Overview of the Make in India Campaign: 12 Years On
The Make in India campaign, launched on September 25, 2014, aimed to boost the manufacturing sector's contribution to economic growth, employment, and exports. After 12 years, key metrics reveal mixed results.
Economic Growth and Manufacturing
- The manufacturing sector grew faster than the overall economy in five out of 12 years using the old data series.
- Under the new series, the sector outpaced overall growth in all three available years (2023-24 to 2025-26), but the growth gap is shrinking.
- According to the Index of Industrial Production (IIP), the manufacturing sector outpaced overall growth in only three of the 12 years under the old series, with slower growth in subsequent years.
Contribution to Gross Value Added (GVA)
- The manufacturing sector's share in overall GVA decreased from 2014 to 2025-26 according to the old series.
- The new series shows a marginal increase in the sector's share from 14.6% in 2022-23 to 15.6% in 2025-26.
Exports and Global Share
- Non-petroleum goods exports increased by 53% from $253.5 billion in 2014 to $388.3 billion in 2025-26.
- India's global merchandise export share remained stagnant at 1.7% in 2025-26, despite growing from 0.8% in 2002 to 1.7% in 2013.
Investment and Foreign Direct Investment (FDI)
- The gross fixed capital formation by the private sector decreased as a share of GDP from 2014-15 to 2023-24.
- FDI growth in the manufacturing sector lagged behind overall FDI in seven of the 12 years.
- The sector's share in overall FDI increased from nearly 48% in 2014-15 to 55% in 2025-26.
Employment and Capacity Utilization
- The manufacturing sector's employment increased from 5.1 crore in 2016-17 to 5.3 crore in 2025-26.
- Capacity utilization in factories has been rising slowly but remains below the 80% threshold needed for new capacity investment.
Impact of Production-Linked Incentive Schemes
- The government's 14 Production-Linked Incentive schemes, launched in 2020 and 2021, resulted in a cumulative investment of Rs 2.4 lakh crore by March 2026.
- Investment is concentrated in five sectors: solar modules, pharmaceutical drugs, automobiles and their components, specialty steel, and large-scale electronics manufacturing — accounting for 83% of the total.
- Employment under these schemes is concentrated, with more than 86% in food products, large-scale electronics, pharmaceuticals, automobiles, and white goods sectors.
- An additional 5.7 lakh of indirect employment was generated in large-scale electronics, IT hardware, and solar modules sectors.
