Make in India UPSC Notes: Objectives, Key Schemes, Achievements & More

The Make in India initiative was launched by the Government of India in September 2014 to transform India into a global design, manufacturing, and innovation hub. The initiative focuses on attracting foreign investment, fostering skill development, promoting innovation, and protecting intellectual property rights. Both the Central and State governments actively facilitate this program to strengthen India’s manufacturing base. The Ministry of Commerce and Industry’s Department of Industrial Policy and Promotion (DIPP) is the nodal ministry driving this initiative.

This topic Make in India UPSC is one of the important topics for UPSC Civil Service Examination. Read the entire article on Make in India UPSC to know all about the initiative.

Download the Key Takeaways on Make in India UPSC PDF Notes

What is Make in India?

The Make in India program is a flagship government initiative to establish India as a global manufacturing hub. Launched in 2014, the initiative targets 25 key sectors, including automobiles, electronics, pharmaceuticals, and defense. Its aim is to boost domestic production and attract Foreign Direct Investment (FDI).

Initially, India faced global skepticism as part of the “Fragile Five” economies, raising concerns over whether India’s vast population of 1.4 billion would be a challenge or an opportunity for investors. The Make in India program was conceived as a strategic push to revive industrial growth, create employment, and strengthen economic resilience.

Objectives of Make in India Scheme

The Make in India program seeks to achieve the following:

1. Boost Manufacturing Growth – Targeting 12–14% annual growth in manufacturing.
2. Increase GDP Share – Raising the manufacturing sector’s contribution to GDP from 16% to 25% by 2025.
3. Employment Generation – Creating 100 million additional manufacturing jobs by 2022.
4. Global Competitiveness – Attracting both domestic and international investment.
5. Innovation and Skill Development – Enhancing capabilities across sectors to support Industry 4.0.

Study about Digital India here.

Sectors Included Under the Make in India Scheme

The Make in India initiative initially covered 25 sectors, which were later expanded to 27 sectors under Make in India 2.0. These sectors aim to boost manufacturing, investment, and employment across India:

1. Automobiles & Auto Components
2. Aviation & Aerospace
3. Biotechnology
4. Chemicals & Pharmaceuticals
5. Construction & Real Estate
6. Defence Manufacturing
7. Electrical Machinery
8. Electronics Systems & Information Technology
9. Food Processing
10. Leather & Garments
11. Media & Entertainment
12. Mining & Minerals
13. Oil & Gas
14. Ports & Shipping
15. Railways & Road Infrastructure
16. Renewable Energy
17. Space & Satellite Technology
18. Thermal Power & Energy
19. Tourism & Hospitality
20. Wellness & Healthcare

Note: The remaining sectors in the expanded Make in India 2.0 include Textiles and IT & BPM (Business Process Management), completing the 27-sector framework.

Also, study about the Skill India Mission from the linked article.

Factors on which the Success of Make in India is Dependent

Investment: Private sector investment in India has been sluggish, which remains a key obstacle for the success of Make in India. The share of Gross Fixed Capital Formation in GDP fell from 31.3% in 2013–14 to 28.6% in 2017–18, indicating a slowdown in spending on long-term productive assets.
 

Manufacturing Output: Growth in industrial production has been uneven. The manufacturing sector experienced double-digit growth only twice between April 2012 and November 2019, reflecting inconsistency in production levels.
 

Employment:  India’s unemployment rate has reached a 45-year high, pointing to rising joblessness. At the same time, industrial employment growth has not kept pace with the increasing number of people entering the labor market, limiting the initiative’s impact on creating jobs.

Also, study about the Pradhan Mantri Mudra Yojna from the linked article.

Initiatives under the Make In India Scheme

The government has taken multiple steps to make Make in India successful:

• Sectors like railways, defense, insurance, and medical devices have been opened for FDI.
• Defense FDI limit increased from 49% to 74% (May 2020).
• 100% FDI under the automatic route permitted for construction and specified rail infrastructure projects.
• Investor Facilitation Cell (IFC) created to support investors from entry to exit.
• Steps taken to improve India’s Ease of Doing Business, achieving 77th rank in 2019, highest in South Asia.
• Portals such as eBiz and Shram Suvidha for single-window access to permits and licenses.
• Reforms in property registration, taxation, power connections, and contract enforcement.
• Promotion of PPP models to improve physical infrastructure, including airports and ports.
• Development of 5 industrial corridors for inclusive industrialization:
   
  • Delhi-Mumbai Industrial Corridor (DMIC)
  • Amritsar-Kolkata Industrial Corridor (AKIC)
  • Bengaluru-Mumbai Economic Corridor (BMEC)
  • Chennai-Bengaluru Industrial Corridor (CBIC)
  • Vizag-Chennai Industrial Corridor (VCIC)

Learn more about the International Solar Alliance!

Key Schemes under the Make In India Program

To support the Make in India campaign, there are various key schemes launched by the Government of India. Some of these schemes are as listed below:

1. Skill India Mission

Aims to upskill India’s workforce, increasing the percentage of formally skilled workers beyond the current 2% through training in sectors aligned with Make in India.

2. Startup India

Supports startup growth through a 19-point action plan, including:

• Self-certification compliance
• Single Point of Contact via Startup India Hub
• Legal support and patent fee reduction
• Simplified exit and public procurement norms
   

3. Digital India

Focuses on digital transformation, offering services like:

• BHIM UPI for seamless payments
• MyGov.in for citizen engagement
   

4. Pradhan Mantri Jan Dhan Yojana (PMJDY)

Promotes financial inclusion, providing bank accounts, credit, insurance, and pension benefits to over 44 crore beneficiaries.

