Make in India 2.0: How the Manufacturing Push is Shaping the Economy

India’s journey as a global manufacturing hub has entered a new phase with the rollout of Make in India 2.0—a revitalized strategy to position the country as a top destination for industrial production, innovation, and global trade. Building on the initial campaign launched in 2014, this updated version focuses on key priority sectors, robust policy reforms, and deeper integration into global supply chains.

As India works to become a $5 trillion economy, manufacturing is emerging as a cornerstone of this growth trajectory. This article explores how Make in India 2.0 is reshaping the country’s economic landscape, and why global investors, manufacturers, and exporters are paying close attention.

From Concept to Action: The Evolution of Make in India

The original Make in India initiative was designed to attract foreign direct investment (FDI), boost job creation, and increase manufacturing’s contribution to GDP from 16% to 25%. While the campaign did generate interest, structural inefficiencies, regulatory bottlenecks, and global disruptions (such as COVID-19) slowed its momentum.

Make in India 2.0 goes beyond branding to emphasize execution, sector-specific action plans, technology integration, and global market access. It is aligned with initiatives like:

• Production Linked Incentive (PLI) Schemes

• Atmanirbhar Bharat (Self-Reliant India)

• National Logistics Policy

• PM Gati Shakti – National Master Plan for Infrastructure Development

Target Sectors Leading the Transformation

The revamped Make in India campaign focuses on 27 sectors, including automobiles, electronics, textiles, pharmaceuticals, renewable energy, and defense manufacturing. These sectors have been selected based on their potential for job creation, export expansion, and import substitution.

Key Growth Sectors:

1. Electronics and Semiconductors
   India aims to become a global hub for electronics manufacturing with FDI-friendly policies and infrastructure support. The PLI Scheme for Large Scale Electronics Manufacturing has attracted investments from global giants like Apple, Foxconn, and Samsung.

2. Pharmaceuticals and Biotech
   With a goal to reduce dependency on Chinese imports, India is investing in API (Active Pharmaceutical Ingredient) production and biotech innovation. The Department of Pharmaceuticals supports R&D, manufacturing parks, and export facilitation.

3. Textiles and Apparel
   Through the Mega Integrated Textile Region and Apparel (MITRA) parks and PLI incentives, India is regaining competitiveness in global fashion and technical textiles markets.

4. Green Energy & EVs
   The government’s push for electric vehicle (EV) production, battery storage, and solar panel manufacturing aligns with both Make in India and India’s net-zero emissions target by 2070.

Infrastructure and Supply Chain Improvements

One of the biggest game-changers in Make in India 2.0 is the strong emphasis on logistics and infrastructure. The government has unveiled a slew of initiatives to reduce supply chain costs and improve export competitiveness:

• PM Gati Shakti: A unified digital platform for multimodal connectivity and infrastructure coordination.

• National Logistics Policy (NLP): Aims to bring down logistics costs from 14% to under 8% of GDP.

• Industrial Corridors & Smart Cities: Integrated manufacturing zones supported by digital infrastructure.

These reforms are already improving investor confidence, with India climbing in global manufacturing rankings and ease of doing business indicators.

For companies interested in entering India’s manufacturing space, India-Agent.com offers expert support in identifying industrial hubs, sourcing materials, and establishing local partnerships.

The Rise of Contract Manufacturing and OEM Opportunities

Another significant trend fueling Make in India 2.0 is the rise of contract manufacturing and OEM (Original Equipment Manufacturer) partnerships. India is becoming an attractive alternative to China due to:

• Skilled labor at competitive costs

• Political and economic stability

• Increasing adoption of Industry 4.0 technologies

Many international brands are now turning to India-based contract manufacturers to reduce geopolitical risks and diversify supply chains.

Whether it’s electronics, auto parts, textiles, or industrial machinery, India-agent.com connects foreign companies with vetted Indian suppliers and helps manage trade logistics.

Export-Led Growth and Global Trade Integration

As part of its economic vision, India is strengthening its position in global trade through export incentives, bilateral trade agreements, and global value chain participation. Some notable developments include:

• India-UAE CEPA (Comprehensive Economic Partnership Agreement)

• India-Australia Economic Cooperation and Trade Agreement (ECTA)

• Ongoing negotiations with the European Union, UK, and Canada

Manufacturing growth is contributing directly to rising exports in pharmaceuticals, electronics, machinery, and textiles.

In 2024 alone, India’s merchandise exports were valued at USD 435 billion, as reported by Ministry of Commerce & Industry. This growth opens exciting opportunities for companies looking to import goods from India or set up local production units.

Challenges and the Road Ahead

While the future looks promising, India still faces hurdles such as:

• Complex land acquisition and labor laws

• Power and infrastructure gaps in remote industrial zones

• Need for faster adoption of automation and advanced tech

However, with digital India infrastructure, regulatory reforms, and collaboration between states and central agencies, these challenges are gradually being addressed.

How India-Agent.com Supports Make in India Objectives

At India-Agent.com, we actively support international manufacturers, buyers, and investors in navigating the Indian market. Our services include:

• Manufacturing partner identification and due diligence

• Factory visits and sourcing coordination

• Customs clearance and export/import management

• Trade compliance and local representation

• Strategic consulting for PLI and industrial incentives

We act as a bridge between international ambition and India’s manufacturing reality.

Conclusion

Make in India 2.0 represents more than a policy initiative—it’s a bold economic transformation that aligns India’s manufacturing ambitions with global market needs. By improving infrastructure, offering financial incentives, and targeting high-potential sectors, India is well on its way to becoming a preferred manufacturing destination.

For businesses and investors seeking to capitalize on this momentum, the time to enter is now. Partnering with a trusted local agent is the key to reducing risk, saving time, and ensuring success.

Explore manufacturing opportunities and local partnerships through India-Agent.com—your gateway to India’s industrial future.