A Decade of Growth, A Future of Possibilities: Make in India 2.0

Ten years after its launch, the “Make in India” initiative has significantly transformed India’s manufacturing landscape. By attracting foreign investments, fostering domestic innovation, and promoting policy reforms, the initiative has propelled India’s economic growth and positioned the country as a global manufacturing hub. However, to sustain this momentum, India must address challenges such as labour rights, environmental impact, and regional disparities.

A Decade of Growth, A Future of Possibilities: Make in India 2.0

Launched on September 25, 2014, the ‘Make in India’ initiative has reached its tenth anniversary, marking a significant milestone in India’s journey to become a global manufacturing hub. The initiative aimed to boost economic growth, generate employment, and attract foreign investments. Over the past decade, India has made notable strides in achieving these goals.

Economic Growth and Investment

India’s GDP has grown substantially, reaching $3.9 trillion as of 2024, making it the fifth-largest economy globally. The country’s GDP growth rate has consistently outpaced major economies, with an impressive 8.2% growth rate in FY24. Projections suggest India’s economy will expand by 6-7.1% annually between 2024 and 2026, positioning it to become the third-largest economy by 2030, with a projected GDP of $7.3 trillion.

Key Achievements

•            Foreign Direct Investment (FDI) Inflows: India has received FDI inflows worth $440.27 billion in the last seven financial years (2014-21), with the manufacturing sector receiving $148.97 billion between 2014 and 2023.

•            Manufacturing Sector Growth: The manufacturing sector accounted for 17% of India’s GDP and employed over 27.3 million individuals as of 2023.

•            Production-Linked Incentive (PLI) Scheme: The PLI scheme has significantly boosted production, employment, economic growth, and exports in India. It covers 14 key sectors and has an incentive outlay of about $26 billion.

Challenges

Despite these achievements, India still faces challenges in sustaining momentum in the manufacturing sector. To overcome these challenges, the government plans to increase manufacturing’s share to 25% of the economy by 2025. Ongoing reforms to improve infrastructure and regulatory environments will be crucial in enhancing India’s competitiveness on the global stage.

Sandeep Kumar, CEO, L&T Semiconductor Technologies Ltd., highlights the initiatives undertaken to bridge this gap:

“India is rapidly closing the skill gap in the semiconductor and advanced electronics sectors, by driving several focused initiatives, specialized educational programs, and robust collaborations between industry and academia. As the demand for skilled professionals in this space intensifies, the country is adopting a multifaceted approach that emphasizes building a highly capable domestic talent pool, while leveraging global partnerships to cultivate critical expertise.”

State-Level Initiatives

Several Indian states have launched localized initiatives to attract investments, such as Tamil Nadu Global Investors Meet, Make in Odisha, Vibrant Gujarat, Happening Haryana, and Magnetic Maharashtra. These initiatives have contributed to the growth of foreign investments in the manufacturing sector, with top investments received by Maharashtra, Karnataka, Gujarat, Delhi, and Tamil Nadu.

Collaborations with major global players like Apple and Tesla highlight this progress. Apple’s expansion includes partnerships with local suppliers and manufacturers, boosting employment and enhancing India’s position in the global supply chain. - Naoya Nishimura, CEO, Musashi India & Africa Region

The S&P credit rating has improved from BBB- with a negative outlook to BBB- with a stable outlook, while the country has advanced from 142nd to 54th in the Ease of Doing Business (EODB) rankings. - Siddhartha Tipnis, Partner and Technology Sector Leader, Deloitte India.

As India continues to strive towards becoming a global manufacturing hub, the success of the ‘Make in India’ initiative will depend on its ability to address challenges and build on its achievements.

India’s Manufacturing Revolution

As India’s manufacturing sector embarks on a transformative journey, Dr. Sharad Kumar Saraf, Chairman and Board of Governors, IIT Bombay & IIT Jammu, and Chairman PIWOT 2025, paints a visionary picture: “Imagine a seamless digital network tracking every component of the supply chain, enabling real-time delivery and reducing waste. Or a factory where machines communicate and make real-time decisions without human intervention.”

