Prime Minister Narendra Modi has recently emphasized the importance of indigenous manufacturing, stating that "What the nation needs and what can be made in India should be made within India itself". This declaration reinforces the government's commitment to the 'Atmanirbhar Bharat' (Self-Reliant India) mission, encouraging local production and reducing dependence on foreign sources.

The 'Atmanirbhar Bharat Abhiyan,' launched in May 2020 in response to the COVID-19 pandemic, aims to promote economic self-sufficiency and resilience. The initiative builds upon the foundation of 'Make in India,' launched in 2014, which seeks to transform India into a global manufacturing hub by encouraging both domestic and foreign companies to invest in local manufacturing.

Key Objectives and Pillars

The 'Make in India' initiative has several key objectives:

• Increase Manufacturing Sector Growth: To increase the manufacturing sector's growth rate to 12-14% per annum.
• Job Creation: To create 100 million additional manufacturing jobs in the economy.
• GDP Contribution: To increase the manufacturing sector's contribution to GDP to 25%.

The 'Atmanirbhar Bharat' initiative rests on five pillars:

• Economy: Making quantum jumps, not incremental changes.
• Infrastructure: Representing modern India.
• System: Technology-enabled systems.
• Vibrant Demography: Leveraging India's large and dynamic population.
• Demand: Fully utilizing the power of demand and supply.

Government Initiatives and Reforms

The government has undertaken various reforms and initiatives to support these missions:

• Policy Reforms: Streamlining regulatory processes, improving the ease of doing business, and introducing reforms in various sectors.
• Financial Measures: Reducing corporate taxes, implementing financial market reforms, and consolidating public sector banks.
• Labor Codes: Enacting four labor codes to improve the labor market.
• Investment Promotion: Promoting both domestic and foreign investment through FDI policy reforms and investment outreach activities.
• Production-Linked Incentive (PLI) Schemes: Introducing PLI schemes across various sectors to boost domestic manufacturing.

Impact and Progress

The 'Make in India' initiative has experienced some success, marked by increased Foreign Direct Investment (FDI) inflows, which rose from US$ 45.14 billion in 2014-15 to a record high of US$ 70.95 billion in 2023-24. Various sectors have witnessed significant growth, including the automobile sector and the electronics sector. Merchandise exports for India reached an all-time high.

The 'Atmanirbhar Bharat Abhiyan' has also shown progress in reducing dependence on imports and promoting domestic production. For example, India has significantly reduced imports of air conditioners and increased domestic production of PPE kits and ventilators.

Challenges and Future Directions

Despite the progress, the initiatives face challenges. The share of manufacturing in GDP has fallen from 16.7% in 2013-2014 to 15.9% in 2023-2024. To achieve the goals of 'Atmanirbhar Bharat,' the government is urged to actively support the initiative by accelerating manufacturing activities and creating an environment conducive to attracting investments. Emphasis is placed on producing high-quality, 'Made in India' goods that are accepted worldwide. Digital transformation, collaboration between the public and private sectors, and promoting homegrown brands are also vital.