Impact of Make in India on the Manufacturing Sector: What Moved and What Did Not

Oct 17, 2026

The impact of Make in India on the manufacturing sector is real but narrow. Since the campaign began on 25 September 2014, India has built a mobile phone industry that grew from about ₹18,000 crore of output in 2014-15 to about ₹6.27 lakh crore in 2025-26, and the government's production-linked incentive (PLI) schemes had drawn over ₹2.40 lakh crore of actual investment by March 2026. The headline goal is still out of reach. Manufacturing adds about 15 paise of every rupee the economy adds, against the 25 paise the campaign was meant to reach.

For someone planning a factory, that split matters. The gains sit in a few sectors, mainly electronics, pharma, autos and food. They reach small units through supply contracts and government purchase rules, not through the campaign itself.

What was Make in India meant to change?

The campaign rests on four pillars, as the Press Information Bureau (PIB) described them in 2015:

• New processes: easier procedures for starting and running a business.
• New infrastructure: industrial corridors, faster intellectual property registration and skills matched to industry.
• New sectors: foreign investment opened up in defence, insurance, medical devices, construction and railway infrastructure.
• New mindset: government acting as a facilitator for industry rather than a regulator.

It began with 25 sectors. PIB's current description lists 27, of which 15 are manufacturing and 12 are services. The Make in India website dates the 25% share-of-GDP goal to 2020.

How big is the impact of Make in India on the manufacturing sector, in numbers?

Electronics carries most of the gain, while economy-wide measures moved far less. The electronics figures come from the Ministry of Electronics and IT's Lok Sabha reply of 29 July 2026, FDI from the Department for Promotion of Industry and Internal Trade (DPIIT), and exports from the Commerce Ministry.

The worker share comes from MoSPI's labour survey, which warns that its 2025 sample design changed, so treat the one-year rise as indicative. Merchandise exports were close to flat across those two years, despite the longer-run gain in electronics exports.

Why is manufacturing still about 15% of the economy and not 25%?

MoSPI's provisional estimates for 2025-26 put manufacturing at ₹46.62 lakh crore of ₹314.87 lakh crore total value added, which works out to 14.8% at current prices and 16.1% at constant 2022-23 prices. The goal was set against GDP, so value added is the closest published match. The series also moved to a new base year in February 2026, so figures quoted from the older series are not comparable.

Three things hold the share down.

• Assembly adds little value. Domestic value addition under the mobile phone PLI scheme was 23% in FY2023-24, according to the ministry's external evaluation. Most of a phone's value is still imported parts.
• Capital-heavy plants hire few people. The table below shows how sharply jobs per rupee differ by sector.
• Exports outside electronics have not surged. Total merchandise exports barely moved over two years.

PLI jobs depend far more on the sector than on the amount invested. This table uses the sector-wise annexure in the 21 July 2026 PIB release, with jobs per ₹1 crore calculated from its figures.

Across all 14 sectors the release reports 8,49,069 direct jobs on ₹2,40,138 crore of investment. Small units that want labour-intensive demand should look first at food processing and textile manufacturing ideas.

What can a small manufacturer do with Make in India?

Start with the buyer, not the scheme. If your product is a part that a PLI or component plant already buys, begin with that plant's vendor team. If you sell finished goods to government departments, work out your local-content class before you price a tender. If neither applies, the campaign changes little for you directly, and a sector page such as electrical and electronics manufacturing ideas will serve you better than the policy.

What has changed in the last year?

• ECMS has outgrown its plan: ₹69,548 crore is approved against ₹59,350 crore envisaged, and Budget 2026-27 raised its outlay from ₹22,919 crore to ₹40,000 crore.
• The Union Cabinet approved Semicon 2.0 on 15 July 2026 with an outlay of ₹1,27,500 crore.
• The National Manufacturing Mission, announced in Budget 2025-26, now carries the 25% goal with a new date of 2035. An inter-ministerial committee is working with NITI Aayog, and the textile mission is still being formulated. For the wider self-reliance schemes, see the Atmanirbhar Bharat scheme page.

Frequently asked questions about Make in India's impact

Is Make in India the same as the PLI scheme?

No. Make in India is the 2014 umbrella campaign. The PLI schemes are incentive programmes in 14 sectors that pay companies an incentive linked to their production. By March 2026 they had drawn over ₹2.40 lakh crore of actual investment against an approved outlay of ₹1.91 lakh crore.

How many sectors does Make in India cover?

It began with 25 sectors in 2014. PIB's current description lists 27: 15 in manufacturing and 12 in services. For a factory owner the relevant ones are the manufacturing groups, such as automobiles, electronics, food processing, textiles and pharmaceuticals.

Did Make in India create manufacturing jobs?

Some, and unevenly. The 14 PLI sectors report over 14.15 lakh direct and indirect jobs by March 2026. MoSPI's labour survey puts manufacturing at 12.1% of workers in 2025, against 11.6% in 2024, with a caveat on comparability. Food and electronics units hired the most per rupee invested.

What is the conclusion on the impact of Make in India?

The verdict is mixed. Mobile phone assembly grew many times over, and PLI money reached 14 sectors. The economy-wide goal is far off, with manufacturing near 15% of value added, and local value addition is still low. The next phase aims at components and small suppliers.

Is the 25% manufacturing target still the goal?

Yes, with a later date. PIB's Budget 2026-27 note says the National Manufacturing Mission targets a 25% share of GDP by 2035. The Make in India website had earlier tied the same 25% to 2020.

How to turn this into a plan for your own unit

1. Find your product among the PLI and component segments, or confirm that you supply one of them.
2. Check your Udyam class against the limits above, since the 2025 revision raised every limit.
3. List three likely buyers. For private plants ask for vendor requirements, and for government buyers work out your local-content class.
4. Read the current guideline on the ministry portal before committing capital, because windows and terms change.

Other schemes are collected under government schemes for manufacturers, and product ideas by sector sit under manufacturing business ideas.