On the 25th of September 2024, the famous “Make in India” campaign led by Narendra Modi celebrated its 10th anniversary, marking numerous accomplishments in this initiative in the past 10 years.
What is the Make in India Campaign?
The Make in India campaign, launched by the Government of India in September 2014, is an initiative to encourage both national and international companies to manufacture their products in India. The campaign aims to boost manufacturing, improve infrastructure, and create jobs in the country.
Achievements so far:
Steel industry: India has become a net exporter of finished steel, with production up by over 50% since 2014.
Mobile manufacturing: From just two mobile manufacturing units in 2014, India now boasts over 200, with mobile exports skyrocketing by an astonishing 7,500% to ₹1.2 trillion. Today most of the mobile phones used in India are made domestically, making India the second-largest mobile manufacturer in the world.
Semiconductors: Investments worth over ₹1.5 trillion have been made in the semiconductor manufacturing sector, with new plants set to produce more than 70 million chips daily.
Renewable energy & electric vehicles (EVs): India is now the fourth largest producer of renewable energy, with a 400% increase in capacity over the last decade. The electric vehicle industry, almost non-existent in 2014, is now valued at $3 billion.
Defence exports: Defence production exports surged from Rs 1,000 crore to Rs 21,000 crore, with Indian-made products reaching over 85 countries.
What led to such a growth?
- Ease of Doing Business Reforms: The government simplified complex regulations, reduced bureaucratic red tape, and digitized many processes. This helped improve India’s ranking in the Ease of Doing Business index by the World Bank.
- Sectoral Incentives: Specific policies and schemes, such as the Production Linked Incentive (PLI) Scheme, were introduced to incentivize manufacturing in critical sectors like electronics, automotive, and pharmaceuticals.
- Investments in Infrastructure: Substantial investments have been directed towards infrastructure development, encompassing industrial corridors, ports, highways, and smart cities. Notably, initiatives such as the Delhi-Mumbai Industrial Corridor (DMIC) have been implemented to establish connectivity among key industrial and manufacturing centers. Recently, the government unveiled plans to establish 12 new industrial hubs across the nation, aiming to propel the manufacturing sector.
- Geopolitical Factors: Global trade dynamics, such as the US-China trade war and disruptions in global supply chains during the COVID-19 pandemic, led companies to seek alternative manufacturing destinations. With its large market and supportive policies, India emerged as a key option.
- The government has actively attracted investments through roadshows, industry meetings, and participation in global forums, creating awareness and confidence among investors. Hosting events like the G20 and Cricket World Cup has also added to its achievements.
These collective efforts led to a positive transformation in India’s manufacturing sector, establishing the “Make in India” campaign as a visible success with initial investment inflows.