This vision is becoming a reality as India’s manufacturing hubs embrace Industry 4.0. “Industry 4.0 is not just about technology; it’s about creating a culture of innovation and disruption,” Dr. Saraf emphasizes.

India is leveraging Artificial Intelligence (AI), the Internet of Things (IoT), robotics, and big data analytics to modernize its manufacturing sector. These technologies drive efficiency, productivity, and innovation, transforming traditional manufacturing into an agile and intelligent system.

“AI and IoT are game-changers for Indian manufacturing,” He notes. “They enable predictive maintenance, quality control, and real-time data analysis, reducing downtime and maintenance costs.” IoT enhances connectivity within factories through smart sensors, providing real-time monitoring of equipment, supply chains, and environmental conditions.

Sectoral Growth as a Driver of Transformation ODMs and OEMs in Electronics

The Original Design Manufacturers (ODMs) and Original Equipment Manufacturers (OEMs) segment has grown considerably, notably in the electronics sector. According to Sagar Gupta, Managing Director of Ekkaa Electronics, “The rise in consumer electronics, particularly in sectors like smartphones, wearables, and smart home devices, has fuelled the growth of ODMs and OEMs.”

Ekkaa Electronics has leveraged this demand surge by diversifying product lines and adopting innovative manufacturing techniques such as automation and smart manufacturing. Collaborations with tech firms and startups have allowed Ekkaa to access new technologies and markets, while a strong emphasis on research and development has furthered its competitive edge.

This evolution in India’s electronics manufacturing highlights a broader shift in the industry. The sector has also made strides in adopting eco-friendly practices—a critical factor as consumers and partners increasingly prioritize sustainability.

The Role of Atmanirbhar Bharat

India’s manufacturing ecosystem is backed by policy frameworks designed to increase domestic production and attract foreign investment. Siddhartha Tipnis, Partner and Technology Sector Leader at Deloitte India, notes, “India is strategically positioning itself as a global manufacturing and export hub. Central to this effort is the Atmanirbhar Bharat mission, operationalized through the Make in India initiative and Production Linked Incentive (PLI) schemes.” These incentives encourage domestic and international companies by offering financial benefits, making India more competitive in hi-tech, deep-tech, and space-tech sectors.

AI is being used to optimize production processes through predictive maintenance, quality control, and real-time data analysis, which helps in reducing downtime and maintenance costs. - Dr. Sharad Kumar Saraf, Chairman and Board of Governors, IIT Bombay & IIT Jammu; Chairman PIWOT 2025

Specifically, the PLI scheme is proving transformative for the electronics and electric vehicle (EV) sectors. In the EV space, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and incentives for battery production have driven market expansion. Such policies have boosted India’s appeal within the global EV supply chain, making it an attractive hub for both production and exports.

The evolution of India’s manufacturing capabilities goes hand-in-hand with rapid urbanization, a growing middle class, and government-backed initiatives that simplify doing business.

As Naoya Nishimura, CEO of Musashi for the India and Africa Region, explains, “India is leveraging its vast population of around 1.4 billion to tap into a largely unexplored market with a rapidly growing demand for high-quality technology.” Streamlined export procedures and end-to-end online authorizations, along with infrastructural improvements in logistics, further ease operations for both local and international businesses.

Foreign investment in manufacturing also benefits from policy reforms, including increased FDI limits and incentives that attract a diverse array of global players. Initiatives like Digital India, which promotes e-governance, have improved operational efficiencies and fostered a more conducive environment for establishing and expanding business.

Health Tech Innovation

In healthcare, “Make in India” has given rise to groundbreaking achievements in health tech innovation. SS Innovations, a pioneer in indigenous surgical robotics, exemplifies this progress with its SSI Mantra—the first domestically designed and manufactured surgical robot.

Dr. Sudhir Srivastava, Founder, Chairman, and CEO of SS Innovations, underscores the significance: “SS Innovations’ focus on expanding access to healthcare aligns with its broader goal of making top-tier robotic surgery available to a larger population, particularly in Tier 2 and Tier 3 cities.”

SSI’s strategy centres on affordability and accessibility, with the company reducing costs through domestic manufacturing, making robotic surgery financially viable for more hospitals. As it continues to grow, SS Innovations contributes to the Make in India vision by promoting homegrown innovation and advancing healthcare quality nationwide.

