The Make in India initiative was launched on September 25, 2014, by the Government of India. It operates under the aegis of the Ministry of Commerce and Industry, with the Department for Promotion of Industry and Internal Trade (DPIIT) acting as the nodal executing agency. The initiative is designed to transform India into a global design and manufacturing hub while attracting foreign investments, fostering innovation, and streamlining the domestic business environment.
Core Objectives and Targets
The primary aim of the initiative is to boost the domestic manufacturing sector, reduce import dependency, and augment foreign investment into the country.
- The initiative targets an increase in the manufacturing sector’s contribution to the Gross Domestic Product (GDP) from 16 percent to 25 percent.
- It aims to create 100 million additional manufacturing jobs in the Indian economy.
- The program focuses on facilitating investment, enhancing skill development, and protecting intellectual property rights (IPR).
- It emphasizes the production of high-quality goods with minimal ecological impact, encapsulated in the vision of “Zero Defect, Zero Effect.”
Four Pillars of Make in India
The program is built upon four foundational pillars designed to overhaul the entrepreneurial and manufacturing landscape in India.
New Processes
Make in India recognizes the “ease of doing business” as the single most critical factor to promote entrepreneurship. The government aims to de-license and de-regulate industries across the entire life cycle of a business, replacing obsolete frameworks with transparent, user-friendly digital systems to drive investment.
New Infrastructure
The availability of modern infrastructure is heavily prioritized for industrial growth. The government is developing industrial corridors, smart cities, and integrated logistic arrangements. It also focuses on upgrading the intellectual property rights (IPR) registration infrastructure and establishing targeted skill-development institutions for the workforce.
New Sectors
The initiative has significantly opened up key domestic sectors to Foreign Direct Investment (FDI). Sectors such as Defence Production, Insurance, Medical Devices, and Railway Infrastructure have witnessed dramatically higher levels of permitted FDI to spur technological adoption and capital infusion.
New Mindset
The initiative mandates a paradigm shift in the government’s role from a rigid regulator to an active facilitator. The government acts as a partner to the industry in the economic development of the country, ensuring proactive support for global investors and domestic entrepreneurs.
Sectoral Coverage and Make in India 2.0
Make in India initially focused on 25 sectors but has been upgraded to Make in India 2.0, which now covers 27 broader sectors to expand its economic footprint.
Division of Nodal Responsibilities
- The Department for Promotion of Industry and Internal Trade (DPIIT) coordinates the action plans for 15 manufacturing sectors.
- The Department of Commerce coordinates the action plans for 12 champion service sectors.
Key Sectors Included
- Manufacturing sectors encompass Aerospace and Defence, Automotive and Auto Components, Pharmaceuticals, Bio-Technology, Capital Goods, Electronics System Design and Manufacturing (ESDM), Leather and Footwear, and Renewable Energy.
- Make in India 2.0 further identifies 24 specific sub-sectors, including furniture, air-conditioners, ready-to-eat food, ethanol, ceramics, robotics, drones, and toys, to push targeted domestic manufacturing.
Institutional Mechanisms for Investment Facilitation
To ensure swift project execution and policy stability, specific institutional bodies have been created under the Government of India.
Empowered Group of Secretaries (EGoS)
The EGoS was established to provide targeted support to global investors and facilitate investment in key sectors. It resolves inter-ministerial hurdles, ensures timely clearances from different departments, and ushers in policy consistency for the overall investment environment.
Project Development Cells (PDCs)
PDCs have been set up across various Central Ministries, headed by an officer not below the rank of Joint Secretary. They conceptualize investible projects, prepare complete Detailed Project Reports (DPRs) with available land allocation, identify available incentives, and resolve issues to fast-track project implementation.
Allied Schemes and Government Enablers
Make in India is supported by a network of auxiliary schemes that directly fund, incentivize, or facilitate domestic production.
Production Linked Incentive (PLI) Scheme
Announced with an outlay of INR 1.97 lakh crore, the PLI scheme covers 14 key manufacturing sectors. It provides financial incentives based on incremental sales of products manufactured in India, directly boosting domestic production capabilities and export competitiveness.
Zero Defect and Zero Effect (ZED) Certification
Supporting the Make in India initiative, the Ministry of Micro, Small and Medium Enterprises (MSME) runs the ZED scheme. It inculcates quality manufacturing practices without adverse environmental impact, offering up to 80 percent subsidy to MSMEs for attaining certification.
Ease of Doing Business Reforms
The initiative is supplemented by structural platforms like the National Single Window System (NSWS) for centralized business approvals, the India Industrial Land Bank (IILB) for identifying manufacturing sites, and PM GatiShakti for multi-modal connectivity infrastructure.
Major Achievements and Economic Impact
The policy shifts initiated under the Make in India program have yielded measurable macroeconomic benefits over the past decade.
- Foreign Direct Investment (FDI) inflows recorded a continuous upward trajectory, growing from USD 45.15 billion in 2014-2015 to the highest ever annual FDI inflow of USD 81.97 billion in the financial year 2020-21.
- India’s position in the World Bank’s Ease of Doing Business Report climbed significantly from 142nd in 2014 to 63rd in 2020.
- Defence production has seen a massive surge, with exports multiplying multifold due to the introduction of positive indigenization lists and domestic procurement quotas.
- The total employment in the manufacturing sector increased from 57 million in the year 2017-18 to 62.4 million in the year 2019-20.
UPSC Prelims Fact File
| Parameter | Fact / Detail |
| Launch Date | September 25, 2014 |
| Nodal Ministry | Ministry of Commerce and Industry |
| Nodal Department | Department for Promotion of Industry and Internal Trade (DPIIT) |
| Program Logo | A striding lion made of cogs, symbolizing manufacturing strength and national pride |
| Core Slogan | “Zero Defect, Zero Effect” |
| Target GDP Contribution | 25 percent of GDP from the manufacturing sector |
| Target Job Creation | 100 million additional jobs |
| Make in India 2.0 Focus | 27 Sectors (15 Manufacturing, 12 Services) |