Modi government’s flagship scheme, ‘Make in India’ was launched with the aim to boost the manufacturing sector in India and promote the nation as an investment destination for manufacturers. However, the scheme hasn’t been able to boost up the share of the manufacturing industry.
It’s been almost four years since the launch of Modi government’s ‘Make in India’ initiative, which targeted to increase the share of manufacturing sector in the country’s gross domestic product (GDP) to 25% by 2022 and also aimed to create 100 million additional jobs by 2022 in the manufacturing sector alone.
However, according to the World Bank data, the share of manufacturing in India’s GDP seems to be falling. The manufacturing industry in India had a 17.4 percent in country’s overall GDP in 2006.
When the scheme was launched in September 2014, the share of manufacturing in GDP did rise marginally from 15.06 percent in 2014 to 15.4 percent in 2015 but has continuously been falling since then.
Another data point which measures manufacturing growth is Index of industrial production (IIP). While manufacturing GDP measures the value of the goods produced, IIP measures the change in total output. India’s IIP data also does not portray an encouraging trend. The manufacturing IIP grew at 3 percent during 2015-16, and the growth increased to 4.9 percent in 2016-17 but again fell to 4.5 percent in the last fiscal. Even if we look at the monthly IIP growth in the manufacturing sector, it marginally picked up for a brief period, after the launch of the scheme, but has been on a falling trajectory since last few months.