Indigenization in Automotive and Semiconductor Sectors

The drive for self-reliance has also catalysed growth in industries like automotive and semiconductors. Saurav Kumar, reflects on India’s strides in indigenization: “Through a strong push towards local manufacturing and exports, sectors such as automobiles, electronics, and now semiconductors are seeing significant growth, attracting further foreign investment.” India’s automotive industry, particularly in electric and hybrid vehicles, is expanding due to incentives and the increasing presence of global manufacturers.

In semiconductors, partnerships between international leaders and Indian firms—such as the alliances between Foxconn-HCL, Tower-Adani, and Powerchip-Tata—demonstrate the country’s potential as a semiconductor manufacturing hub. Government initiatives further strengthen the sector, building investor confidence and creating new opportunities for high-quality suppliers.

As India aims for a 2047 milestone of becoming a global manufacturing powerhouse, “Make in India” has become central to realizing this vision. Sectors such as electronics, automotive, and healthcare technology showcase how strategic policies, infrastructure development, and indigenous innovation are transforming India’s manufacturing landscape. With continued growth, India is set to establish itself as a critical player in global supply chains, embodying self-reliance while fostering international partnerships for mutual growth and sustainability.

India’s logistics sector, long hampered by high operational costs, limited multimodal connectivity, and infrastructure bottlenecks, is undergoing a transformative shift. Recent government initiatives like the National Logistics Policy (NLP) and the Gati Shakti National Master Plan aim to streamline logistics, optimize costs, and drive efficiency. Industry leaders see these initiatives as essential for boosting India’s competitiveness in global markets, especially as logistics costs here currently account for 14-18% of the GDP, which is significantly higher than the global benchmark of around 8%.

At L&T Semiconductor Technologies (LTSCT), we recognize the critical need for upskilling our workforce from the very beginning of their career so that they add value to this dynamic industry. - Sandeep Kumar, CEO, L&T Semiconductor Technologies Ltd.

National Logistics Policy: Reducing Costs, Increasing Efficiency

The National Logistics Policy, launched to address the logistics cost burden, aims to bring down costs to 8% by 2030 by creating an integrated logistics framework. Tipnis emphasizes that the NLP is designed to make India’s logistics sector more agile by enhancing multimodal transport, which combines road, rail, air, and water connectivity for more efficient movement of goods. “By focusing on streamlining processes, the NLP is helping remove inefficiencies that have historically inflated logistics costs,” he explains.

Key accomplishments include the development of the Eastern and Western Dedicated Freight Corridors, which bolster India’s connectivity and position the country as a competitive player in logistics. These corridors are reducing transit times and helping create a seamless supply chain network across major industrial hubs.

Gati Shakti: Coordinating

Infrastructure Development

The Gati Shakti National Master Plan complements the NLP by focusing on synchronized infrastructure development to overcome poor inter-ministerial coordination. It integrates the efforts of multiple departments, reducing redundancy in infrastructure projects and helping achieve long-term synergies.

“Initiatives like Gati Shakti ensure that infrastructure development is not fragmented but streamlined and cohesive, helping India develop critical logistics hubs,” adds Saurav Kumar, Partner at IndusLaw.

An example of this success is India’s improvement in the World Bank’s Logistics Performance Index, climbing from rank 54 in 2014 to 38 in 2023. Moreover, new Gati Shakti terminals by Indian Railways and the development of multimodal logistics hubs near metropolitan areas show how infrastructure is evolving to meet India’s ambitious economic goals.

The NLP and Gati Shakti are showing results in enhancing connectivity and improving trade efficiency. Naoya Nishimura highlights the impact of these policies on streamlining supply chains through upgraded warehousing standards and digital solutions like real-time tracking.

Collaborations between the government and industry can drive investments in clean technologies and renewable energy sources, ensuring a greener manufacturing landscape. - Sagar Gupta, Managing Director, Ekkaa Electronics

Projects such as the Bharatmala for roads and Sagarmala for ports have substantially improved infrastructure across India, optimizing the movement of goods nationwide.

