Competition: It is heavily outcompeted by similar hubs for manufacturing, such as China, Vietnam, and Thailand, which offer lower labor costs, besides a better-developed manufacturing structure.
Technology and Innovation: Pushing the Boundaries
At one level, ‘Make in India’ has always been at the heart of the technology and innovation agenda. It appears to have triggered several innovations across different sectors, mainly electronics, IT hardware, and telecom.
- Start-up Ecosystem: India is now home to more than 100 unicorns and, therefore, can be classified as one of the largest unicorn ecosystems globally. The vast majority of start-ups have emerged in a specific area: technology-focus, particularly in AI, ML, and robotics.
-Electronics and Telecom: With increased pressure of indigenization in the electronics and telecom sector, indigenization of mobile phone and 5G infrastructure is also seen increasing. India is now fast emerging as the leader in manufacturing of smartphone that is sending its goods all over the world.
The Future of ‘Make in India’
Looking ahead, the ‘Make in India’ initiative would still go a long way in reshaping the Indian economic agenda. Investments in other sectors like renewable energy, defense, and biotechnology are still up for grabs and can be increased further to enhance the prospects of economic growth.
- PLI Scheme: The recently announced Production Linked Incentive scheme provides incentives to boost domestic manufacturing in sectors. The PLI scheme has already started bearing fruit, particularly in electronics and pharmaceutical industries.
- Sustainability: Going forward, ‘Make in India’ will have to focus on sustainable manufacturing practices that are aligned with the global parameters of environmental standards. For an environment-focused nation like India, ‘Make in India’ looks forward to becoming a major contender in the renewable market.
Conclusion: A Decade of Progress with More Promise to Come
It is thus in conclusion that the ‘Make in India’ initiative has changed the face of India as a hub of global manufacturing. Increased FDI would create more jobs, and the focus on quality infrastructure and innovation would further pave the way to long-term industrial growth. Bureaucratic hurdles, global competition, and more importantly, a shortage of quality labor will continue to challenge the country in forging ahead as a major manufacturing economy. With such excellent reforms and policies, ‘Make in India’ can really come alive to its full realization.
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