{"id":26991,"date":"2024-02-13T08:54:03","date_gmt":"2024-02-13T08:54:03","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=26991"},"modified":"2024-02-13T08:54:05","modified_gmt":"2024-02-13T08:54:05","slug":"upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/","title":{"rendered":"UPSC Mains &#8211; Analyze the impact of the &#8216;Make in India&#8217; initiative on India&#8217;s manufacturing sector and its contribution to economic growth over the past decade."},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png\" alt=\"\" class=\"wp-image-46428\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noopener\" title=\"\">Refer &amp; Earn NOW<\/a><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d3d1fd22f6c\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d3d1fd22f6c\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Introduction\" title=\"Introduction:\">Introduction:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Body\" title=\"Body:\">Body:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Impact_on_Indias_Manufacturing_Sector\" title=\"Impact on India&#8217;s Manufacturing Sector:\">Impact on India&#8217;s Manufacturing Sector:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Contribution_to_Economic_Growth\" title=\"Contribution to Economic Growth:\">Contribution to Economic Growth:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Challenges\" title=\"Challenges:\">Challenges:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Way_Forward\" title=\"Way Forward:\">Way Forward:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-analyze-the-impact-of-the-make-in-india-initiative-on-indias-manufacturing-sector-and-its-contribution-to-economic-growth-over-the-past-decade\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel \u2013&nbsp;here\">Visit our YouTube Channel \u2013&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Launched on September 25, 2014, the &#8216;Make in India&#8217; initiative aimed to boost manufacturing in India and stimulate the economy through targeted investments in manufacturing and services. The initiative set ambitious goals, including increasing the manufacturing sector&#8217;s growth rate, creating additional manufacturing jobs, and raising the sector&#8217;s contribution to GDP.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><img decoding=\"async\" data-src=\"https:\/\/lh7-us.googleusercontent.com\/IHDjBLUIdOHGf-gX9WfO32-SZKOy0YWOgjT9DFaK8jzFu1Wq8kZXEylCvdmJThI-9P3YD9RWjaen9PU-rzlt13jZFdtiJp2x-CxDX2hil1uNwmZfzg4DlYVJjy7vYmIV29PhDVDUhRDkxYX54eMvX6A\" width=\"602\" height=\"223\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" style=\"--smush-placeholder-width: 602px; --smush-placeholder-aspect-ratio: 602\/223;\"><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body\"><\/span>Body:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_Indias_Manufacturing_Sector\"><\/span>Impact on India&#8217;s Manufacturing Sector:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Toys Sector:<\/strong> In FY 22-23, toy imports decreased by 70%, amounting to USD 110 million, while toy exports surged by 636%. This indicates a positive shift in the toy manufacturing sector, reducing import dependency and promoting domestic production.<\/li><li><strong>Production Linked Incentive (PLI) Scheme:<\/strong> The PLI scheme, launched in 2022-23, has been a significant boost to &#8216;Make in India.&#8217; Covering 14 key manufacturing sectors, it provides incentives to promote domestic manufacturing and production.<\/li><li><strong>Electronic Systems: <\/strong>Notable companies like Foxconn, Huawei, Samsung, and others have pledged investments in Indian electronic product manufacturing. Additionally, advancements in AI supercomputing systems were introduced in 2023.<\/li><li><strong>Automobile Components:<\/strong> The automobile sector witnessed a 25% growth in the last decade. Companies like Hitachi expanded their auto-component operations in India, leading to increased employment.<\/li><li><strong>Aviation: <\/strong>Investments and agreements in aviation manufacturing, such as a drone manufacturing plant established by LH Aviation, demonstrate the positive impact on this sector.<\/li><li><strong>Defense Manufacturing: <\/strong>The Ministry of Defense earmarked items for local procurement, and private firms engaged in a \u20b950,000 crore ammunition production project. Collaborations, like discussions with Russia&#8217;s Irkut Corp by HAL, showcase advancements.<\/li><li><strong>Sector Focus: <\/strong>&#8216;Make in India&#8217; concentrates on 25 sectors, attracting significant investments from global players like General Motors, Kia, and Tesla. Plans for an electric bus manufacturing plant and investments by major automakers contribute to sector growth.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contribution_to_Economic_Growth\"><\/span>Contribution to Economic Growth:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>FDI Inflows: <\/strong>India recorded its highest-ever FDI inflow at USD 83.6 billion in 2022-23, reflecting growing investor confidence and a goal to reach USD 100 billion in the current financial year (2023-24).<\/li><li><strong>Export Growth:<\/strong> &#8216;Make in India&#8217; contributed to a 30% increase in exports in FY 2022-23, particularly in electronics, automobiles, and pharmaceuticals, contributing to overall economic expansion.<\/li><li><strong>Manufacturing Sector Growth: <\/strong>The initiative led to a significant increase in the manufacturing sector&#8217;s share in GDP, from 15% to 22.6% by 2021, showcasing its positive impact on the economy.<\/li><li><strong>Construction Sector: <\/strong>&#8216;Make in India&#8217; encourages growth in the construction sector, aiming for an increased GDP contribution from 62%-63% to 70%-75% by 2030.<\/li><li><strong>Tourism &amp; Hospitality, IT, and Automobile Sectors:<\/strong> The initiative has positive effects on multiple sectors, including tourism, IT, and automobiles, contributing to GDP growth and creating employment opportunities.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges\"><\/span>Challenges:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Investment from Shell Companies: <\/strong>Suspicions of black money routing through Mauritius-based shell companies raise concerns regarding the authenticity of FDI inflows.<\/li><li><strong>Low Productivity: <\/strong>Indian factories exhibit subpar productivity levels compared to counterparts in Thailand and China, highlighting the need for skill development.<\/li><li><strong>Small Industrial Units: <\/strong>The size of industrial units hinders economies of scale, limiting investment in modern equipment and affecting supply chain development.<\/li><li><strong>Infrastructure and Transportation:<\/strong> Challenges in electricity supply, transportation infrastructure, and bureaucratic red tape continue to discourage investment in India.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Way_Forward\"><\/span>Way Forward:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8216;Make in India&#8217; aims to create an investor-friendly environment for growth and development. Reforms and initiatives undertaken under this program have already attracted increased investment inflows and contributed to economic growth. The initiative positions Indian businesses to produce goods adhering to global quality standards, aiming not just to be &#8220;Made in India&#8221; but also &#8220;Made for the World.&#8221; Continued efforts to address challenges will be crucial for sustained success.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/free-resources-for-upsc?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Resources\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png\" alt=\"\" class=\"wp-image-42398 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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Mains Answer Writing Practice \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel \u2013&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Launched on September 25, 2014, the &#8216;Make in India&#8217; initiative aimed to boost manufacturing in India and stimulate the economy through targeted investments in manufacturing and services. <\/p>\n","protected":false},"author":17,"featured_media":26525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1643],"tags":[232,515,230],"class_list":["post-26991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains","tag-upsc","tag-upsc-cse","tag-upsc-mains"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/26991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=26991"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/26991\/revisions"}],"predecessor-version":[{"id":26995,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/26991\/revisions\/26995"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/26525"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=26991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=26991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=26991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}