One notable success story is the completion of the Delhi-Mumbai Expressway, which has drastically reduced travel time between these major cities. “This expressway directly boosts trade, allowing goods to move faster, making logistics more reliable, and contributing to India’s competitiveness in global markets,” Nishimura shares.

Beyond logistics, initiatives like the Production-Linked Incentive (PLI) scheme have catalysed India’s manufacturing sector.

Dr. Sudhir Srivastava, Founder and CEO of SS Innovations, stresses the importance of continued policy support to ensure growth in high-tech industries, particularly healthcare. He points to the need for policies encouraging R&D, infrastructure, and skills development. “While the PLI scheme has been transformative, supporting policies that drive innovation and partnerships between industry, academia, and government are crucial for sustaining momentum,” Srivastava notes.

“Significant reforms have streamlined land acquisition and reduced bureaucratic obstacles for foreign investors. The introduction of the Single Window Clearance System has simplified the process by digitizing land records and accelerating approval timelines, making it easier for investors to navigate regulatory requirements.

These efforts have enhanced the ease of doing business in India, increasing the confidence and interest of foreign investors by providing a more transparent and efficient system for land acquisition and investment approvals” adds Nishimura.

Building a Long-Term Strategy

As India pursues its goal of becoming a global logistics and manufacturing hub by 2047, a long-term vision is essential. Comprehensive policies targeting innovation, infrastructure development, and skill-building are vital. Through initiatives like NLP, Gati Shakti, and PLI, India is laying the groundwork for a more integrated, competitive logistics and manufacturing ecosystem that not only benefits trade but also supports the country’s broader economic aspirations.

Collectively, these policies are reshaping India’s logistics and manufacturing landscape, moving the country closer to achieving its vision of a self-reliant economy poised for global leadership in the coming decades.

Over the last decade, India’s Foreign Direct Investment (FDI) policies have undergone transformative changes, cementing the nation’s position as a key investment destination for global giants. From strategic reforms to attractive fiscal incentives, the country’s proactive approach to foreign investments is paving the way for unprecedented collaborations with industry leaders like Apple, Tesla, and major players in the healthcare and technology sectors.

These advancements are not only driving economic growth but also setting a foundation for India to play a significant role in the global supply chain.

Reforms Driving Investment Appeal

Tipnis observes that India’s evolution into a prime investment hub is driven by significant reforms. As he notes, “India has established itself as a stable and attractive investment destination, marked by significant reforms over the past decade.” A notable improvement in S&P’s credit rating and a leap in the Ease of Doing Business rankings—from 142nd to 54th—highlight India’s growing appeal to international investors. Tech giants such as Facebook and Google, with investments of $5.7 billion and $10 billion respectively, illustrate the confidence these companies have in the Indian market.

In addition, the Production-Linked Incentive (PLI) scheme, alongside a streamlined single-window clearance system, has simplified regulatory processes for investors, making India’s economic environment more inviting. To further incentivize foreign companies, the government has also reduced corporate tax rates from about 35% to 25%, showcasing its commitment to fostering a pro-business environment.

These steps, as Tipnis describes, have positioned India as a top destination for foreign investments, which are fuelling innovation and economic resilience across multiple sectors.

Key Collaborations: Apple and Tesla

Recent high-profile collaborations underscore the potential of India’s enhanced FDI policies to attract major players in technology and manufacturing. Apple’s expanded presence in India, characterized by partnerships with local suppliers and manufacturers, is bolstering employment and integrating India further into the global technology supply chain. Tesla, meanwhile, is eyeing the electric vehicle (EV) manufacturing sector in India, with plans to contribute to the nation’s rapidly evolving EV ecosystem.

Naoya Nishimura points out that India’s liberalized FDI policies have allowed companies to establish wholly owned subsidiaries and incentivized their investment plans: “The liberalization of foreign norms has eliminated restrictions on brand ownership. Tesla’s focus on manufacturing and electric vehicle (EV) production holds promise for the Indian EV ecosystem and job creation.” These large-scale investments not only highlight the growth of India’s industrial landscape but also emphasize the need for upskilling the local workforce to match international standards.

