Twelve years after its launch, Make in India has become an important part of India’s manufacturing and industrial development story. Launched on September 25, 2014, the initiative was conceived with the objective of making India a global hub for manufacturing, design and innovation.
Over time, its scope has expanded beyond simply encouraging companies to manufacture products in India. The broader focus has increasingly included domestic value addition, technology development, supply-chain resilience, infrastructure, exports, skills and the creation of capabilities that can support long-term industrial growth.
Make in India currently covers 27 sectors, including 15 manufacturing and 12 services sectors. Government programmes such as the Production Linked Incentive (PLI) schemes, PM GatiShakti, the National Single Window System and the India Industrial Land Bank have been used alongside sector-specific policies to strengthen the manufacturing ecosystem.
The scale of change is visible across several industries. Electronics production, mobile-phone manufacturing, automobiles, pharmaceuticals, steel, defence equipment and renewable-energy components have all expanded significantly.
At the same time, India is attempting to move deeper into technologically intensive areas such as semiconductors, electronic components, advanced materials and specialised machinery.
Make in India: How India Is Entering a New Era of Manufacturing Growth
The original Make in India vision focused heavily on attracting investment and encouraging companies to manufacture in the country. Over the past 12 years, however, the manufacturing agenda has become broader.
The emphasis is increasingly on developing an end-to-end industrial ecosystem. This means not only assembling a finished product but also producing components, sub-assemblies, machinery, tools and other inputs domestically.
This distinction is important because a manufacturing economy becomes more resilient when more stages of the production process are located within the country. It can reduce exposure to disruptions in international supply chains while creating opportunities for domestic suppliers and smaller businesses.
The government’s latest assessment says manufacturing GVA at constant prices recorded a 10.88% compound annual growth rate between 2022-23 and 2025-26 under the revised national accounts series. The manufacturing component of the Index of Industrial Production also grew 7% during April-July 2026 compared with the corresponding period of 2025.
One of the clearest examples of India's changing manufacturing landscape is electronics.
In 2014-15, electronics production in India was valued at approximately ₹1.9 lakh crore. By 2025-26, it had increased to around ₹13.11 lakh crore, representing almost seven times the earlier level. Electronics exports also increased from roughly ₹38,000 crore to ₹4.24 lakh crore during the same period.
Mobile phones have played a particularly important role in this transformation. Production increased from approximately ₹18,000-18,900 crore in 2014-15 to about ₹6.27-6.3 lakh crore in 2025-26.
India is now the world’s second-largest mobile-phone manufacturing country by volume. Mobile-phone exports have also increased substantially, reaching approximately ₹2.59 lakh crore in 2025-26, compared with around ₹1,500 crore in 2014-15.
The change is also visible in the depth of the ecosystem. India has moved from primarily assembling finished phones towards manufacturing sub-assemblies and components. Government data indicates that more than 40 major component manufacturers have established or expanded operations in the country, alongside a growing network of Tier-2, Tier-3 and Tier-4 suppliers.
The growth of electronics manufacturing does not mean that every component is already produced domestically. Government-industry estimates put domestic value addition in electronics manufacturing at around 18-20% currently. This makes the next phase particularly important: increasing the production of components, semiconductors, materials, machinery and other inputs within India.
The Electronics Components Manufacturing Scheme and semiconductor-related programmes are therefore aimed at deepening the manufacturing chain rather than focusing only on final assembly.
The automobile sector is another major pillar of India's manufacturing economy.
India produced approximately 31.03 million vehicles in 2024-25, around 33% higher than the level recorded in 2014-15. Compared with 2020-21, passenger-vehicle and commercial-vehicle production each increased by 65%, while three-wheelers increased by 71% and two-wheelers by 30%.
India also has a large domestic auto-component ecosystem, providing a foundation for both conventional and electric mobility.
The transition towards electric vehicles is adding another dimension to the sector. Government programmes are increasingly focusing on electric mobility, advanced automotive technologies, batteries, motors and other components. The PLI scheme for automobiles and auto components had attracted ₹44,326 crore in investment by March 2026, according to government data.
The long-term manufacturing opportunity therefore extends beyond producing vehicles. It includes the technologies and components required for the next generation of mobility.
