Make in India @ 2025

Knowledge Research Insights

February 2025

Oraculi & Dux

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A. Executive Summary

Historically India has been an agrarian nation, both economically as well as the populace engaged in
farm and related activities. Though the formation of IIT’s gave wing to early industrialization, the
licence Raj thwarted competitiveness till the Economic reforms of 1991.
Post then, an influx of MNC’s and “Made in India” blossomed, soon to be overtaken by the services
sector, now a dominating the GDP with 60% contribution, thanks to the timely onboarding onto the
IT & ITes bandwagon by tech companies.
The rising population and demographics, especially the youth, along with slowdown in the growth
of per capita income underscored the need for more jobs. This can be fulfilled predominantly from
manufacturing or entrepreneurship- providing an impetus to a start-up culture.
However, India like the rest of the world, was reeling under the impact of low cost and acceptable
quality of Chinese goods. Thus in 2014, Make in India was launched to position India as a local and
aspirational to a global manufacturing hub by boosting domestic production, attracting foreign
investment, and enhancing ease of doing business.
Key Policy Developments of Production-Linked Incentive (PLI) Scheme; Atmanirbhar Bharat (Self-
Reliant India); Ease of Doing Business (EoDB) & FDI Reforms along with Infrastructure & Logistics
initiatives like PM Gati Shakti and PM MITRA Parks, Renewable Energy, and electric vehicles, made a
concerted role towards the goal.
The Department for Promotion of Industry and Internal Trade (DPIIT) bridges multiple ministries
and states, while initiatives like One District One Product (ODOP) promote regional development by
leveraging each district’s distinct strengths—whether in craftsmanship, agriculture, or specialized
production.
A decade later, this initiative remains crucial for domestic amidst global economic challenges,
geopolitical and economic shifts.
From a Global perspective, Trump 2.0 & US Trade Policies create an uncertain environment. India’s
deft handling of Global relations enhances our place and presence in global trade.
Supply Chain Diversification add another dimension to India’s industrial strategy- China+1 has
benefited India, as visible in the assembly of iPhones in India. Yet, we must be cautious that
recession risks in major economies may slow investment and exports.
There are also Regulatory & Bureaucratic Hurdles, for example while improvements have been
made, land acquisition, taxation, and labour law complexities still deter some investors.
Continued investment in modern infrastructure and vocational training is critical to sustaining
manufacturing growth.
Despite global uncertainties, Make in India remains a key pillar of India’s economic growth strategy.
With favourable geopolitical trends, strategic policy reforms, and increasing global investment, India
is well-positioned to emerge as a leading manufacturing destination.

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B. The Context

Make in India underscores the importance of Competitiveness for boosting manufacturing output
and hence ancillary sectors such as logistics and warehousing are critical for efficient and resilient
supply chains.
Make in India targets 25 industry sectors across both manufacturing and services - green shoots are
visible in many of these sectors.

Automobiles Auto components Aviation Bio-technology Chemicals

Electronic system
Defense Electrical
Construction manufacturing
design & Food processing
machinery manufacturing

Media and
IT and BPM Leather entertainment
Mining Oil and gas

Renewable Roads and

Pharmaceuticals Ports Railways
energy highways

Tourism &
Space Textiles Thermal power Wellness
Hospitality

As per the current policy, 100% FDI permitted in all the 25 sectors covered in the "Make in India"
plan, except for media (26%), defence (49%) and space (74%).

Demographics
With a median age of roughly 29 years, India has a substantial labour force ready to fuel industrial
and service sectors alike.
However, a challenge is employability- an area that is addressed by Skill Development Initiatives
over two decades now but much more needs to be done, especially in area of vocational training
and respect for workforce.
The logistics sector historically relies on labour-intensive operations—such as loading, sorting, and
inventory management. While automation is on the rise, a large, trainable workforce can still
support rapid scaling of these operations across multiple regions.
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Infrastructure as a Catalyst
Infrastructure is vital for industrial growth, trade facilitation, and overall economic momentum.

• Road Network: Major upgrades to expressways and highways aim to slash travel times and
improve last-mile connectivity.

• Rail Corridors: Accelerated electrification,

capacity boosts, and dedicated freight
corridors ensure more efficient multi-modal
solutions

• Ports & Aviation: Enhanced seaports,

airports, and multimodal logistics parks
reduce bottlenecks and accelerate domestic
& international freight movement.

• 11 Industrial Corridors: Integrated

development of manufacturing clusters,
logistics parks, and residential areas fosters
large-scale production ecosystems.

• Smart Cities: Greenfield and brownfield

smart cities combine cutting-edge digital infrastructure with modern urban planning, creating
plug-and-play environments.

• SEZs: Over 270 operational zones are evolving into logistics and warehousing hubs, equipped
with tax incentives and advanced facilities to entice global investors.

Policy Enablers
• Land Acquisition & Digitized Approvals have improved over this period with GIS (Geographical
Information System) mapping of land

• Compliances have been reduced, and many legal provisions have been decriminalized
Notwithstanding above, the EoDB has mixed response and compliances with GST and other
agencies is a mixed bag

Impact of AI
The impact of AI and the changes in job roles is crucial in the coming few years for competitiveness,
re-skilling and avoiding loss of jobs. These are the challenges which the Indian economy, along with
the rest of the world, will need to formulate an India-centric strategy.

