Guided by ‘Minimum Government, Maximum Governance’, Make in India initiative focused on facilitating investment, fostering innovation and developing world-class infrastructure to promote manufacturing in India.
Achievements of Make in India
- Electronics: Production increased from ~₹1.9 lakh crore to ~₹13.11 lakh crore in 2025-26.
- Pharmaceuticals: India’s pharmaceutical industry ranks 3rd globally by volume.
- Steel: Crude steel production increased from 81.7 million tonnes to 170.0 million tonnes in 2025-26.
- Defence: Value of indigenous defence production increased from ₹46,429 crore to a record ₹1.78 lakh crore in FY 2025-26.
- Capital Goods: Production increased nearly twofold from ₹2,87,233 crore in 2019-20 to ₹5,69,900 crore in 2024-25.
Shortcomings in Make in India
- Marginal Improvement: Manufacturing sector’s share in overall GVA increased marginally from 14.6% in 2022-23 to 15.6% in 2025-26.
- Flattening Exports: Share in global goods exports has flattened since 2014-15 and remained at nearly 1.7% in 2025-26.
- Falling Gross Fixed Capital Formation (GFCF): GFCF by the private sector as a percentage of GDP has fallen from 25.1% in 2022-23 to 23.9% in 2025-26.
- Underused Capacity: RBI’s data on capacity utilisation is still below 80% mark (above which companies invest to create new capacity).
- Skewed Credit Growth: Absence of sustained rapid growth in output suggests loans are being taken to provide working capital rather than fresh investments.
- Stagnant Employment: Manufacturing sector’s share in total employment was largely the same in 2025-26 (12.1%) as in a decade earlier.
