{"id":86552,"date":"2026-10-10T17:29:17","date_gmt":"2026-10-10T11:59:17","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=86552"},"modified":"2026-10-10T18:17:33","modified_gmt":"2026-10-10T12:47:33","slug":"make-in-india-manufacturing","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/10-10-2026\/make-in-india-manufacturing","title":{"rendered":"Make in India, Measured Against Wrong Decade"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Indian Economy; Industrial Policy and Economic Development<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2026, when the <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/25-09-2026\/12-years-make-in-india\"><strong>Make in India initiative reaches its 12th year, <\/strong><\/a>evaluations of its effects on manufacturing, exports and employment are once again fueling discussion regarding <strong>India&#8217;s industrial transformation.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Make in India and Its 12 Years of Performance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Make in India<\/strong> initiative seeks to turn India into a global manufacturing centre by drawing in investment, encouraging innovation, improving the ease of doing business, and creating employment.<\/li>\n\n\n\n<li>Its objectives include:\n<ul class=\"wp-block-list\">\n<li>Raising the proportion that manufacturing contributes to GDP.<\/li>\n\n\n\n<li>Boosting exports and global competitiveness.<\/li>\n\n\n\n<li>Setting up jobs and improving industrial skills.<\/li>\n\n\n\n<li>Lowering our reliance on imports and boosting domestic production.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Achievements of <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/25-09-2026\/12-years-make-in-india\">Make in India in Past 12 Years<\/a>:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The level of <strong>manufacturing growth<\/strong> rose from 2.4% in 2014 to 3% in 2025.<\/li>\n\n\n\n<li>The<strong> PLI schemes<\/strong> have drawn in about \u20b92.4 lakh crore in <strong>investment<\/strong>.<\/li>\n\n\n\n<li>In the 2025\u201326 period, the value of <strong>electronics exports<\/strong> was $47.96 billion.<\/li>\n\n\n\n<li>The capacity for <strong>manufacturing solar modules<\/strong> rose from 2.3 GW in 2014 to about 192 GW.<\/li>\n\n\n\n<li>The <strong>production of Penicillin G<\/strong> at home has been picked up again, which is lowering the need to import it from China.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>However, the contribution of manufacturing to GDP is still below the <strong>long-standing government aim of 25%,<\/strong> and domestic value addition together with employment generation are still uneven.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India&#8217;s Manufacturing Performance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rising Manufacturing Contribution: <\/strong>The contribution of manufacturing increased from 2022\u201323, when its share of Gross Value Added (GVA) at constant prices was<strong> 14.7 per cent, to 16.1 per cent in 2025\u201326.<\/strong><\/li>\n\n\n\n<li><strong>Investment &amp; Industrial Expansion: <\/strong>The amount of foreign direct investment going into manufacturing rose from 48% to 55%.\n<ul class=\"wp-block-list\">\n<li>The PLI schemes have been aimed at key sectors such as electronics, pharmaceuticals, automobiles, solar modules and specialty steel.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Formalisation of Employment: <\/strong>The number of workers recorded by the <strong>Annual Survey of Industries<\/strong> in registered factories in 2024\u201325 was about 2.10 crore, which is 14 lakh more than the previous year.\n<ul class=\"wp-block-list\">\n<li>The total number of people employed in manufacturing has stayed fairly steady while it shows an increase in formal industrial employment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Context: Why Comparisons Matter?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Different Growth Conditions:<\/strong> Merchandise exports worldwide increased from $6.2 trillion in 2002 to $18.8 trillion in 2013, which is a tripling, and they rose by less than 40% over the period from 2014 to 2025, reaching $26.3 trillion.<\/li>\n\n\n\n<li><strong>Global Disruptions:<\/strong> The COVID-19 pandemic, disagreements between nations over tariffs and problems with the supply chains caused a weakening of international trade.<\/li>\n\n\n\n<li><strong>Chinese Competition:<\/strong> In terms of competition, China&#8217;s manufacturing value added amounted to about <strong>$4.8 trillion (that is roughly nine times that of India)<\/strong>, thereby increasing the pressure from competition due to its <strong>large-scale production<\/strong> and the <strong>exports at lower prices.<\/strong><\/li>\n\n\n\n<li><strong>Comparative Performance:<\/strong> India&#8217;s manufacturing value added increased by 73% in dollar terms from 2014 to 2025, as opposed to an increase of 51% in the case of China and 36% on a global scale.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Structural Reforms Supporting Industrialisation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Several reforms have strengthened the manufacturing ecosystem:\n<ul class=\"wp-block-list\">\n<li>The <strong>Goods and Services Tax (GST)<\/strong> helped to create a more integrated domestic market.<\/li>\n\n\n\n<li>The <strong>Insolvency and Bankruptcy Code (IBC)<\/strong> has improved the framework for dealing with businesses that are experiencing difficulties.