Post-2014 Industrial Policies

4.1 Make in India

Launched: September 25, 2014 | Nodal ministry: DPIIT (Department for Promotion of Industry and Internal Trade)

Objectives:

1. Raise manufacturing to 25% of GDP by 2025 (currently ~16%)
2. Create 100 million additional manufacturing jobs by 2025
3. Position India as a global manufacturing hub
4. Improve ease of doing business

Coverage: 27 sectors including automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, railways, defence, space, tourism

Achievements:

• FDI inflows doubled from ~$36 billion (2013–14) to $70+ billion
• India became a major mobile phone manufacturer — from net importer to 2nd largest producer after China
• Defence manufacturing orders: India reduced imports significantly; PLI in defence electronics

4.2 Atmanirbhar Bharat Abhiyan (2020)

Context: COVID-19 pandemic (2020) disrupted global supply chains. India's dependence on Chinese imports in pharmaceuticals and electronics became a strategic vulnerability.

Announced: May 12, 2020 by PM Modi; package: Rs 20 lakh crore (~10% of GDP)

Five pillars: Economy, Infrastructure, System, Vibrant Demographics, Demand

Key components:

1. Emergency Credit Line Guarantee Scheme (ECLGS): Rs 3 lakh crore collateral-free loans for MSMEs (90% guarantee by NCGTC); extended to hospitality, civil aviation, transport (post-COVID)
2. PLI schemes for 14 sectors (see below)
3. Defence self-reliance: Positive indigenisation lists (3 lists by 2024; 509 items banned from import); defence exports target: Rs 50,000 crore by 2028
4. Pharmaceuticals: API Park scheme; PLI for pharma (Rs 15,000 crore) — reduce API import dependence from China
5. Import tariff increases on select items to incentivise domestic production

4.3 Production Linked Incentive (PLI) Schemes

India's most significant industrial policy innovation of the 2020s. Companies receive 4–6% financial incentive on incremental sales above a base year, for 4–6 years.

Sector	Outlay (Rs crore)	Key Companies/Impact
Mobile phones & components	41,000	Apple (Foxconn, Pegatron), Samsung — India 2nd largest mobile exporter
Pharmaceuticals	15,000	Domestic API production; Biocon, Sun Pharma
Medical devices	3,420	Diagnostics, imaging equipment
Automobiles & auto components	25,938	Hyundai, Suzuki, Tata Motors — EV focus
Advanced chemistry cell batteries	18,100	EV battery manufacturing ecosystem
Telecom & networking products	12,195	Nokia, Ericsson (local manufacturing)
Solar PV modules	4,500	Adani, First Solar — reduce China import dependency
White goods (ACs, LEDs)	6,238	Voltas, Havells
Food processing	10,900	Ready-to-eat, marine products
Specialty steel	6,322	SAIL, JSW Steel
Textiles (MMF)	10,683	Technical textiles, man-made fibres
Drones	120	IdeaForge, Garuda Aerospace
Total (14 sectors)	~1,97,000	—

4.4 PM Gati Shakti National Master Plan (2021)

Launched: October 13, 2021 | Purpose: Integrated multi-modal connectivity planning

• Digital platform integrating 16 ministries for coordinated infrastructure development
• Reduces project approval time; avoids duplication; enables holistic planning
• 5 industrial corridors: Delhi-Mumbai (DMIC), Bengaluru-Mumbai, Chennai-Bengaluru, Amritsar-Kolkata, East Coast Economic Corridor
• Target: bring down logistics cost from ~13% of GDP to 8% by 2030 (global benchmark ~8%)

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