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‘Make in India’ Completes 8 Years: Annual FDI Doubles to USD 83 Billion

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Make in India' completes 8 years, annual FDI doubles to USD 83 billionOn September 25, 2022, “Make in India”, the flagship programme of the Government of India (GoI), completed 8 years of pioneering reforms with significant achievements across 27 sectors, including the strategically important manufacturing and services sectors.

  • Prime Minister Narendra Modi launched the initiative on September 25, 2014, at Vigyan Bhawan in New Delhi, Delhi.

Objective: To promote investment, foster innovation, boost skill development, protect intellectual property, enhance India’s ranking on the Ease of Doing Business index, and create world-class manufacturing infrastructure in India.

  • With this initiative, Indian businesses strive to ensure that their products are “Made in India” and also “Made for the World,” adhering to global standards of quality.
  • It is one of the unique “Vocal for Local” initiatives that promotes Indian manufacturing across the world.

Make in India: A Major National Programme

Make in India seeks to strengthen India’s manufacturing sector by bringing in investments from across the world.

  • Implementing Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry (MoCI).
  • It intends to leverage India’s existing talent base, create new job opportunities, and strengthen the secondary and tertiary sectors, in order to contribute to the growth of the Indian economy.

Under Make in India 2.0, it focuses on 27 sectors, including 15 sectors under the manufacturing sector, which is coordinated by DPIIT, MoCI, and 12 sectors under the service sector, which is coordinated by the Department of Commerce, MoCI.

List of 27 Sectors under ‘Make in India’ initiative

Manufacturing Sectors – Coordinated by DPIIT, MoCI

Aerospace and DefenceLeather & Footwear
Automotive and Auto ComponentsFood Processing
Pharmaceuticals and Medical DevicesGems and Jewellery
Capital GoodsRailways
Textile and ApparelsConstruction
Chemicals and PetrochemicalsNew and Renewable Energy
Electronics System Design and Manufacturing (ESDM)

Service Sectors – Coordinated by the Department of Commerce, MoCI

Information Technology & Information Technology enabled Services (IT & ITeS)Legal Services
Tourism and Hospitality ServicesCommunication Services
Medical Value TravelConstruction and Related Engineering Services
Transport and Logistics ServicesEnvironmental Services
Accounting and Finance ServicesFinancial Services
Audio Visual ServicesEducation Services


The GoI has implemented a liberal and transparent policy that makes the majority of sectors available to Foreign Direct Investment (FDI) via the automatic route in order to attract in foreign investments.

i.FDI inflows into India reached USD 45.15 billion in 2014-2015, and have since reached record levels until 2022.

  • The period of 2021-22 recorded the highest ever FDI at USD 83.6 billion.

ii.This FDI came from 101 nations and was invested in 31 Indian states/Union Territories (UTs) across 57 sectors.

iii.India is on course to receive USD 100 billion in FDI in the current fiscal year 2022-23 (FY23), owing to recent economic reforms and ease of doing business.

Transformational Initiatives Undertaken by The GoI to Boost Make in India

Production Linked Incentive (PLI) scheme

The PLI scheme was introduced in 2020-21 across 14 key manufacturing sectors, as a major boost to the Make in India initiative.

  • The scheme incentivizes domestic manufacturing in strategic growth sectors where India has a comparative advantage.
  • The Micro, Small & Medium Enterprise (MSME) eco-system is likely to benefit from the significant gains in employment and production of the PLI Scheme.

Incentive Scheme for Semiconductors

The GoI has launched a USD 10 billion (~Rs. 76,000 Crore) incentive scheme to develop a semiconductor, display, and design ecosystem in India, in recognition of the significance of semiconductors to the global economy.

Public Procurement

The ‘Public Procurement (Preference to Make in India) Order 2017’ was also issued in accordance with Rule 153(iii) of the General Financial Rules 2017 as an enabling provision to support local industry by giving them preference in public procurement of Goods, Works and Services.

  • The policy encourages domestic manufacturers to participate in public procurement operations over firms that only import to trade or assemble items.
  • The policy applies to all Ministries/Departments/attached or subordinate offices/autonomous bodies administered by the GoI, as well as Government Companies as defined in the Companies Act.

National Single Window System (NSWS)

The National Single Window System (NSWS), which offers investors a single digital platform for approvals and clearances, was soft-launched in September 2021 with the aim of improving the ease of doing business.

  • To improve the investor experience, this portal has integrated many existing clearance systems from various Ministries/Departments of the GoI and State Governments.

Prime Minister’s Gatishakti Programme

The Prime Minister’s Gatishakti programme was launched in 2021 to provide multimodal connectivity to Indian manufacturing zones.

  • It aims to ensure logistical effectiveness in business operations by building infrastructure that enhances connectivity.
  • It also intends to enable faster movement of people and goods, through improved access to markets, hubs, and opportunities, as well as lower logistics costs.

One-District-One-Product (ODOP) Initiative

The ODOP initiative is another manifestation of the “Make in India” vision, which aims to facilitate the promotion and production of indigenous products from every district in India.

  • Aim: To provide a global platform for artisans and manufacturers of handlooms, handicrafts, textiles, agricultural, and processed products, while contributing to the socio-economic progress of diverse regions of India.

India as A Global Toy Manufacturing Hub

The GoI has implemented strategic interventions to strengthen domestic design and manufacturing of toys. The interventions include:

  • Increased Basic Custom Duty from 20% to 60%; Quality Control Order implementation; mandatory sample testing of imported toys; issuing more than 850 Bureau of Indian Standards (BIS) licenses to domestic toy manufacturers; development of toy clusters, etc.

A number of promotional initiatives, such as The India Toy Fair 2021, Toycathon 2021, and Toy Business League 2022, were conducted to promote indigenous toys and promote innovation and cutting-edge design to meet international standards.

Key Statistics

i.Toy imports dropped by 70% to USD 110 million (Rs. 877.8 crore) in FY21-22.

ii.The industry’s efforts resulted in a toy export of USD 326 million (Rs. 2601.5 crore) in FY21-22, an increase of more than 61% over the USD 202 million (Rs. 1612 crore) in FY18-19.

iii.Toy exports from India increased by 636% from April – August 2022 compared to the same period in 2013.

Recent Related News:

In August 2022, Union Minister Piyush Goyal, Ministry of Commerce and Industry (MoCI), released the “Department of Commerce Restructuring Dossier” at Vanijya Bhawan in New Delhi, Delhi. The Department of Commerce, MoCI, is being restructured in an effort to prepare India to become a leading global player in world trade and to attain a USD 2 trillion export target by 2030.

About Ministry of Commerce & Industry (MoCI):

Union Minister – Piyush Goyal (Rajya Sabha – Maharashtra)
Minister of State (MoS) – Anupriya Singh Patel ; Som Parkash