When Make in India was rolled out in 2014, the vision was evident, make India a manufacturing hub of the world, generate jobs in gigantic numbers, and cut down on import dependence. Almost a decade down the line, we have momentum, but we also have a better understanding of what challenges lie ahead.
We’ve made irrefutable progress, the Production Linked Incentive (PLI) schemes have attracted marquee players; the National Logistics Policy is now beginning to address systemic bottlenecks; and our FDI inflows demonstrate strong global confidence. But as someone deeply engaged with India’s industrial revolution, I believe Make in India 2.0 needs to achieve more than schemes. It needs to address the structural vulnerabilities that still straitjacket our manufacturing potential.
Manufacturing as the Core Driver of India’s $5 Trillion Economy Goal
India’s goal is to be a $5 trillion economy. That is not going to be achieved through services. Manufacturing generates not only jobs, but a whole value chain, from raw material to exports, which generates resilience.
Though our share of manufacturing in GDP remains at 17%, the value and depth of the manufacturing is as crucial as the quantity. Think about it: India continues to import a significant percentage of components for high-value products such as electronics. If we are to catch up with countries like China, Vietnam, and South Korea, where value addition is more than 25%, we need to invest in deep domestic value chains.
Beyond PLI – The Three Structural Changes India Needs
PLI schemes have been a push, but incentives will not be enough to deliver structural resilience. We must focus on three significant changes:
1. Backward Integration Across Key Sectors
The Scheme for Manufacturing Electronics Components is a good start. Local manufacturing of display modules, PCB assemblies, and capacitors is not a cost game, it’s a strategic imperative. The same argument needs to be applied to other sectors like automobile, defence, and renewable energy.
2. Industrial Parks Built for Speed-to-Market
The plug-and-play idea, with infrastructure-ready industrial parks, is a total game-changer. China’s 1,400 industrial parks did not magically materialize, they were designed with an integrated supply chain in mind. If we desire a similar scale, the parks will have to be accompanied by world-class logistics, digital infrastructure, and adaptive policy frameworks.
3. Integrated, Multimodal Logistics Infrastructure
Currently, 60% of products move by road, a more expensive and slower mode compared to multimodal networks. The envisioned Multimodal Logistics Parks (MMLPs) can go a long way towards efficiency by connecting road, rail, waters, and air. But speed of action is of the essence; producers cannot make production plans based on policy lags.
MSMEs – The Unheralded Pillar of Manufacturing
We cannot speak of Make in India 2.0 without speaking of MSMEs. They account for more than 30% of GDP and 45% of exports. But they do it in silos, grappling with access to credit, export compliance, and skilling of the workforce.
In my opinion, the future is in facilitation centers that enable three things:
- Simplify export paperwork and link MSMEs to overseas buyers directly.
- Offer working capital product access that matches their cash flow cycles.
- Provide frequent skilling courses to conform to changing international standards.
Capturing India’s Geopolitical Manufacturing Opportunity
Supply chains are being re-mapped around the world. Multinationals are looking for alternatives to China, and India is on their radar. Apple’s move to shift 20% of iPhone production here is proof of that. But multinationals aren’t doing it for charity, they want speed, reliability, and policy predictability.
We need to make sure that every single foreign investor who comes to India finds a scenario that is better on those three fronts. That entails:
- Stable policy institutions that survive longer than elections.
- Effective mechanisms for resolving commercial disputes.
- Technology-led governance for rapid approvals and compliance.
From Opening Doors to Building Strong Foundations
While Make in India 1.0 was about opening the door, Make in India 2.0 has to be about constructing the house, brick by brick, with stronger foundations. We need to be willing to shift from policy announcements to execution excellence, from import substitution to value chain integration, and from incentives to innovation.
I have no hesitation in my mind that India can be the manufacturing hub the world dreams of. But that would need cooperation, between government, industry, and our MSMEs; between policy intention and grassroots implementation; and between the opportunities of the day and readiness of tomorrow. Now is the time, for the world will not wait.
