The Role of Make in India in Boosting Manufacturing GDP

India’s manufacturing sector has undergone a transformational shift over the past decade, largely due to the Make in India initiative launched in 2014. As a flagship program by the Indian government, Make in India aims to position the country as a global manufacturing hub, reduce dependence on imports, attract foreign investment, and create millions of jobs. Today, this initiative plays a pivotal role in enhancing India’s Manufacturing GDP, contributing significantly to its economic growth and industrial output.

In this blog, we will explore how Make in India has reshaped the industrial landscape, improved manufacturing performance, and attracted global investors, while creating fertile ground for sourcing agents, suppliers, and exporters.

What Is Make in India?

Launched by the Ministry of Commerce and Industry, Make in India is a nationwide initiative designed to facilitate investment, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure across 25 key sectors including:

• Automobiles and auto components

• Electronics and semiconductors

• Textiles and garments

• Pharmaceuticals and medical devices

• Chemicals

• Defense manufacturing

Learn more at the official portal: makeinindia.com

The Impact on India’s Manufacturing GDP

India’s manufacturing GDP has seen consistent growth, rising from $300 billion in 2014 to over $500 billion in 2023, accounting for approximately 17% of India’s total GDP. Make in India has been central to this growth due to:

1. Ease of Doing Business Reforms

India jumped from 142nd in 2014 to 63rd in 2020 in the World Bank’s Ease of Doing Business rankings. Government efforts to simplify:

• Licensing processes

• Taxation systems (e.g., GST)

• Import/export procedures

• Industrial land allocation

have attracted both foreign direct investment (FDI) and encouraged domestic production.

📌 India’s Ease of Doing Business Ranking

2. FDI Growth in Manufacturing

Since Make in India began, India has attracted record levels of FDI in manufacturing:

• $20.6 billion in 2022–2023 alone (manufacturing-specific)

• Key contributors: Japan, Singapore, USA, Germany, South Korea

• Sector focus: Electronics, EVs, defense, chemicals, and food processing

These investments lead to technology transfer, increased capacity, and enhanced productivity, all contributing to a larger GDP share from manufacturing.

3. Infrastructure Development via Industrial Corridors

Major industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), and Amritsar-Kolkata Industrial Corridor (AKIC) are being developed with smart cities, integrated logistics parks, and plug-and-play infrastructure.

These corridors:

• Improve regional connectivity

• Reduce logistics costs

• Promote cluster-based development

🚚 Learn more: India’s Industrial Corridors

4. PLI Schemes: Accelerating Growth

The Production-Linked Incentive (PLI) schemes across 14 sectors including mobile phones, solar panels, pharma, and semiconductors have incentivized companies to manufacture more domestically.

Outcomes include:

• Over ₹2 lakh crore worth of production

• Employment generation across tier-2 and tier-3 cities

• Global brands setting up plants in India (e.g., Apple, Samsung, Tata Electronics)

📊 PLI Scheme Details – PIB India

5. Boosting MSMEs and Local Supply Chains

Make in India emphasizes local sourcing and empowers Micro, Small, and Medium Enterprises (MSMEs) through:

• Credit access

• Government e-Marketplace (GeM) procurement

• Skill development programs

• Technology upgradation schemes

This strengthens domestic value chains and drives decentralized industrial growth, feeding into India’s overall GDP.

✅ Explore sourcing services: India-Agent.com/product-sourcing

Key Sectors Benefiting from Make in India

📱 Electronics Manufacturing

India has become the second-largest mobile phone manufacturer in the world. Companies like Foxconn, Lava, and Dixon are expanding production, supported by subsidies, SEZs, and component ecosystem development.

💊 Pharmaceuticals

India is now the world’s third-largest pharma producer by volume, supported by Make in India policies focused on bulk drug parks and biosimilar incentives.

🚗 Automotive and EVs

Make in India has led to India becoming a global hub for automobile exports, including two-wheelers and electric vehicles, driven by companies like Tata Motors, Ola Electric, and Mahindra.

🛡️ Defense Production

FDI caps have been raised, and private players are entering defense manufacturing. Indigenous production is rising with initiatives like “Atmanirbhar Bharat.”

The Role of Agents in Supporting Make in India

Foreign businesses entering India under Make in India policies benefit immensely by partnering with local Indian agents, who provide:

• Supplier and manufacturer matchmaking

• Compliance guidance (e.g., PLI eligibility, GST, BIS)

• On-ground factory inspection

• B2B negotiation and quality control

• Coordination with logistics and government departments

📩 Start with a trusted partner: India-Agent.com/contact

Challenges and Future Outlook

While Make in India has made remarkable progress, some challenges persist:

• Delays in land acquisition and environmental clearances

• Inconsistent state-level regulations

• High logistics costs (still ~13% of GDP)

However, government measures like the National Logistics Policy, Digital India, and Gati Shakti Master Plan aim to address these issues.

The target: Make manufacturing contribute 25% of India’s GDP by 2025 and make India one of the top 3 global manufacturing destinations.

Conclusion: Make in India = Make with Opportunity

Make in India is more than a slogan—it’s a strategic driver of India’s economic transformation. By fostering investment, innovation, infrastructure, and inclusion, it has boosted India’s manufacturing GDP, generated employment, and made the country a compelling choice for businesses worldwide.

Whether you’re a product brand, an investor, or a trader, India’s manufacturing rise under the Make in India umbrella offers unparalleled opportunities. And the best way to tap into this growth is through experienced local agents who understand the pulse of Indian industry.

✅ Explore agent support for manufacturing: India-Agent.com