In September 2014, Prime Minister Narendra Modi launched the “Make in India” initiative. This initiative was taken to encourage manufacturing in India and create a favorable environment for investments. Another aim was to increase the manufacturing sector’s contribution to GDP to 25% by the year 2022 (revised to 2025).
This campaign promised to help in facilitates investments, foster innovations, enhance skill development, and whatnot. PM says that manufacturing in your own country is the only way by which you can change low–income nations into middle or high-income ones.
The share of manufacturing in India’s Gross Domestic Product was 15% in 2014. Last year, it falls to 14%. According to some surveys, this “Make in India” has not been really effective. It’s a failure as it’s been over 6 years since it was started.
According to experts, they have reached this conclusion by comparing our economy with some countries.
China has an economy over 5 times the size of India’s economy. The manufacturing GDP of this country is almost 29%. It remained the same as it is from 2014 to 2020.
Also, countries like Sri Lanka Vietnam Thailand, Indonesia, the Philippines, Malaysia, Singapore are growing up in the terms of manufacturing GDP. For India, the economic conditions are becoming worse. As per the Economic survey 2018-19, investment in India has declined to around 28.6% of GDP in 2017-18 from almost 31.3% in 2013-14.
In 2020, because of pandemic and lockdown, the economy goes in negative terms. Manufacturing gives an excellent result when you have semi-skilled workers in your team. In 2014, when other countries were making their shares in this five-year “Make in India” initiative, China did not fall for it.