<\/li>\n\n\n\n<li>In 2019 the <strong>corporate tax rate<\/strong> was reduced in order to decrease the tax burden on companies.<\/li>\n\n\n\n<li>The <strong>Jan Vishwas Act<\/strong> removed a large number of minor offences related to business.<\/li>\n\n\n\n<li><strong>Labour Codes<\/strong> aim to make labour rules simpler and help businesses grow.<\/li>\n\n\n\n<li>The costs relating to <strong>logistics<\/strong> are estimated to have dropped from 13 to 14% to about 8% of GDP.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Moreover, the PLI schemes show a move towards strategic industrial policy since the major economies are now providing subsidies for domestic manufacturing.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Persistent Challenges and Issues<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Low Domestic value Addition:<\/strong> The domestic value added is still about 18 to 23 per cent, which shows that the country continues to rely on imported components.<\/li>\n\n\n\n<li><strong>Employment Deficit:<\/strong> The employment shortfall is that manufacturing which is capital-intensive has not produced the number of jobs needed.<\/li>\n\n\n\n<li><strong>Weak Labour-intensive Exports:<\/strong> Investment in textile PLI measures has not met expectations, and China still holds a leading position in a number of labour-intensive export sectors.<\/li>\n\n\n\n<li><strong>Uneven Industrial Development:<\/strong> The development of industry is uneven since manufacturing abilities and investments are still concentrated in certain sectors and areas.<\/li>\n\n\n\n<li><strong>Trade &amp; Cost Pressures:<\/strong> High input costs, import competition, changes in oil prices, and uncertain global demand make private investment less appealing.<\/li>\n\n\n\n<li><strong>Implementation Gaps:<\/strong> Gaps in implementation include problems relating to land acquisition, regulatory complexity, a shortage of skilled workers, and limited research and development activities.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deepen Domestic Value Addition:<\/strong> Promote domestic value addition by strengthening component manufacturing, the semiconductor ecosystems, and industrial research and technology transfer.<\/li>\n\n\n\n<li><strong>Promote Labour-intensive Sectors:<\/strong> Encourage the development of labour-intensive industries by focusing on textiles, footwear, leather, food processing, and furniture in order to create large numbers of jobs.<\/li>\n\n\n\n<li><strong>Improve Business Environment:<\/strong> Improve the business environment by making it easier to acquire land, obtain permits, and meet regulatory requirements while at the same time ensuring that the policies are predictable.<\/li>\n\n\n\n<li><strong>Enhance Trade Competitiveness:<\/strong> Improve trade competitiveness by reducing inverted duties and streamlining the tariffs applied to intermediate goods, components and capital equipment.<\/li>\n\n\n\n<li><strong>Integrate With Global Value Chains:<\/strong> Join global value chains by using trade agreements to draw in investment, broaden exports and obtain vital inputs.<\/li>\n\n\n\n<li><strong>Strengthen MSMEs:<\/strong> Strengthen MSMEs by improving access to affordable credit, modern technology, skilled labour, and export markets.<\/li>\n\n\n\n<li><strong>Measure Outcomes:<\/strong> Measure the outcomes by keeping track of domestic value addition, productivity, formal employment, export diversification and innovation together with investment commitments.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The 12-year period of the Make in India initiative has seen real advances in manufacturing capacity, investment, and strategic production, but the benefits have been uneven.&nbsp;<\/li>\n\n\n\n<li>The <strong>next stage<\/strong> should shift its focus from rewarding production to establishing manufacturing that is <strong>globally competitive, employment-intensive and technologically advanced.<\/strong>&nbsp;<\/li>\n\n\n\n<li>Whether India will be able to achieve its ambition of becoming a major manufacturing power will depend on sustained reforms, export integration and stronger domestic capabilities.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Examine India&#8217;s manufacturing performance, achievements and persistent challenges in changing the global economic environment.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/make-in-india-measured-against-wrong-decade\/article71564859.ece\" target=\"_blank\" rel=\"noopener\">Source: BL<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/10\/Daily-Editorial-Analysis-10-10-2026.pdf\"><strong>Download PDF<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 10 October, 2026<\/p>\n<p>In 2026, when the Make in India initiative reaches its 12th year, evaluations of its effects on manufacturing, exports and employment are once again fueling discussion regarding India&#8217;s industrial transformation.\u00a0<\/p>\n","protected":false},"author":15,"featured_media":86555,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-86552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/make-in-india.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=86552"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86552\/revisions"}],"predecessor-version":[{"id":86559,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86552\/revisions\/86559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/86555"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=86552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=86552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=86552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}