Executive Summary:
The Ministry of Commerce and Industry addressed Lok Sabha question 276 regarding the Make in India initiative's performance, manufacturing growth, FDI inflows, PLI schemes, state-level policies, and global competitiveness. The response details measures taken to promote manufacturing, the National Manufacturing Mission, FDI data, PLI scheme details, and other initiatives. Annexures provide lists of manufacturing and service sectors and state-wise FDI equity inflow data.
Key Points / Main Content:
Make in India Initiative:
* Launched to establish India as a hub for manufacturing, design, and innovation.
* Focuses on 27 sectors, including 15 manufacturing sectors.
Manufacturing Sector Growth:
* Manufacturing sector GVA at constant prices increased from ₹15.60 lakh crore in FY 2013-14 to ₹28.25 lakh crore in FY 2023-24.
* The share of the manufacturing sector as a percentage of total GVA at constant prices increased from 17.2 in 2013-14 to 17.5 in 2023-24.
National Manufacturing Mission (NMM):
* Announced in Union Budget 2025-26 with an outlay of ₹100 crore.
* Emphasizes ease of doing business, future-ready workforce, a vibrant MSME sector, technology availability, and quality products.
Foreign Direct Investment (FDI):
* Details of state-wise FDI Equity inflow in the manufacturing sector from October 2019 to March 2025 and April 2014 to March 2025 are provided in Annexure II.
Production Linked Incentive (PLI) Schemes:
* Launched for 14 key sectors with an outlay of ₹1.97 lakh crore to enhance manufacturing capabilities and exports.
* Aims to attract investments, ensure efficiency, and promote economies of scale.
* Cumulative incentive amount of ₹21,534 crore disbursed as of 24.06.2025 under PLI Scheme for 12 sectors.
Other Major Initiatives:
* Startup India, National Single Window System, GIS enabled Land Bank, FDI policy reforms, PM Gati Shakti National Master Plan, Project Monitoring Group, industrial parks, ease of doing business improvements, compliance burden reduction, labor law rationalization, GST introduction, corporate tax rate reduction, public procurement policies, Phased Manufacturing Programme (PMP), and Quality Control Orders (QCOs).
Manufacturing and Service Sectors (Annexure I):
* Lists sectors including Aerospace and Defence, Automotive, Pharmaceuticals, IT, Tourism, and Education.
State-wise Manufacturing Breakup FDI (Annexure II):
* Provides FDI Equity Inflow amounts in USD Million for each state from October 2019 to March 2025.
* Total FDI inflow in the Manufacturing Sector from April 2014 to March 2025 is USD 1,84,151.50 Million.
Impact Analysis:
Government of India (Ministries and Departments):
* Impact: Responsible for implementing and monitoring the Make in India initiative, NMM, and PLI schemes.
* Action Required: Continue implementing policies, monitor progress, and adapt strategies as needed.
State Governments:
* Impact: Play a crucial role in attracting investment and generating employment through state-level manufacturing policies.
* Action Required: Develop and implement effective manufacturing policies, attract investments, and generate employment.
Manufacturing Sector Companies:
* Impact: Benefit from government initiatives such as PLI schemes, improved ease of doing business, and infrastructure development.
* Action Required: Invest in key sectors, enhance manufacturing capabilities, and improve global competitiveness.
Investors (Domestic and Foreign):
* Impact: Influenced by FDI policies, PLI schemes, and state-level incentives.
* Action Required: Evaluate investment opportunities in key sectors and states based on government policies and incentives.
Citizens/Workforce:
* Impact: Benefit from increased employment opportunities and economic growth.
* Action Required: Develop skills to meet the demands of the manufacturing sector and participate in the growing economy.
Key Entities Referenced
Make in India: An initiative by the Government of India to encourage manufacturing, design, and innovation in India.
Production Linked Incentive PLI schemes: Government schemes designed to enhance India's manufacturing capabilities and exports by providing incentives for production in key sectors.
National Manufacturing Mission NMM: A mission announced in the Union Budget 2025-26 to promote manufacturing with emphasis on ease of doing business, workforce readiness, MSME sector, technology availability, and quality products.