As the developer of the SSI Mantra, India’s first indigenously designed and manufactured surgical robot, the company is playing a critical role in advancing healthcare technology and increasing accessibility across the country. - Dr Sudhir Srivastava, Founder, Chairman and CEO of SS Innovations

FDI reforms have extended their influence into India’s healthcare sector, with companies like SS Innovations benefiting from easier access to international capital and collaborations. SS Innovations, led by Dr. Sudhir Srivastava, has developed the SSI Mantra, an indigenous surgical robotic system that has garnered international attention. The SSI Mantra recently marked a milestone as Nepal’s first surgical robotic system, a feat that underscores SS Innovations’ mission of democratizing advanced healthcare access globally.

“The evolving FDI policies have facilitated access to international capital and fostered strategic partnerships,” says Dr. Srivastava.

The company’s proactive approach to collaboration with global healthcare institutions and technology partners not only enhances its products but also positions it as a key player in the global health tech market. With the continued support of FDI, SS Innovations aims to scale production and drive exports, creating a strong foundation for India in the global surgical robotics industry.

Legal reforms have been pivotal in supporting India’s FDI objectives. Saurav Kumar emphasizes that FDI norms have been streamlined across several sectors, including insurance, pharmaceuticals, construction, and defence. “More holistically, however, the GoI has taken a ‘promotion’ approach, rather than a ‘regulatory’ approach towards foreign investment recently,” says Saurav Kumar.

This shift is exemplified by initiatives such as the national single-window portal, the FIRMS portal for investment facilitation, and the Foreign Investment Facilitation Portal, which replaced the erstwhile Foreign Investment Promotion Board.

Recent collaborations in renewable energy with Japanese and Korean companies, and the semiconductor industry with Taiwanese manufacturers, demonstrate growing international confidence in India’s prospects. He highlights,

that the renewable energy, semiconductor, and financial services sectors are expected to attract substantial foreign investment in the coming years, further reinforcing India’s role in these critical global industries.

A Promising Horizon for India’s FDI Future

India’s evolving FDI landscape, marked by regulatory reforms, tax incentives, and a collaborative approach, has established a conducive environment for large-scale foreign investments.

This favourable environment is driving collaborations with global leaders across various sectors, from technology and manufacturing to healthcare and energy. Through initiatives like the PLI scheme and single-window clearance systems, India is positioning itself as a global powerhouse for innovation, production, and economic resilience.

The journey towards becoming a global investment hub is well underway, with India embracing foreign collaborations that promise to strengthen its economy and enhance its global influence.

AI and IoT are at the heart of India’s Industry 4.0-driven manufacturing modernization. Through AI-enhanced predictive maintenance, manufacturers can anticipate equipment failures, reduce downtime, and significantly lower operational costs. According to Tipnis, this predictive capability, combined with real-time monitoring enabled by the Industrial Internet of Things (IIoT), ensures resource efficiency and minimizes waste across production processes. These connected environments foster seamless collaboration along the supply chain, improving both transparency and efficiency.

India’s National Electric Mobility Mission Plan (2013) promotes electric vehicle adoption through demand incentives, charging infrastructure development, and production-linked incentives for advanced automotive technologies and battery cells. - Saurav Kumar, Partner, IndusLaw.

The adoption of cloud computing further supports these technologies by enabling interconnected manufacturing ecosystems, enhancing collaborative decision-making, and streamlining complex supply chains. Automation technologies, meanwhile, are revolutionizing precision and productivity, allowing for enhanced resource utilization and reduced waste generation.

Sustainability as a Strategic Pillar

In addition to technological upgrades, sustainability is increasingly embedded in India’s manufacturing sector, as industry leaders recognize the importance of balancing economic growth with environmental responsibility. Dr. Saraf, envisions a manufacturing ecosystem in which machines can autonomously communicate and make real-time decisions, creating a seamless and efficient production process with minimal human intervention.

As part of this vision, India’s manufacturers are progressively integrating green practices to mitigate their environmental impact. For instance, many companies are adopting energy-efficient processes, switching to renewable energy sources, and implementing waste-minimization techniques. Initiatives like the National Manufacturing Policy (NMP) and the Zero Effect, Zero Defect (ZED) scheme, backed by government incentives, encourage industries to implement energy-efficient practices and reduce environmental harm. Intending to reduce carbon emissions by 22% by 2030, India’s sustainable industrial framework is gaining momentum.

