Context:
Recently, India celebrated the 10th anniversary of the ‘Make in India’ initiative, launched on September 25, 2014, which has empowered the country as a global manufacturing hub.
Make in India
Objective:
- To facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class manufacturing infrastructure.
- It was one of the first ‘Vocal for Local’ initiatives, to strengthen India’s manufacturing capabilities and to highlight its industrial potential to the world.
- This initiative has made significant achievements and presently focuses on the following 27 sectors under Make in India 2.0.
- Make in India 2.0 focuses on furthering sustainability, innovation, and self-reliance.
- It was designed to transform India into a global hub for design and manufacturing.
- The Department for Promotion of Industry and Internal Trade is coordinating action plans for the manufacturing sectors, while the Department of Commerce oversees the service sectors.
- The Government of India is aiming to increase the target of the foreign direct investment (FDI) inflow to $100 billion per year from $70-80 billion annually in line with the “Make in India” initiative.
10 Years of Impact
Foreign Direct Investment (FDI):
- India has attracted a cumulative FDI inflow of USD 667.4 billion (2014-24), an increase of 119% over the preceding decade (2004-14).
- FDI equity inflows to manufacturing sector over the past decade (2014-24) reached USD 165.1 billion, marking a 69% increase compared to the previous decade (2004 -14).
- FDI refers to an ownership stake in a foreign company or project made by an investor, company, or government from another country
- Production Linked Incentive (PLI) Scheme: It was introduced in 2020 have resulted in ₹1.32 lakh crore in investments and a significant boost in manufacturing output of ₹10.90 lakh crore as of June 2024.
- Exports: India’s merchandise exports surpassed USD 437 billion in FY 2023-24.
- Ease of Doing Business: India’s rank increased from 142nd in 2014 to 63rd in 2019 in the World Bank’s Doing Business Report.