Ministry of Commerce and Industry: The Indian government ministry responsible for the promotion of industry and internal trade.
National Accounts Statistics: Data released by MoSPI (Ministry of Statistics and Programme Implementation) regarding Gross Value Added (GVA) in various sectors, including manufacturing.
Aatmanirbhar: India's vision of becoming self-reliant and enhancing its manufacturing capabilities and exports.
Delhi: A state in India.
Maharashtra: A state in India.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 276.
TO BE ANSWERED ON TUESDAY, THE 22ND JULY, 2025.
MAKE IN INDIA PERFORMANCE AND MANUFACTURING GROWTH
276. THIRU DAYANIDHI MARAN:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) the reasons for the Make in India initiative's failure to achieve its target of
increasing manufacturing GDP share from 15% to 25% by 2025, given
manufacturing share has declined to 13-14% in 2025, along with manufacturing
GDP data from 2014-2025, year-wise;
(b) the FDI inflows in the manufacturing sector during 2014–2025, including
comparative performance of leading manufacturing States and factors
contributing to differential performance, State-wise;
(c) the details of allocation and utilisation of the funds under Production-Linked
Incentive (PLI) schemes across States, including sector-wise distribution and
employment generation achieved;
(d) the details of the Government's assessment of State-level manufacturing
policies and their effectiveness in attracting investment and generating
employment, including best practices from high-performing States; and
(e) the details of India's current global ranking in manufacturing competitiveness
and export performance compared to other developing countries, along with the
revised strategy given that the original objectives were not met?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a): Government of India has taken several measures to promote the growth of
manufacturing sector and create more employment opportunities. ‘Make in
India’ initiative has been launched to make India a hub for manufacturing,
design, and innovation. Presently, Make in India focuses on 27 sectors
including 15 manufacturing sectors, implemented across various Ministries
and Departments and State Governments. The list of sectors is enclosed at
Annexure I.
Manufacturing sector in the country has experienced growth in the last decade.
As per the National Accounts Statistics released by MoSPI, manufacturing
sector’s Gross Value Added (GVA) at constant prices increased from ₹15.60
lakh crore in FY 2013-14 to ₹28.25 lakh crore in FY 2023-24. Further, the share
of the manufacturing sector as a percentage of total GVA at constant prices
increased from 17.2% in 2013-14 to 17.5% in 2023-24. (Source: National
Accounts Statistics 2025)To further the Make in India initiative, Government of India has announced the
National Manufacturing Mission (NMM) in the Union Budget 2025-26 with an
outlay of ₹ 100 crore. The Mission will lay emphasis on five focal areas i.e. ease
and cost of doing business; future ready workforce for in-demand jobs; a vibrant
and dynamic MSME sector; availability of technology; and quality products.
(b): The state-wise details of FDI Equity inflow reported in manufacturing sector
from October 2019 till March 2025 and FDI Equity inflow reported in
manufacturing sector during April 2014 till March 2025 is enclosed at
Annexure II.
(c) to (e): Further, keeping in view India’s vision of becoming ‘Aatmanirbhar’ and to
enhance India’s manufacturing capabilities and exports, Production Linked
Incentive (PLI) schemes have been launched for 14 key sectors with an outlay
of Rs. 1.97 lakh crore. The 14 sectors are: (i) Mobile Manufacturing and
Specified Electronic Components, (ii) Critical Key Starting Materials/Drug
Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of
Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals
Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii)
Electronic/ Technology Products, (ix) White Goods (ACs and LEDs), (x) Food
Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High
efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and
(xiv) Drones and Drone Components. These schemes have the potential of
significantly boosting production, increasing manufacturing output and
contributing to faster economic growth in future. The purpose of the PLI
Schemes is to attract investments in key sectors and cutting- edge technology;
ensure efficiency and bring economies of size and scale in the manufacturing
sector and make Indian companies and manufacturers globally competitive.
These schemes have the potential of significantly boosting production,
employment and economic growth over the next five years or so.
The schemes are applicable across India, and the selection of the investment
location is at the discretion of the applicants. Concerned Ministries/
Departments take various initiatives to encourage setting up of companies
across the country through respective action plans, programmes, schemes and
policies for the sectors being dealt by them, while States/UTs also have their
own Schemes for attracting investments.
