Lok Sabha Question No. 276 (UNSTARRED), answered on 2025-07-22
Subject: Make in India Performance and Manufacturing Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: Thiru Dayanidhi Maran

## 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 22 ND  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  in compliance  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.

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## 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

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## 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. No.   | State Name                               | Million)   |
|----------|------------------------------------------|------------|
| 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 and Daman and Diu | 172.32     |
| 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  |

## 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                                               |

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