Consistency and continuity are the cornerstones of India's Make in India strategy which completed ten years recently, since its launch in September 2014 by the Prime Minister Narendra Modi. The strategy provided predictability to investors who have accordingly channelled their resources and investments.
According to a survey done by Nomura, Asia is the primary beneficiary of shifting supply chains. India received the most interest from firms (28 out of 130 firms) to set up or expand existing production facilities, followed by Vietnam, Mexico, Thailand, Malaysia and Indonesia.
Further, World Trade Organisation’s (WTO) database shows that India’s GVC related trade increased nearly fourfold from US$ 63 billion in 2010 to US$ 233 billion in 2022.
Make in India is more than just a rallying cry for self-reliance. This journey over the past decade has been transformative, reshaping the mindset towards manufacturing and positioning India as a global player in number of existing and emerging areas. Some of the key pillars of this strategy have been quality at scale, embracing digital excellence, ease of living and doing business, research and fostering skill development.
Historically, India has been known for its large-scale, labour-intensive production. However, over the past decade, the paradigm has shifted from quantity to quality and also towards adding new manufacturing frontiers like space, defence, green hydrogen, electric vehicles etc.
We have seen unwavering focus on improving the quality of manufacturing across industries under Make-in-India. The Prime Minister launched the ZED scheme with the aim to have zero defect and zero effect in Indian products. This would mean ensuring quality while having minimum impact on the environment. Make in India has brought the attention of global investors to India’s potential to produce world-class products.
Our efforts are to establish the “Made in India brand” globally. This year, four Indian companies secured positions on the list of the 100 most valuable global brands in the Kantar BrandZ Most Valuable Global Brands Report. As we continue to move up in the ease of doing business rankings (from a 142nd position in2014 to 63rd position in 2020), I am sure that our Viksit Bharat journey too will add many more Indian manufacturing brands to this list of top 100 brands.
The advent of Industry 4.0 and digital technologies has further opened the doors for enhanced operational efficiency and productivity. Data analytics, artificial intelligence, and machine learning have enabled predictive maintenance, reduced downtimes, and optimised production schedules.
This digital transformation has not only improved the consistency of output but also significantly reduced waste generation, contributing to sustainability efforts in manufacturing. Indian manufacturing is on track to leverage these technologies for improving its productivity and operational excellence. IndiaAI approved by the Cabinet in March 2024 Mission, marked a significant step towards bolstering India’s AI ecosystem that would enable adoption of such technologies.
Another area where policy interventions and recent concerted efforts are making progress are in the domain of formalisation of MSMEs. Many of the SMEs, particularly in sectors such as textiles, agro-processing, and automotive components, have integrated e-commerce platforms and cloud-based software solutions into their businesses. This digitisation has allowed them to scale up operations, access international markets, and enhance customer experiences.
Going forward, these enterprises would need maximum relief from the compliance burdens they currently face, to enable them to grow and scale up further.
Alongside technological advancements, the Make in India initiative recognised the importance of a skilled workforce to sustain long-term growth. This realisation gave rise to the Skill India Mission in 2015. The Skill India Mission has successfully trained around 14 million youth and skilled & skilled 5.4 million individuals.
Over the years, Skill India has succeeded in not just providing employment opportunities but also in enhancing the employability of India's burgeoning youth population. Collaborations with industry bodies like FICCI, NSDC (National Skill Development Corporation), and international partners have helped in shaping curricula that are market-relevant and technology-focused.
While the last decade has been one of unprecedented growth, the journey of Make in India is far from over. India’s renewed focus on sustainability also opens new avenues for growth. As global consumers demand more environmentally responsible products, Indian manufacturers are incorporating green practices such as renewable energy use, waste minimisation, and circular economy models. These efforts are expected to further boost India's competitiveness in the global market.
As we look ahead to the next decade, there is little doubt that India is well on its way to becoming a global manufacturing and innovation leader, ready to meet the demands of a rapidly evolving world.
—The author, Anant Goenka, is Vice Chairman, RPG Group, and Vice President of Federation of Indian Chambers of Commerce and Industries (FICCI). The views expressed are personal.