Cumulative incentive amount of ₹ 21,534 crore have been disbursed as on
24.06.2025 under PLI Scheme for 12 sectors, namely Large Scale Electronics
Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices,
Pharmaceuticals, Telecom & Networking Products, Food Processing, White
Goods, Drones & Drone Components, Specialty Steel, Textile products and
Automobiles & Auto components.
The other major initiatives include Start-up India, National Single Window
System, GIS enabled Land Bank, Foreign Direct Investment (FDI) policy
reforms, PM Gati Shakti National Master Plan for integrated planning of
multimodal infrastructure, Project Monitoring Group to remove bottlenecks in
setting up of major infrastructure projects, setting up of industrial parks,
interventions to improve ease of doing business, measures for reduction incompliance burden, rationalization of labor laws, introduction of Goods and
Services Tax, reduction in the corporate tax rate, policy measures to boost
domestic manufacturing through public procurement orders, Phased
Manufacturing Programme (PMP) and Quality Control Orders (QCOs), to name
major ones.
*********ANNEXURE - I
ANNEXURES REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA
UNSTARRED QUESTION NO. 276 FOR ANSWER ON 22.07.2025.
Manufacturing Sectors
i. Aerospace and Defence
ii. Automotive and Auto Components
iii. Pharmaceuticals and Medical Devices
iv. Bio-Technology
v. Capital Goods
vi. Textile and Apparels
vii. Chemicals and Petro chemicals
viii. Electronics System Design and Manufacturing (ESDM)
ix. Leather & Footwear
x. Food Processing
xi. Gems and Jewellery
xii. Shipping
xiii. Railways
xiv. Construction
xv. New and Renewable Energy
Service Sectors
i. Information Technology & Information Technology enabled Services
(IT &ITeS)
ii. Tourism and Hospitality Services
iii. Medical Value Travel
iv. Transport and Logistics Services
v. Accounting and Finance Services
vi. Audio Visual Services
vii. Legal Services
viii. Communication Services
ix. Construction and Related Engineering Services
x. Environmental Services
xi. Financial Services
xii. Education Services
*******ANNEXURE - II
ANNEXURES REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA
UNSTARRED QUESTION NO. 276 FOR ANSWER ON 22.07.2025.
State-wise Manufacturing Breakup FDI Equity Inflow from October 2019 to
March 2025
S. State Name FDI Equity Inflow Amount (in USD Million)
No. (Manufacturing Sector)
1. Andhra Pradesh 856.28
2. Arunachal Pradesh 7.03
3. Assam 13.59
4. Bihar 8.40
5. Chandigarh 59.74
6. Chhattisgarh 120.56
7. Dadra and Nagar Haveli 172.32
and Daman and Diu
8. Delhi 12,506.77
9. Goa 148.05
10. Gujarat 12,624.55
11. Haryana 5465.62
12. Himachal Pradesh 359.41
13. Jammu & Kashmir 0.30
14. Jharkhand 2654.84
15. Karnataka 13,563.36
16. Kerala 329.05
17. Ladakh 0.00
18. Madhya Pradesh 459.19
19. Maharashtra 26,204.92
20. Manipur 0.00
21. Meghalaya 0.00
22. Nagaland 0.00
23. Odisha 44.49
24. Puducherry 18.52
25. Punjab 398.77
26. Rajasthan 644.80
27. Tamil Nadu 7332.04
28. Telangana 5637.66
29. Tripura 0.56
30. Uttar Pradesh 978.30
31. Uttarakhand 174.75
32. West Bengal 663.80
33. State not indicated 12.83
Gross Total: 91,460.52
*Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re- invested
earnings, and other capital. Sector/State/Country-wise details are maintained only for equity
component of FDI inflow.
FDI Equity Inflow Manufacturing Sector from April 2014 to March 2025
Time Period FDI Equity Inflow (in USD Million)
Manufacturing Sector
From April 2014 to March 2025 1,84,151.50
*Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re- invested
earnings, and other capital. Sector/State/Country-wise details are maintained only for equity
component of FDI inflow.
********