One of the standout features of India’s sustainable industrial push is the shift toward a circular economy model, which emphasizes recycling, reusing materials, and minimizing waste generation. This model encourages manufacturers to extend the lifecycle of resources, ultimately decreasing the environmental footprint of the manufacturing process.

Moreover, as noted by Naoya Nishimura, India is embracing eco-friendly logistics and sustainable material use within manufacturing. Initiatives such as adopting electric vehicles for transport and optimizing routes to reduce emissions highlight India’s focus on lowering its carbon impact. This commitment extends to research and development efforts that prioritize clean production methods and eco-friendly materials.

Collaboration for a Sustainable Future

India’s approach to integrating sustainability into its industrial growth strategy involves fostering collaborations with global firms and research institutions. These partnerships aim to develop innovative sustainable solutions that align with Industry 4.0. Through such collaborations, India is not only enhancing its technical capabilities but also establishing a foundation for adopting cutting-edge sustainable technologies, including carbon credit monitoring, to support environmental goals.

As Industry 4.0 technologies reshape India’s manufacturing landscape, the sector is moving towards a future where sustainability and innovation coexist. By embracing green practices, investing in sustainable R&D, and fostering global partnerships, India is positioning itself as a leader in sustainable manufacturing. With its strong commitment to Industry 4.0 and sustainability, India’s manufacturing sector is set to play a pivotal role in the global shift toward a greener, more efficient industrial future.

Industry-Academia Collaborations

At L&T Semiconductor Technologies, Kumar emphasizes the importance of upskilling the workforce:

“We recognize the critical need for upskilling our workforce from the very beginning of their career so that they add value to this dynamic industry. Our flagship initiative, iRISE, provides budding engineers with practical knowledge and hands-on training across the semiconductor value chain. We also conduct unique programs focused on nurturing engineers with 5 to 7 years of experience, ensuring they’re well-equipped to tackle real-world challenges.” Sandeep Kumar from L&T Semiconductor Technologies Ltd.

Education and Training Initiatives

L&T Semiconductor Technologies collaborates with prestigious institutions like IIT-G, IIT-B, BITS, and IISc to:

•            Establish specialized education and training programs

•            Develop labs to ensure a steady pipeline of highly skilled engineers

•            Provide in-house training and internship opportunities to engineering students

By engaging with academia, industry leaders like L&T Semiconductor Technologies are building a comprehensive ecosystem that supports talent development and innovation in the semiconductor sector.

While the “Make in India 2.0” initiative has made significant strides in boosting manufacturing and economic growth, it’s essential to acknowledge potential criticisms and challenges. Some concerns have been raised regarding labor rights, environmental impact, and the concentration of benefits in certain regions.

Labour Rights: Critics argue that the focus on attracting foreign investment and increasing production might lead to the exploitation of workers, particularly in sectors with low labour standards. Ensuring fair wages, safe working conditions, and adherence to labour laws is crucial to maintaining a positive image of “Make in India.”

Environmental Impact: Rapid industrialization and increased manufacturing can have adverse effects on the environment. Pollution, resource depletion, and waste generation are potential concerns. The initiative should prioritize sustainable practices, encourage eco-friendly technologies, and implement strict environmental regulations.

Regional Disparity: While “Make in India” aims to benefit the entire country, there’s a risk of uneven development, with certain regions attracting more investment and reaping greater benefits. Addressing regional disparities and ensuring inclusive growth is essential to achieve the full potential of the initiative.

As India celebrates a decade of the “Make in India” initiative, it’s evident that the nation has made significant strides toward its goal of becoming a global manufacturing powerhouse. The initiative has successfully attracted foreign investment, fostered domestic innovation, and created jobs, thereby boosting economic growth.

However, to sustain this momentum and address emerging challenges, India must continue to prioritize policy reforms, infrastructure development, and skill development. By fostering a conducive business environment, promoting sustainable practices, and ensuring equitable distribution of benefits, India can further solidify its position as a global manufacturing hub and contribute to a prosperous future.

aanchalg@cybermedia.co.in