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Phase 1 - Make in India 1.0 (2014-19): the study and opportunity pitch
Policies to drive change
Phase 2 - Make in India 2.0 (2019 -24): action and implementation
India’s manufacturing journey: then & now
Where is India headed?
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Phase 1 - Make in India 1.0 (2014-19): the study and opportunity pitch
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Chief Engineer Shows Car Blueprints to Software Designer
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Key objectives
Economies of scale Reduce imports Increase exports Boost demand
Fostering a supportive ecosystem for growth across all industrial scales. Strategically promoting high-potential sectors to boost domestic production and cut imports. Implement policies to enhance India's global manufacturing competitiveness and exports. Revise sourcing norms and remove policy barriers to stimulate domestic demand.
Key initiatives to achieve
PLI Scheme: 4-6% incentives on increased sales of India-made electronics. Import ban on air conditioners (ACs) with refrigerants. PLI scheme: 5% incentive on increased sales of India-made medical devices. Major port authorities bill: boost port infrastructure via decentralization and deregulation.

Phase 2 - Make in India 2.0 (2019 -24): action and implementation

This phase is focused on concrete actions and implementations of policies including:

  • Reduction of corporate tax from 22% to 15% (2019-2024) for new manufacturing units, making India competitive in the Southeast Asian market
  • Expanding the initiative covering 27 sectors, driving achievements, and reinforcing India's global manufacturing prowess
  • These measures, along with various other initiatives, have propelled India towards becoming a formidable force in the global trade and commerce landscape

India’s manufacturing journey: then & now

The manufacturing sector in India has been growing exponentially with a keen focus on built spaces. As per our latest report, the demand for leasing of manufacturing spaces in India has grown 4.5 times in 3 years, going from 3.2 mn sq ft in 2020 to 13.8 mn sq ft in 2023 (16 mn sq ft projected for 2024). Here’s a quick glance at India’s macro-economic numbers:
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Advantage India: manufacturing sectoral growth story
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Sector Growth Exports / Imports Key Investors
Electronics manufacturing (Mobile phones / telecom / drones & drone components / IT hardware / white goods) India's electronics sector grew to US$ 155 bn in FY23, almost quadrupling its value from FY16, driven mainly by mobile phones. Mobile exports surged 77 times from 2014. Currently, 99% of Indian mobile phones are domestically made, a sharp rise from 26% in 2014-15 Foxconn, Pegatron, Samsung, Optiemus, Padget Electronics, Lava International, Bhagwati Products
Medical devices/ pharmaceutical drugs / drug intermediaries and API The Indian pharmaceutical industry has grown 1.3 times in the last 5 years (from US$ 38 bn in 2018 to US$ 50 bn in 2023). It is projected to reach US$130 bn by 2030. Exports nearly doubled (increasing from US$ 15.07 bn in 2013-14 to US$ 27.85 bn in FY 2023-24)

Significant reduction in imports of raw materials in the pharma sector. 		Panacea Medical Technologies, Siemens Healthcare, Allengers Medical Systems, Aurobindo Pharma, Karnataka Antibiotics & Pharmaceuticals, Orchid Bio-Pharma, Reddy’s Laboratories, Biocon, Strides Pharma Science, Premier Medical
Electric vehicles Sector, which was non-existent in 2014, is now valued at US$ 3 bn. Exports reached US$ 10 mn in 2022 Hyundai, Hero, SKODA, KIA, BMW, Tata Motors, Mahindra & Mahindra, Ather, Simple Energy, Ola
Defence & aerospace The value of defence production in the country increased 2.3 times in the last 10 years (FY24 stood at US$ 15.3 bn which was 6.5 in 2014) Exports have experienced a 21-fold increase soaring to US$ 2.5 bn, reaching over 85 nations Aarav unmanned systems, Asteria Aerospace, Absolute Composits Bangalore, Adroitec Information systems
Renewable energy By March 2023, the cumulative PV Module manufacturing capacity had surged to around 38GW, which is double the capacity from 2020 (15GW). Indian PV exports (by value) have already risen by more than 5x in the last one year Adani Green energy, Suzlon Energy, Renew Power, Borosil Renewables, JSW Energy, Vestas, Nordex, Gurit
Specialty steel India ranks as the world's second-largest producer of steel and is poised to overtake China as the world's second-largest consumer of steel. Export of finished steel has increased by over 50% since 2014 ArcelorMittal Nippon Steel India, Jindal Steel Odisha, The Tinplate company of India, Bhushan Power & Steel
Food processing The Gross Value Added (GVA) of the food processing sector has increased from US$ 21.91 bn in 2014-15 to US$ 27.95 bn in 2021-22 The share of processed food exports in agri-exports has increased substantially from 13.7% to 25.6% in the last 10 years. Britannia Industries Limited, Haldiram Snacks, Parle Biscuits, Bikaji Foods, ITC, Bikanervala Foods, Anmol Ind