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India's pharmaceutical sector has long been an important part of its industrial and export economy. The sector's annual turnover reached approximately ₹5.08 lakh crore in 2025-26, while pharmaceutical exports stood at around ₹2.63 lakh crore.
The manufacturing story is also expanding into medical devices. Domestic medical-device manufacturing increased from approximately ₹28,000 crore in 2019-20 to ₹41,500 crore in 2024-25, according to government figures.
This shift is significant because medical devices require capabilities in engineering, electronics, materials, precision manufacturing and quality control. Building these capabilities domestically can contribute to a broader industrial ecosystem rather than supporting only one product category.
Steel is another area where production capacity has expanded substantially. India's crude-steel production increased from 81.7 million tonnes in 2014-15 to 170 million tonnes in 2025-26.
Steel is particularly important because it supports numerous downstream sectors, including automobiles, construction, infrastructure, engineering and defence.
Defence manufacturing has also become increasingly important to the domestic manufacturing strategy. India's annual defence production reached a record ₹1.78 lakh crore in 2025-26, up from ₹1.54 lakh crore in the previous year.
Government data also shows that private-sector participation increased, with the private sector accounting for about 24% of production in 2025-26. Defence exports reached ₹38,424 crore during the same financial year.
The objective is not simply to produce more defence equipment domestically but also to develop capabilities in design, engineering, electronics, aerospace and specialised components.
One of the more significant developments in India's manufacturing journey is the growing focus on technologies designed and developed domestically.
A notable example comes from India's space programme. ISRO and the Semiconductor Laboratory (SCL), Chandigarh, developed the VIKRAM3201 and KALPANA3201 32-bit microprocessors for space applications. VIKRAM3201 is described by ISRO as the first fully Make-in-India 32-bit processor qualified for the harsh environmental conditions of launch vehicles. It was fabricated at SCL's 180nm semiconductor facility.
This illustrates a different dimension of manufacturing growth. The objective is increasingly to develop intellectual property, specialised engineering expertise and critical technologies within India.
Renewable-energy manufacturing is another area where India's industrial capacity has grown.
Solar-module manufacturing capacity increased from 2.3 GW in 2014 to 192 GW by June 2026. Solar-cell manufacturing capacity increased from approximately 1.2 GW to around 30 GW over the same period.
The expansion is relevant not only to renewable-energy deployment but also to supply-chain security. Solar modules and cells are important inputs for India's growing clean-energy sector, and domestic manufacturing can provide an additional industrial base for the renewable-energy economy.
The next stage involves strengthening domestic production of upstream materials, cells, specialised equipment and other components.
The Production Linked Incentive (PLI) programme has become one of the major policy instruments supporting Make in India.
PLI schemes cover 14 sectors, including electronics, pharmaceuticals, automobiles, solar photovoltaic modules, specialty steel and textiles. The programme is designed to encourage incremental production and investment by linking incentives to specified manufacturing outcomes.
By June 2026, government data showed that the schemes had attracted approximately ₹2.6 lakh crore in investment, generated ₹23.8 lakh crore in production and sales, supported more than ₹15.5 lakh crore in exports, and contributed to around 14.6 lakh jobs.
The figures indicate the scale of investment associated with the programme. At the same time, the longer-term significance of PLI will depend on how effectively participating sectors develop sustainable manufacturing capabilities, domestic suppliers, technology and export competitiveness.
The manufacturing strategy is also expanding into areas considered important for future industrial resilience.
Government initiatives have increasingly focused on semiconductors, rare-earth permanent magnets, electronics components, specialty steel and industrial parks.
Rare-earth permanent magnets are particularly relevant because they are used in electric vehicles, renewable-energy systems, electronics and advanced manufacturing. A pilot plant for neodymium-iron-boron permanent magnets was established at ARCI, Hyderabad, in March 2026 to support technology validation, process development and industrial collaboration.
Semiconductor manufacturing is another strategic priority. The expansion of semiconductor capabilities can potentially support industries ranging from automobiles and telecommunications to consumer electronics, defence and industrial equipment.
The government's broader approach is therefore increasingly focused on critical technologies and materials that influence multiple industries.
Manufacturing growth cannot depend on factories alone. Companies also require industrial land, roads, ports, power, logistics networks, skilled workers and timely approvals.
