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Make in India

Government initiative to encourage manufacturing in India

  • 11 min read
  • 4 chapters

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Through Government of India, Manufacturing and Investment

Assessed against its own stated target of increasing the share of manufacturing in GDP to 25% by 2022, then by 2025, and creating 100 million jobs, the program has been unsuccessful. The manufacturing sector's contribution to India's GDP has fallen from 16.7% in FY2013–2014 to 15.9% in FY2023–2024.

Objectives and achievements

Announced in 2014, "Make in India" had three stated objectives:

  1. to increase the manufacturing sector's growth rate to 12-14% per annum;
  2. to create 100 million additional manufacturing jobs in the economy by 2022;
  3. to ensure that the manufacturing sector's contribution to GDP is increased to 25% by 2022 (later revised to 2025).

Assessed against these targets, the program has not been successful. Manufacturing's share of GDP, a flagship metric of the initiative, has actually fallen to 15.9% in FY 2023–24 from 16.7% in FY 2013—14. From 2014 to 2025, India's value-added manufacturing CAGR has been less than 6.9%, turning negative twice—in 2019 due to COVID-19, and in 2022. The estimated indicator for employment in industry (as % of total employment) has risen by less than one percent.

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