What is Make in India?

Make in India is a flagship Government of India initiative launched by Prime Minister Narendra Modi on 25 September 2014 to transform India into a global manufacturing and design hub. It was conceived at a time when India had been labelled among the "Fragile Five" emerging economies, with GDP growth at a decade low and manufacturing's share of the economy stagnant — the campaign set out to change that trajectory by facilitating investment, fostering innovation, enhancing skill development, protecting intellectual property, and building best-in-class manufacturing infrastructure.

The initiative is built on four pillars — New Processes, New Infrastructure, New Sectors, and New Mindset — and today covers 27 focus sectors under "Make in India 2.0," coordinated jointly by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Department of Commerce. Its flagship financial engine, the Production Linked Incentive (PLI) Scheme, has since 2020 channelled over ₹1.97 lakh crore toward 14 priority manufacturing sectors, rewarding companies for incremental production made in India.

At Naresh Kalra Advisors Services, we help manufacturers and investors across Chandigarh, Mohali, Panchkula, Ludhiana, and Pan-India navigate entity structuring, FDI compliance, licensing, and PLI scheme applications to make the most of the Make in India ecosystem.

25 Sep 2014

Initiative Launch Date

27

Focus Sectors Under Make in India 2.0

4

Core Pillars

₹1.97 Lakh Cr

PLI Scheme Total Outlay (14 Sectors)

$440 Bn+

Cumulative FDI Inflow (FY2014-21)

63rd

Ease of Doing Business Rank (2020, from 142nd in 2014)

14.39 Lakh+

Jobs Created Under PLI (Dec 2025)

makeinindia.com

Official Portal
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Objectives & Targets

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The Four Pillars of Make in India

New Processes

Recognising "ease of doing business" as the single most important factor to promote entrepreneurship — de-licensing, de-regulation, and digital, IT-driven approvals replacing red tape.

New Infrastructure

Development of industrial corridors, smart cities, high-speed communication networks, and enhanced IPR systems to support modern manufacturing.

New Sectors

Opening up key sectors — including Railways, Defence, Insurance, and Medical Devices — to dramatically higher levels of Foreign Direct Investment.

New Mindset

Positioning government as a facilitator rather than a regulator, working in partnership with industry to enable growth rather than obstruct it.

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27 Focus Sectors Under Make in India 2.0

DPIIT coordinates action plans for 15 manufacturing sectors, while the Department of Commerce coordinates 12 service sector plans — together spanning the following priority areas:

Automobiles & Auto Components
Aerospace & Defence
Electronics Systems
Pharmaceuticals
Biotechnology
Textiles & Apparel
Food Processing
Renewable Energy
Railways
Ports & Shipping
Construction
IT & BPM
Leather
Chemicals
Mining
Media & Entertainment
Wellness & Tourism
Thermal Power
Roads & Highways
Medical Devices

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Key Institutional Support

Invest India

India's national investment promotion and facilitation agency, providing sector-specific guidance, approvals support, and aftercare to domestic and foreign investors.

Investor Facilitation Cell (IFC)

Established in September 2014 to provide single-window assistance across the pre-investment, execution, and after-care phases of a project.

National Single Window System (NSWS)

A single digital platform for investors to access approvals, clearances, land availability, and licensing information across Central and State agencies.

Japan Plus & Korea Plus

Dedicated facilitation cells (operationalised October 2014 and June 2016 respectively) to fast-track Japanese and Korean investment proposals.

PM GatiShakti National Master Plan

Integrates roads, railways, ports, airports, and logistics networks to improve multimodal connectivity for manufacturing and exports.

Industrial Corridor Projects

11 Industrial Corridor Projects under development to build world-class manufacturing infrastructure and industrial hubs nationwide.

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Production Linked Incentive (PLI) Scheme

The PLI Scheme, launched in 2020 with a total outlay of approximately ₹1.97 lakh crore across 14 priority sectors, is the primary financial engine driving Make in India's manufacturing ambitions under the broader Atmanirbhar Bharat framework. It works on a simple, performance-linked principle: the government pays eligible manufacturers a cash incentive of roughly 4% to 18% on incremental sales of goods manufactured in India above a defined base year — no extra production, no incentive.

PLI Sectors Include

Impact So Far

MetricFigure (as reported through late 2025 / early 2026)
Realised investment₹2.16 lakh crore+
Incremental production/sales generated₹20.41 lakh crore+
Exports under PLI-supported sectors₹8.3 lakh crore+
Jobs created (direct + indirect)14.39 lakh+
Applications approved806+ across 14 sectors, including 176 MSMEs
Incentive disbursed₹28,748 crore+ against the ₹1.97 lakh crore outlay

Electronics Component Manufacturing Scheme (ECMS) — 2025 Addition

To address criticism that PLI encouraged "assembly without value addition," the government launched the Electronics Component Manufacturing Scheme (ECMS) in 2025, with its outlay enhanced to approximately ₹40,000 crore in Budget 2026-27, specifically targeting deeper supply-chain layers — multi-layer PCBs, camera modules, connectors, and sub-assemblies — to move India from "Assembled in India" toward genuinely "Made in India."