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C. Current Practices: An O&D Study

We capture the Hits and the Misses of the Make in India with in a concise and holistic framework

The Hits
Initiative /
Policy Outline Impact
Policy
Rs. 1.97 lakh crore (~USD 26
Production- 755 applications approved (as of July 2024)
billion) allocation
Linked
Covers 14 sectors (e.g.,
Incentive (PLI)
mobiles, medical devices, Rs. 1.23 lakh crore investment
Schemes
automobiles)
2021–2022 Aims to boost largescale
8 lakh new jobs created
manufacturing
Holistic infrastructure Enhanced coordination among ministries for
PM GatiShakti development infrastructure projects
Integrates multimodal Expected to streamline logistics, reduce
Oct-21
connectivity costs
Attracting major projects (e.g., Micron’s Rs.
Semicon India Rs. 76,000 crore budget
22,000 crore investment)
Program
Focus on sustainable
Aim to position India as a potential global
semiconductor & display
2021 semiconductor manufacturing hub
manufacturing ecosystem
National Improves India’s logistics Seeks to enhance India’s ranking in Logistics
Logistics Policy network Performance Index
Aims to reduce overall Facilitates faster and more efficient goods
Sep-22 logistics costs movement
National Industrial Corridor 12 recently approved projects worth Rs.
Industrialization Development Program 28,602 crore
& Urbanization Integrates industrial corridors Drives creation of global manufacturing
with urban planning clusters
Ongoing Development of smart cities Accelerates India’s industrial base and
& industrial hubs organized urban growth
Startup India Built a supportive Fosters a culture of innovation and
Initiative entrepreneurship ecosystem enterprise
Simplifies regulations, offers Over 148,931 startups recognized
2016 tax benefits 15.5 lakh direct jobs generated
Introduction of Unified indirect tax system Easier interstate trade
GST To reduce cascading taxes Boosted manufacturing & formalized
July 2017 and improve competitiveness segments of the economy
Unified Digital payments platform
46% of global real-time payment
Payments handling real-time
transactions
Interface (UPI) transactions
Accessible via mobile apps Major enabler of India’s digital economy
2016
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The Misses
A detailed compilation of the key area and how we fared in this period gives a clear picture

Focus Area Report Card

Target to reduce reliance on

imports; however, only a slight
Imports
reduction from 25.95% (2014)
to 23.96% (2023) of GDP.

Target was 12-14% annual

growth; in practice, growth has
been just 5.5%.
Manufacturing
The Government’s target of
Growth Target 25% contribution to GDP by
2025 remains far from being
achieved.

Exports increased but the gap

between imports and exports
Export vs.
widened, with India spending
Import
$54.5 billion more on imports
Disparity than it earns from exports by
2024.

Foreign Direct Investment (FDI)

saw a rise, but outflows
FDI &
(disinvestment) have grown
Investment significantly, signaling a lack of
net positive investment.

Target of employing 100 Mn.

people in manufacturing by
Employment 2020, but only 18.5 Mn jobs
Generation have been created so far. High
graduate unemployment rates,
with 30% unable to find jobs.

Only 2% of India’s workforce

holds a certificate proving
Labor and mastery of a skill, compared to
Skills 96% in South Korea and 80% in
Deficiency Japan. High unemployment due
to inadequate skills training
programs.
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D. Insights and Way Forward

While Make in India has been a Key Initiative, the mixed report card gives food for thought for
strategic shifts in the policy framework for realising the true potential of a “Viksit Bharat”.
Further, the emergence of AI and its deep and irrevocable impact on mankind, far more than any
other technology adds to the challenge. Thus, in addition to the sectors and initiatives in Make in
India, key areas to focus or revisit are:
1. Ease of Doing Business
• Smaller companies have an unease with high compliances, including GST complexities.
• These enterprises are key to a Nation’s competitiveness as opposed to duopoly or
oligarchs.
2. Sustainability
• Scale up investments in green hydrogen and solar-powered factories.
• A localized EV supply chain, including Li-ion battery production.
3. Logistics Costs & Efficiency
• The most significant area for cost improvement is to bring Fuel under GST.
• Optimize warehousing, transportation, inventory management with AI.
4. Skilling Workforce for AI & Advanced Manufacturing
• Upskill workers in AI, ML, IoT, and robotics. Launch skill programs with industry leaders
• Provide AI tools to small manufacturers to boost efficiency
5. AI & Emerging Tech in Manufacturing
• AI-driven automation, IoT, and predictive maintenance to increase efficiency and reduce
costs is imperative with China ahead of the curve.
• Digital Twin Technology: Simulate real-time production processes for better optimization.
• Promote localized production using 3D Printing & Additive Manufacturing
6. Promote R&D
• Establish AI and semiconductor research hubs like the US and China.
• Invest in next-gen computing and materials for industry applications.
• Push industry-academia partnerships to develop Indian AI models.
A future-ready India will be one that seamlessly integrates AI with manufacturing, logistics, and
R&D while competing globally in cutting-edge industries.

The paper provides food for thought for industries and supply chain practitioners for a future ready
enterprise.
Our research and advisory teams would be happy to engage with you for a deeper study and scenario
building or a strategic road map for your company.

info@oraculidux.com www.oraculidux.com

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