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Make in India aims to transform India into a global manufacturing hub across 27 sectors. Launched Sept 2014. By 2025: India became world''s 2nd largest mobile phone manufacturer; FDI inflows doubled; manufacturing sector contribution targeting 25% of GDP. PLI schemes are the primary implementation vehicle.
Target Beneficiaries: All manufacturing sectors; 27 focus sectors including automobiles, defence, electronics, food processing, pharmaceuticals, railways, renewable energy, textiles
Implementing Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
1045
Funding Ratio (Centre:State): Promotion driven; fiscal incentives via PLI and tax reforms (15% corporate tax for new manufacturing units).
GS Paper: GS3
Syllabus Tags
Launched on 25th September 2014 to reverse the 'jobless growth' trend and attract FDI into the manufacturing sector.
Incentives based on incremental sales for 14 key sectors.
Metric
$84.8 billion
Source: DPIIT / RBI
Metric
200+ (from 2 in 2014)
Source: Ministry of Electronics and IT
Make in India was designed to move India from a service-led economy to a manufacturing powerhouse. While it has successfully increased FDI and established India as the 2nd largest mobile manufacturer, the manufacturing sector's share of GDP has remained stagnant at around 14-16% against a target of 25%. The shift from general 'Ease of Doing Business' to targeted 'Production Linked Incentives (PLI)' marks a maturing of the initiative. The main structural constraint remains the high cost of inputs (power/logistics) and the complexity of labor laws (though recently codified).
Has 'Make in India' succeeded in transforming India into a global manufacturing hub? Critique the impact of PLI schemes in this context.
Link 'Make in India' with 'Atmanirbhar Bharat'. Use as a focal point for answers on 'Structural Transformation' of the economy. Mention the 4 pillars: New Processes, New Infrastructure, New Sectors, New Mindset. Use the 'Defense Offset Policy' and 'PLI' as sub-points for sectoral success.