NOTE — TIME-BOUND WINDOWS

PLI schemes are time-bound with sector-specific incentive periods; several original windows (including Mobile PLI and PLI-Auto) have closed or are closing, while newer schemes (ECMS, Pharma, Food Processing, Solar) remain open. Always verify current application windows and eligibility on the relevant ministry's PLI portal before planning an investment.

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FDI Reforms Under Make in India

SectorFDI Reform
DefenceAutomatic route FDI limit raised from 49% to 74% (announced May 2020)
Construction & Specified Rail Infrastructure100% FDI permitted under the automatic route
Railways100% FDI permitted for specified infrastructure projects
InsuranceFDI limits progressively liberalised in subsequent policy cycles
Medical DevicesOpened to significantly higher FDI levels to boost domestic manufacturing

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Achievements & Impact

Mobile Manufacturing Transformation

India moved from a net importer to a net exporter of mobile phones — 99% of mobile phones sold in India are now domestically produced.

Electronics Output Surge

Electronics production rose from approximately $48 billion (FY17) to $101 billion (FY23) — a more than two-fold increase.

Ease of Doing Business

India's World Bank Ease of Doing Business rank improved from 142nd (2014) to 63rd (2020), the highest-ranked in South Asia.

Record FDI Inflow

India recorded its highest-ever annual FDI inflow of $81.97 billion in FY2020-21; cumulative FDI (FY2014-21) reached approximately $440 billion.

Import Substitution

Achieved roughly 60% import substitution in telecom products, and now domestically produces key pharmaceutical intermediates such as Penicillin G Potassium.

Vande Bharat Trains

Indigenous design and manufacture of India's first semi-high-speed trains, showcasing rail manufacturing capability.

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Challenges — A Balanced View

POLICY DIRECTION

Recent policy recommendations focus on extending PLI-style support to labour-intensive sectors (chemicals, leather, apparel, handicrafts), ensuring more balanced regional distribution of investment, and strengthening R&D linkages to move India's export basket toward higher-complexity goods.

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How Naresh Kalra Advisors Services Can Help

Setting up or scaling a manufacturing operation under the Make in India ecosystem involves entity structuring, sector-specific licensing, FDI compliance, and — where applicable — PLI scheme applications. Our advisory team supports manufacturers and investors across Chandigarh, Mohali, Panchkula, Ludhiana, and Pan-India through this journey:

Entity Structuring & Incorporation

Setting up the right corporate structure for domestic or foreign-invested manufacturing operations.

FDI Compliance

Navigating sectoral FDI caps, RBI reporting (FC-GPR/FC-TRS), and FEMA compliance for foreign-invested manufacturing entities.

Licensing & Regulatory Approvals

Coordinating industrial licensing, environmental clearances, and state-level approvals through single-window systems.

PLI Scheme Application Support

Assessing eligibility and preparing applications for sector-specific PLI and ECMS incentive schemes.

IP & Technology Protection

Patent and trademark filing support to protect manufacturing know-how and branded products.

Ongoing Regulatory Compliance

Corporate, labour, and environmental compliance support for manufacturing entities post-setup.

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Building the World's Manufacturing Hub

2014

Year Make in India Was Launched

27

Focus Sectors Under Make in India 2.0

₹2.16 Lakh Cr+

Realised Investment Under PLI

14.39 Lakh+

Jobs Created Under PLI

Frequently Asked Questions (FAQs)

What is the Make in India initiative?

Make in India is a flagship Government of India initiative launched on 25 September 2014 to transform India into a global manufacturing and design hub, through investment facilitation, innovation, skill development, IP protection, and world-class infrastructure.

What are the four pillars of Make in India?

New Processes (ease of doing business), New Infrastructure (industrial corridors and smart cities), New Sectors (liberalised FDI in defence, railways, insurance, construction), and New Mindset (government as facilitator).

How many sectors does Make in India cover?

27 sectors under Make in India 2.0 — 15 manufacturing sectors coordinated by DPIIT and 12 service sectors coordinated by the Department of Commerce.

What is the Production Linked Incentive (PLI) Scheme and how does it relate to Make in India?

PLI is a performance-based incentive programme launched in 2020 with a ₹1.97 lakh crore outlay across 14 sectors, paying manufacturers 4-18% on incremental sales of goods made in India — the primary financial engine of Make in India and Atmanirbhar Bharat.

Has Make in India achieved its original manufacturing GDP target?

Not yet in full — the original 25%-of-GDP target by 2022 remains unmet, with manufacturing's share around 16-17%, even as investment, exports, and jobs under the initiative have grown substantially.

Who can apply for PLI scheme benefits?

Eligibility is sector-specific — generally companies, LLPs, partnerships, or proprietary firms registered in India meeting minimum investment or base-year revenue thresholds and committing to incremental production targets.

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