Year Ender 2024: 'Make in India' Reaches New Heights

A decade after its launch, India’s Make in India initiative has become one of the most impactful economic drivers in the country, achieving new peaks in 2024. Since its inception, the programme has catalyzed record-breaking investments, fostered massive job creation, and elevated India’s position as a global manufacturing hub. With Rs 1.46 lakh crore investments as of August 2024, the initiative has generated Rs 12.50 lakh crore in production, Rs 4 lakh crore in exports, and 9.5 lakh jobs, making a significant contribution to the Indian economy.

Launched in 2014 by Prime Minister Narendra Modi, Make in India aimed to transform India into a global manufacturing destination, revitalizing key sectors, boosting domestic production, and creating jobs. Over the past decade, it has become a success story, reflecting the country’s growing strength in sectors such as electronics, pharmaceuticals, textiles, defence, and infrastructure.

India’s export sector, in particular, has seen substantial growth, surpassing Rs 4 lakh crore in 2024. Key contributors to this increase include electronics, pharmaceuticals, and food processing industries. In the electronics sector, domestic mobile phone production grew exponentially, from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, a remarkable surge that has been accompanied by a sharp decline in imports. India now exports 5 crore mobile phones annually, with foreign direct investment (FDI) rising by 254% in the sector. Apple, one of the most prominent beneficiaries of the initiative, reached a historic milestone in 2024, with $10 billion worth of iPhone production, of which $7 billion was exported. The Apple ecosystem alone has created 1,75,000 new direct jobs over the past four years, with more than 72% of these roles occupied by women.

In the pharmaceutical sector, India’s position as a global leader has been further solidified by the success of the Production Linked Incentive (PLI) scheme, which has driven India’s rise as the third-largest pharmaceutical producer by volume. As a result, 50% of the country’s pharmaceutical production is now directed towards exports. More than 115 companies applied for the PLI scheme, with 85 companies approved, resulting in an impressive $8 billion (Rs 67,690 crore) in investments, well beyond the initial target.

India has also made notable strides in telecommunications under Make in India. The PLI scheme has helped achieve 60% import substitution in telecom products, and India is now a key exporter of 4G and 5G equipment. By the end of 2024, India had set the groundwork for sustainable growth in the sector, with a 150% increase in FDI in telecommunications between 2014 and 2021. The drone sector also flourished, witnessing a seven-fold increase in turnover due to the PLI scheme’s support.

The government’s focus on infrastructure has also been a key feature of the Make in India initiative, with the PM GatiShakti initiative playing a pivotal role in transforming India’s infrastructure landscape. In 2024, more than 208 large-scale infrastructure projects worth over $180 billion were assessed under this initiative. It has been instrumental in identifying and addressing 156 critical infrastructure gaps, particularly in sectors like coal, steel, fertilizers, and food distribution. Projects under three economic corridors of the Ministry of Railways have been evaluated, contributing to the development of essential transport and logistics networks. The success of PM GatiShakti has spurred interest globally, with countries like Nepal, Bangladesh, Sri Lanka, Madagascar, Senegal, and Gambia keen to adopt elements of the initiative. According to Morgan Stanley, infrastructure investments are projected to grow at a 15.3% compound annual growth rate (CAGR) over the next five years, reaching a total of $1.45 trillion.

The defence sector has also seen unprecedented growth under Make in India. India’s defence production reached a record high of Rs 1.27 lakh crore in 2023-24, with exports to over 90 countries. In just a decade, India’s defence exports surged by more than 30 times, a clear indication of the country’s growing strength in indigenous defence production. The establishment of India’s first private military aircraft facility in Vadodara by Tata Advanced Systems Limited (TASL) is a key milestone for both the aerospace industry and the country’s defence capabilities. The facility will manufacture the Airbus C295 aircraft, a significant leap in India’s aerospace manufacturing. At present, 65% of India’s defence equipment is produced domestically, a testament to the country’s growing self-reliance in the sector. The private sector now contributes 21% of this production, with 16 Defence Public Sector Units (DPSUs) and around 16,000 Micro, Small, and Medium Enterprises (MSMEs) playing a key role in strengthening India’s defence ecosystem.

The textile and apparel sector has also witnessed a strong performance, with India becoming the world’s second-largest producer of textiles and garments, accounting for 4.6% of global trade. In 2024, textile exports grew by 11.56%, and apparel exports registered a 35% year-on-year growth, reinforcing India’s standing as a global textile hub. The PLI scheme in textiles, with a projected investment of over Rs 28,000 crore, is expected to generate a turnover of over Rs 2,00,000 crore and create nearly 2.5 lakh jobs. This initiative is promoting the production of Man-Made Fibers (MMF) apparel and technical textiles, providing scale and size to the industry.

India’s railway sector, another key focus area under Make in India, has witnessed major developments. By December 2024, 136 Vande Bharat trains with Chair Car Coaches were operating across the country. These trains, entirely manufactured in India, are a symbol of India’s capability to produce world-class rail technology. The introduction of the Kavach system, aimed at enhancing train safety, has been deployed across 1,548 route kilometers of the Indian Railways network. Moreover, 97% of the total broad gauge network of Indian Railways has been electrified, contributing to the country's energy efficiency and reducing carbon emissions.

As of 2024, the Make in India initiative has firmly established itself as a driving force behind India’s transformation into a global manufacturing powerhouse. With a decade of success, the programme has contributed to India’s rise in key sectors such as electronics, pharmaceuticals, defence, textiles, and infrastructure. By attracting record investments, generating millions of jobs, and positioning India as a leader in global trade, the initiative has set the stage for continued growth in the years ahead. India’s manufacturing sector is now poised for even greater heights, with Make in India acting as a catalyst for further innovation, sustainability, and economic growth.