EconomyGS3

Make in India Completes 12 Years, Manufacturing Data Reviewed

PIB·2026-09-25· Read original

"Make in India Completes 12 Years, Manufacturing Data Reviewed"

Prelims Facts

  • •Make in India was launched on 25 September 2014; Make in India 2.0 now covers 27 sectors (15 manufacturing, 12 services).
  • •India permits 100% FDI via the automatic route in most sectors, excluding certain specified strategic sectors.
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Key Terms

Make in India

Government initiative launched in 2014 to boost manufacturing, design and innovation in India.

Automatic Route (FDI)

Foreign investment permitted without prior government approval.

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Study Note

BackgroundCore Concept

Background

Colonial rule dismantled traditional Indian manufacturing. Cheap machine-made British textiles ruined Indian handicrafts in the early nineteenth century, and India was reduced to a supplier of raw materials for British industry. After independence, five-year plans pursued industrialisation through import substitution and a large public sector. Excessive licensing and protection from foreign competition left many firms uncompetitive and slowed export growth. The economic reforms of 1991 opened India to global trade and investment. In 2011, the National Manufacturing Policy carried this further through measures such as National Investment and Manufacturing Zones (NIMZs), single-window clearance for investors, and the Technology Acquisition and Development Fund (TADF) to help firms adopt cleaner and more efficient technology. These measures were direct precursors to Make in India, launched on 25 September 2014, with the goal of making India a global hub for manufacturing, design and innovation, guided by the principle of "Minimum Government, Maximum Governance."

The initiative was later widened into Make in India 2.0, which now spans 27 sectors, comprising 15 manufacturing sectors and 12 service sectors. This reflects a shift from a narrow focus on factory output toward a broader ecosystem covering investment facilitation, infrastructure and regulatory simplification.

The Topic Explained

Make in India works through three broad levers: liberalising investment rules, simplifying regulatory processes, and building sector-specific infrastructure and support. On investment, India now permits 100% FDI through the automatic route in most sectors, with prior government approval required only in specified strategic sectors. This liberalisation, combined with later schemes such as the Production-Linked Incentive (PLI) scheme, has driven large gains in electronics and mobile-phone assembly.

The initiative's reach extends across both final-product manufacturing and the upstream ecosystem of components, machinery and materials. …

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Related PYQs

2012GS1 Prelims

What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

1.Setting up of National Investment and Manufacturing Zones

2.Providing the benefit of 'single window clearance'

3.Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below:

A1 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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2020GS1 Prelims

Which of the following statements correctly explains the impact of Industrial Revolution on India during the first half of the nineteenth century?

AIndian handicrafts were ruined.
BMachines were introduced in the Indian textile industry in large numbers.
CRailway lines were laid in many parts of the country.
DHeavy duties were imposed on the imports of British manufactures.
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2023GS3 Mains

Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.

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Practice MCQs

Economyhard

Match List-I (Initiative under the National Manufacturing Policy, 2011) with List-II (Primary Objective) and select the correct answer using the codes given below:

List-I

A.National Investment and Manufacturing Zones (NIMZs)

B.Single-Window Clearance

C.Technology Acquisition and Development Fund (TADF)

List-II

1.Integrated industrial townships to promote manufacturing growth

2.Reduce regulatory and procedural delays for investors

3.Support acquisition of clean and efficient technologies by domestic industry

AA-1, B-2, C-3
BA-2, B-1, C-3
CA-1, B-3, C-2
DA-3, B-2, C-1
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Economyeasy

Consider the following statements about 'Make in India':

1.It was launched in 2014 with the objective of making India a global hub for manufacturing, design and innovation.

2.Under 'Make in India 2.0', the initiative covers 27 sectors comprising 15 manufacturing sectors and 12 service sectors.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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Economymedium

Consider the following statements:

1.India is the world's second-largest mobile phone manufacturer by volume.

2.India's pharmaceutical industry ranks first in the world by volume of production.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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Economyeasy

Which one of the following best describes India's current FDI policy for most manufacturing sectors under 'Make in India'?

A100% FDI is permitted through the automatic route, except in specified strategic sectors
BFDI is capped at 49% across all manufacturing sectors
CAll FDI proposals require prior government approval
DFDI is prohibited in electronics and pharmaceuticals manufacturing
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Economymedium

The pilot plant for Neodymium-Iron-Boron (Nd-Fe-B) rare-earth permanent magnets, important for electric vehicles and renewable energy technologies, has been set up at which of the following institutions?

AInternational Advanced Research Centre for Powder Metallurgy and New Materials (ARCI), Hyderabad
BNational Metallurgical Laboratory, Jamshedpur
CBhabha Atomic Research Centre, Mumbai
DIndian Institute of Science, Bengaluru
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