Source: PIB, IBEF, Institute for Energy Economic & Financial Analysis, Indian Pharmaceutical Alliance, DGCIS, NITI Aayog

Global investment intensions in India

Company HQ country Sector USD mn Location
Hyundai Motors South Korea Automotive 2,756 Tamil Nadu
Skoda-Auto Volkswagen Germany Automotive 1,797 Maharashtra
IMR Metallurgical Resources Switzerland Metal 1,438 Andhra Pradesh
Hyundai Motors South Korea Automotive 839 Maharashtra
Micron USA Semiconductor 825 Gujarat
TDK Corp Japan Electronics 779 Haryana
Nissan, Renault Japan, France Automotive 635 Tamil Nadu
Nestle Switzerland Food and beverage 599 Odisha
VinFast Vietnam Automotive 500 Tamil Nadu
Saint-Gobain France Construction 407 Tamil Nadu
AMD USA Semiconductor 400 Karnataka
Pou Chen Taiwan Footwear 276 Tamil Nadu
Mitsubishi Electric Japan Electronics 227 Tamil Nadu
Shoetown China Footwear 204 Tamil Nadu
Mondelez USA Food and beverage 192 Andhra Pradesh
Boeing USA Aerospace 192 Karnataka
Wistron Taiwan Electronics 180 Andhra Pradesh
Siemens Healthineers Germany Healthcare 156 Karnataka
Youngone Corporation South Korea Textile 120 Telangana
ABB Sweden, Switzerland Engineering 120 Maharashtra

*from company news articles. *For investment announcements in INR, an exchange rate of 1US$ = 82 INR has been used for conversion

Domestic investment intensions in India

Company Sector USD mn Location
Adani Energy Energy 100,000 Gujarat
Tata Electronics + PSMC Semiconductor 10,905 Gujarat
Maruti Suzuki Automotive 3,835 Gujarat
Tata Semiconductor Assembly Semiconductor 3,235 Assam
Tata Motors Automotive 1,000 Tamil Nadu
Exide Battery EV battery 719 Karnataka
Kaynes SemiCon Semiconductor 599 Gujarat
Tata Chemicals Chemicals 479 Gujarat
Sanofi Healthcare Pharma 431 Telangana
Epsilon Carbon Chemical 240 Odisha

Where is India headed?

India’s aspirations at 100 years of independence i.e. by 2047 is to become a truly self-reliant developed nation or ‘Viksit Bharat’. 
Economy 2nd largest in the world
Manufacturing GDP To grow 15x to US$ 6.2 trillion
Services GDP To grow 13x to US$ 20 trillion
FDI To grow 12x to US$ 1 trillion
Exports To grow 12x to US$ 8 trillion

Source: Invest India, Davos paper.

Over the last decade, ‘Make in India’ has driven substantial growth across various sectors. As India proceeds towards its goals of becoming the world's second-largest economy, growing the manufacturing GDP 15-fold, and increasing exports 12-fold, ‘Make in India’ has laid a strong foundation stone for these aspirations. With continued policy support and strategic focus on key sectors, India is well on its way to realising its vision of becoming a global manufacturing powerhouse.