Evaluating a Decade of Make in India: Policy Outcomes, Structural Challenges, and Global Competitiveness

Abstract

The Make in India initiative, launched in 2014, marks India’s most ambitious reform in industrial policy since liberalization in 1991. It aims to tackle the challenge of integrating nearly 12 million new workers into the labor force each year. The goals include increasing manufacturing’s share of GDP from 16% to 25% by 2025 and creating 100 million jobs. The program seeks to shift India's growth from being primarily service-based to being driven by manufacturing, promoting inclusive and sustainable growth.  The research uses a secondary data approach, relying on government reports, trade databases, and academic studies. It compares India’s progress with other emerging economies and applies statistical tools to assess sector outcomes, FDI inflows, job creation, and export competitiveness. The findings show notable advancements in the electronics, pharmaceuticals, and automotive sectors. India has become the second-largest manufacturer of mobile phones globally and is reinforcing its position as the "pharmacy of the world." FDI inflows rose to $709.8 billion from 2014 to 2024, making up about 69% of the total inflows since 2000. However, job creation has not met the 100 million targets, with only 35 to 40 million jobs added, mostly in the unorganized sector. Export growth has been strong, reaching $778.2 billion in 2023–24, but competitiveness is held back by a reliance on imports, high production costs, and issues in global supply chains. The study concludes that Make in India has changed India’s industrial landscape by attracting FDI, increasing exports, and supporting certain sectors. Still, its potential has been limited by uneven regional development, job shortages, and systemic inefficiencies. To achieve its goals, India needs to focus on innovation-driven manufacturing, incorporate sustainability, and strengthen global trade partnerships. The long-term value of the initiative lies in the institutional capacity and policy learning it has encouraged, building a solid foundation for India’s industrial resilience and competitiveness.