The India Industrial Land Bank had mapped approximately 4,220 industrial parks covering about 6.98 lakh hectares by May 2026. Around 1.33 lakh hectares remained available for future industrial expansion, while approximately 272 plug-and-play industrial parks were operational.
The National Single Window System (NSWS) is another part of this infrastructure. As of the latest government figures, the platform provides access to more than 327 Central approvals and 3,452 State approvals across 34 States and Union Territories.
For investors, simplifying approvals and making industrial land information easier to access can reduce some of the procedural challenges involved in establishing manufacturing facilities.
PM GatiShakti seeks to improve coordination in infrastructure planning by bringing different transport and infrastructure networks into an integrated planning framework. Better connectivity between factories, ports, warehouses, highways, railways and markets can reduce logistics constraints.
For manufacturing companies operating in global supply chains, reliability and delivery times can be as important as production costs. Therefore, India's manufacturing strategy increasingly combines industrial policy with infrastructure and logistics development.
A manufacturing expansion also creates demand for workers with different levels of technical expertise.
The manufacturing sector now contributes roughly 16-17% of GDP and employs more than 27 million workers, according to a 2026 government factsheet.
The nature of employment is also changing. Modern factories require technicians, engineers, quality-control specialists, software professionals, machine operators, supply-chain experts and maintenance personnel.
Electronics manufacturing provides an example. Government data indicates that the electronics manufacturing ecosystem supports around 25 lakh jobs, with mobile manufacturing accounting for roughly 12 lakh of them.
Building a workforce capable of operating increasingly sophisticated production systems will therefore remain an important part of India's manufacturing ambitions.
Perhaps the most important long-term change associated with Make in India is the gradual movement from assembly towards greater domestic capability.
Producing a finished product in India is one step. Producing its components, developing the underlying technology, designing the product, manufacturing the machinery and building the supporting supplier network represents a deeper level of industrialisation.
The electronics sector demonstrates this transition particularly clearly. India began by expanding finished-product manufacturing and is now attempting to strengthen sub-assemblies, components, materials, tools and production equipment.
Similar developments are visible in automobiles, defence, renewable energy, pharmaceuticals and advanced engineering.
The progress of the past 12 years does not mean that India's manufacturing journey is complete.
The next phase will require continued improvements in productivity, research and development, domestic value addition, workforce skills, infrastructure and access to advanced technologies. Indian manufacturers also operate in a competitive global environment where production decisions are influenced by costs, quality, technology, trade policy and supply-chain reliability.
Increasing the participation of MSMEs in larger manufacturing supply chains will also be important. Smaller firms can become suppliers of components and services to major manufacturers, but they may need better access to technology, finance, skills and markets.
The transition from assembly-led growth to deeper manufacturing will therefore require sustained investment across the entire industrial ecosystem.
The manufacturing story that has emerged since 2014 is broader than an increase in factory output.
Electronics production has expanded dramatically. Automobile and pharmaceutical manufacturing has grown. Steel production has more than doubled since 2014-15. Defence production has reached a record level. Solar manufacturing capacity has expanded sharply, while semiconductor and advanced-component capabilities are receiving greater policy attention.
Together, these developments point towards an industrial strategy in which India seeks to serve both its large domestic market and international markets.
The emergence of India as a manufacturing location also has implications for global companies looking to diversify their supply chains. A larger domestic supplier base, improving infrastructure and expanding production capabilities can provide a foundation for greater participation in international value chains.
Twelve years after Make in India was launched, its manufacturing story has moved beyond the simple objective of producing more goods domestically. The emphasis is increasingly on creating capabilities—from components and machinery to technology, skills, infrastructure and supply chains.
The numbers across electronics, mobile phones, automobiles, pharmaceuticals, steel, defence and solar manufacturing demonstrate the scale of expansion. Meanwhile, initiatives covering semiconductors, rare-earth materials, industrial parks, electronics components and advanced technologies indicate the direction of the next phase.
The longer-term significance of Make in India will depend on whether this expanding production base continues to generate greater domestic value addition, technological capability, exports and productive employment.
For India, the next stage is therefore not simply about making more products. It is about building an industrial ecosystem capable of designing, developing, manufacturing and exporting increasingly sophisticated products from India. That broader transition will determine how the country's manufacturing landscape evolves in the years ahead.