The “Make in India” initiative, launched in 2014, has been an important driver for the transformation of the country’s manufacturing sector. This campaign aims to promote India as a global manufacturing hub, attracting foreign investment, boosting domestic production, and creating employment opportunities for the youth. The initiative has identified 25 key sectors, including textiles, automotive, and electronics, to focus on and has implemented a range of policy measures to support the growth of these industries. The program has been successful in attracting foreign direct investment into the country, with a continuous increase in FDI inflows since its inception. Additionally, the “Make in India” campaign has helped to improve the quality of manufacturing in India, with a focus on producing goods that meet international standards and reducing the environmental impact of production processes.

One of the key sectors that has benefited from the “Make in India” initiative is the textile industry. The textile sector is a significant contributor to India’s economy, accounting for 2% of the country’s GDP and employing over 45 million people. The “Make in India” campaign has helped to attract investment into the textile industry, leading to the modernization of production facilities and the development of new technologies. This has resulted in improved product quality, increased efficiency, and reduced environmental impact, making Indian textile products more competitive in the global market. The campaign has revolutionised the Defence industry. Apart from the defence, another sector that has seen significant growth under the “Make in India” initiative is the automotive industry. The automotive sector is a crucial driver of economic growth in India, contributing over 7% to the country’s GDP. The “Make in India” campaign has helped to attract investment from global automobile manufacturers, leading to the establishment of new production facilities and the expansion of existing ones. This has resulted in the creation of new jobs and the development of a robust automotive ecosystem in India, with a focus on producing high-quality vehicles for both the domestic and export markets.

However, the “Make in India” initiative has faced some challenges, including issues related to infrastructure, labour skills, and red tape. Nevertheless, the program has been successful in transforming the manufacturing sector, making it a key driver for India's economic growth and the realization of the government’s “Viksit Bharat” vision.

The initiative has had varied impacts on key economic indicators. As per the Ministry of Statistics and Programme Implementation, the manufacturing GDP growth rate was 7% in 2014, dropped to 3.9% during 2015-2019, and then rose to 11.6% by 2023. India Brand Equity Foundation revels that the FDI inflows to manufacturing increased significantly from $6.38 billion in 2014 to $15.69 billion during 2015-2019, reaching $48.03 billion by FY23. Statista (2024) found that the manufacturing sector’s GDP share increased from 15% in 2014 to 17.4% during 2015-2019 but declined to 13% in 2023. A Rajya Sabha document (2023) by the Ministry of Commerce and Industry states that Employment in manufacturing grew from 57 million in 2014 to 62.4 million by 2019-20 and has remained stable. Additionally, BDO India’s report shows that India’s Ease of Doing Business rank improved from 134 in 2014 to 63 in 2020 and maintained this rank through 2023. These figures are the result of multiple variables. The initial decline in the GDP growth rate of manufacturing may be ascribed to transitional obstacles and the duration needed for policy effects to become apparent. The growth that followed is a result of successful reform implementation and heightened investor confidence. The marked uptick in FDI inflows is indicative of the government's proactive measures and better investment climate. Changes in industry sectors and external economic conditions may be the cause of the changes in the GDP share of the manufacturing sector. The employment statistics’ consistency points to a consistent increase in jobs within the industry. The initiative’s business-friendly changes and regulatory simplifications have proven to be effective, as seen by the increase in the Ease of Doing Business ranking.

Kishore is an alumnus of XISS and holds a PhD in Strategic CSR from Santiniketan. Currently, he works for HPPI and studies ESG at IICA. Chaudhary holds a PhD and currently teach HRM at APIM. Views are persons.