5. Smart Cities

Creation of 100 smart cities with robust infrastructure, urban mobility, sanitation, and IT connectivity.

6. AMRUT

Atal Mission for Rejuvenation and Urban Transformation for basic urban amenities in 500 cities.

7. Swachh Bharat Abhiyan

Promotes sanitation and hygiene, targeting 100 million rural toilets by October 2019.

8. Sagarmala

Improves port performance and logistics infrastructure.

9. International Solar Alliance (ISA)

Promotes solar technology R&D and deployment among member countries.

10. AGNII

Accelerates innovation commercialization and builds a robust R&D ecosystem.

Also read: Priority sector lending for UPSC here!

Achievements of the Make in India initiative

• • Manufacturing Contribution: The share of manufacturing in India’s GDP grew from 16% in 2014 to 19% in 2023, and further strengthened by 2025, reflecting sustained sectoral growth.
     
  • Employment Generation: Over 10 million direct jobs were created by 2023, with additional employment opportunities emerging in renewable energy, electronics, and defense sectors by 2025.
     
  • Foreign Direct Investment (FDI): FDI inflow reached $85 billion in 2023, with global giants like Apple, Samsung, Amazon, and Tesla expanding operations. By 2025, investments continued to rise due to PLI schemes and sectoral reforms.
     
  • Electronics Manufacturing: India became the second-largest mobile phone manufacturer globally. By 2025, electronics production expanded to include consumer electronics, semiconductors, and display panels.
     
  • Automobile Production: Automobile manufacturing exceeded 30 million vehicles in 2023, supported by FAME and EV-focused policies. By 2025, India emerged as a hub for electric and hybrid vehicles.
     
  • Defence Manufacturing:  Indigenous defense production crossed $10 billion contracts for domestic firms. By 2025, several import substitution projects were underway, enhancing self-reliance in defense equipment.
     
  • Production-Linked Incentive (PLI) Schemes: PLI schemes spurred $27 billion of investments across 13 sectors by 2023. By 2025, PLI coverage expanded to additional sectors like textiles, chemicals, and battery manufacturing.
     
  • Ease of Doing Business:  India’s ranking improved from 63rd in 2019 to 55th in 2023, with continued reforms in 2025 further simplifying licenses, approvals, and compliance procedures.
     
  • Infrastructure Development:  Industrial corridors such as the Delhi–Mumbai Industrial Corridor (DMIC), smart cities, and logistics networks strengthened infrastructure. By 2025, new corridors in Eastern and Southern India enhanced connectivity and industrial growth.
     

• Sectoral Growth and Global Recognition

Renewable energy manufacturing expanded with solar panels and wind turbine production.

Healthcare, pharmaceuticals, and biotechnology saw increased domestic manufacturing and export potential.

• India gained global recognition as a reliable manufacturing destination across multiple sectors.

Learn more about the International Solar Alliance!

Challenges Faced by the Make in India Scheme

Some of challenges which are faced by make in India scheme are listed below:

• FDI from shell companies – Major FDI inflows from Mauritius-based firms may involve black money, reducing direct foreign investment quality.
• Small industries – Lack economies of scale and modern equipment.
• Complex labor laws – Industrial Disputes Act, 1947 complicates layoffs.
• Electricity reliability – Frequent outages compared to China.
• Transportation inefficiency – Average freight speeds lower than global standards.
• Bureaucracy & corruption – Hinders investment despite improved Ease of Doing Business rank.

Make in India 2.0

"Make in India 2.0" has expanded its focus to include 27 key sectors, compared to the original 25 sectors. New additions include sectors like renewable energy, robotics, artificial intelligence, and genomics.

• Expanded to 27 sectors, adding renewable energy, robotics, AI, and genomics.
   
• Focus on strengthening traditional sectors and upgrading technology.
   
• Streamlined regulations, corporate tax for new units reduced to 15%.
   
• Enhanced infrastructure with industrial corridors, smart cities, and logistics parks.
   
• Digital India integration for Industry 4.0 adoption and cybersecurity.
• Promotion of green manufacturing and renewable energy use.
• PLI schemes extended to more sectors with increased investment limits.
• Skill development programs targeting 10 million workers by 2025.
   

Make in India 3.0 (Proposed)

A significant boost to R&D spending, with special incentives for companies investing in cutting-edge research in high-tech areas like biotechnology, robotics, and quantum computing.

• Boost R&D spending in biotechnology, robotics, and quantum computing.
• Aggressive export promotion via EPCG schemes and export zones.
• Strengthen global supply chain integration with trade partnerships.
• Align urban planning with manufacturing needs.
• Develop mechanisms for supply chain resilience against global disruptions.

Study about the Mid-Day Meal Scheme here.

Conclusion

Make in India aims to transform India into a global manufacturing and innovation hub by attracting investments, boosting domestic production, generating employment, and promoting technology-driven growth. Despite challenges like labor laws and infrastructure gaps, initiatives like Skill India, Startup India, and industrial corridors have strengthened the ecosystem. Make in India 2.0 and 3.0 focus on sustainable, tech-enabled, and globally competitive manufacturing for inclusive economic growth.

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