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On a fast-track growth
Articles- Oct 04,24
On September 25, 2024, Make in India initiative completed 10 years. Lauding the country’s achievements in manufacturing, Prime Minister Narendra Modi, in a LinkedIn post, described the initiative as a roaring success that has transformed India from a nation reliant on imports to an emerging manufacturing hub.
On September 25, 2024, Make in India initiative completed 10 years. Lauding the country’s achievements in manufacturing, Prime Minister Narendra Modi, in a LinkedIn post, described the initiative as a roaring success that has transformed India from a nation reliant on imports to an emerging manufacturing hub.
To strengthen the country's manufacturing sector and reduce reliance on imports, the government launched the Production Linked Incentive (PLI) scheme for 14 key sectors, with a budget of ?1.97 trillion. Since its introduction in 2020, the PLI scheme, which provides 4-6 per cent cash incentives on incremental sales to manufacturers, has attracted investments of ?1.4 trillion ($16.73 billion). This has led to manufacturing output worth ?12 trillion ($143.4 billion), the creation of 8.5 lakh jobs, and exports totaling ?4 trillion ($47.8 billion). The scheme's success has been varied—sectors like mobile phones, telecom, pharmaceuticals, drones, and food processing have shown strong performance, while industries such as automobiles, auto components, textiles, ACC batteries, specialty steel, white goods, and medical devices have lagged behind.
Despite the completion of 10 years of the Make in India program, the share of manufacturing in India's GDP has decreased from 16.7 per cent in 2013-14 to 15.9 per cent in 2023-24, falling short of the government's target of 25 per cent by 2030. Experts note that while India's factory gate costs are on par with countries like Mexico, Vietnam, and Bangladesh, higher logistics costs reduce its competitiveness.
To address this, the government introduced the PM Gati Shakti National Master Plan in October 2021, aimed at facilitating data-driven decisions for the integrated planning of multimodal infrastructure, thereby reducing logistics costs. Indian Railways plays a significant role in this initiative, enhancing industrial linkages and supply chain efficiency. The Union government has identified 434 railway projects across three PM Gati Shakti economic corridors, spanning 40,900 km, with an investment of approximately ?11.2 trillion.
Over the past decade, the Government of India has significantly ramped up infrastructure investments, with Indian Railways being one of the primary beneficiaries. The capital expenditure for Indian Railways has risen more than ninefold, from ?281.74 billion in 2013-14 to ?2.652 trillion in 2024-25. The government is heavily investing in expanding Vande Bharat and Metro services, enhancing freight cargo capacity, building rail infrastructure, and developing high-speed trains, creating substantial growth opportunities for stakeholders in the sector. It's no surprise that the top three spots in SME's list of Top 100 Engineering Companies in India for 2024 are held by firms (Jupiter Wagons, Titagarh Rail Systems, and Texmaco Rail) that are key suppliers to Indian Railways.
Alongside railways, the road sector has been a major priority for the government in its infrastructure development initiatives. To explore the latest advancements in road construction technologies and equipment, visit the RAHSTA (Roads & Highways Sustainable Technologies & Advancements) Expo, scheduled for October 9-10 at the Jio World Convention Centre in Mumbai. On October 10, SME and Equipment India will co-host a CEO Panel Discussion during the Expo to discuss the Rahsta (road) ahead for the construction equipment industry. To participate, register at www.RAHSTAexpo.com.
See you at RAHSTA Expo 2024!
Make in India
manufacturing
Prime Minister Narendra Modi
automobiles
auto components
textiles
ACC batteries
specialty steel
logistics costs
434 railway projects
Top 100 Engineering Companies
RAHSTA
construction equipment industry
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