What did Make in India accomplish?

• The Make in India (MI) policy was initiated in 2014 by the Union government to increase the manufacturing sector’s share in GDP and create 100 million additional industrial jobs by 2025.
• Despite a 7%-8% annual real GDP growth rate, the manufacturing sector’s performance was modest, with increasing net imports and modest employment expansion.
• The manufacturing real gross value added (GVA) growth rate has slowed down from 8.1 in 2001-12 to 5.5% in 2012-23.
• Manufacturing employment has declined from 12.6% in 2011-12 to 11.4% in 2022-23, with unorganised or informal sector manufacturing accounting for most employment.
• Agriculture’s share in the workforce increased from 42.5% in 2018-19 to 45.8% in 2022-23.
• This reversal of structural transformation is unprecedented in post-independent India and is a clear sign of premature de-industrialisation.
• The key to reversing de-industrialisation is re-imagining industrial policy to align trade and industrial policies to promote domestic value addition and learning.
• Protection policies should promote securing a dynamic comparative advantage, not offering cash subsidies.
• India should aim at investment-led growth and technological catching up, supported by domestic R&D and publicly funded development finance institutions.