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PolityFree till Sep 9

Make in India: Defence, Manufacturing, and Self-Reliance

July 19, 2026

TOPIC CLASSIFICATION

Subject: Governance / Economy | Topic: Industrial Policy Sub-topic: Make in India, Production Linked Incentive (PLI), Defence Manufacturing Prelims Focus: Launch year, sectors identified, defence FDI limits Mains Focus: Impact on manufacturing, self-reliance in defence, challenges

EXAMINER REASONING

Make in India is a recurring UPSC theme. Prelims asks about its inception year and sectors. Mains questions examine whether Make in India has succeeded in boosting manufacturing GDP share, and specifically the defence manufacturing ecosystem. The shift towards Atmanirbhar Bharat (self-reliance) is central.

Core Concept

Launched on September 25, 2014, Make in India is a national programme designed to transform India into a global manufacturing hub, attract foreign investment, foster innovation, and create jobs. It covers 27 sectors including defence, automotive, textiles, electronics, and pharmaceuticals.

Key Features of the Original Make in India

  • Sectors: 27 sectors identified (initially 25, later expanded).
  • FDI liberalisation: FDI caps raised in defence (100%), insurance (74%), railways, and space.
  • Ease of Doing Business: Single-window clearance, online applications, reduced compliances.
  • Intellectual Property: Comprehensive IPR policy (2016).
  • Industrial corridors: Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru, etc.
  • National Manufacturing Policy: Target to raise manufacturing GDP share to 25% by 2025 (still ~17%).

Defence Manufacturing under Make in India

  • FDI in defence: 100% allowed (automatic up to 74%, govt route beyond).
  • Defence Production and Export Promotion Policy (DPEPP) 2020: Target ₹1,75,000 crore production by 2025.
  • Positive Indigenisation Lists: 4 lists (over 5,000 items) — items not to be imported.
  • DRDO: Transfer of Technology (ToT) to private sector.
  • Flagship Platforms: Tejas (LCA), Arjun MBT, INS Vikrant (IAC-1), Dhanush howitzer, Akash missile, Astra BVRAAM.
  • Defence corridors: UP Defence Corridor (6 nodes), Tamil Nadu Defence Corridor (5 nodes).
  • Export: Defence exports from ₹1,500 cr (2014) to ~₹21,000 cr (2024–25).

PLI (Production Linked Incentive) Schemes

Sector

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Outlay
Achievement
Electronics (mobile)₹40,995 crApple/Foxconn suppliers
Pharmaceuticals₹15,000 crActive pharma ingredients
Automobiles & Auto components₹26,058 crEV push
Textiles₹10,683 crMMF apparel
Food processing₹10,900 crMarine, millet products
Telecom & networking₹12,195 crTelecom gear
Solar PV modules₹24,000 crDomestic cell manufacturing

Key Facts

  • Launch: Sept 25, 2014 (PM Modi at Vigyan Bhavan, Delhi).
  • FDI inflow: Record $84.8 billion in 2021–22; cumulative $1 trillion post-launch.
  • EoDB rank: India jumped from 142 (2014) to 63 (2019, World Bank); discontinued after 2020.
  • Manufacturing GDP share: Stagnant at ~17% (target 25%).
  • Defence exports: $2.8 billion (2024–25); 60% increase from previous year.
  • National Single Window System (NSWS): Single portal for business approvals.
  • Kerala's Make in India challenge: Watered down by state's resistance to certain reforms.
  • Atmanirbhar Bharat: Launched 2020 as broader self-reliance package (₹20 lakh crore stimulus).
  • Industrial Corridors: 6 corridors under National Industrial Corridor Development Corporation (NICDC).
  • Startup India: Launched 2016 in conjunction; 1.4 lakh DPIIT-recognised startups.

PYQ Table

YearQuestionMarks
2023"Make in India has not achieved its goal of raising manufacturing to 25% of GDP." Critically examine.15
2021Discuss the role of the Production Linked Incentive (PLI) scheme in boosting manufacturing.12
2020What is the significance of the positive indigenisation list for defence manufacturing?10
2018Explain the evolution of defence manufacturing in India since the launch of Make in India.15
2015"Make in India is not just about manufacturing but about transforming India's economic landscape." Discuss.20

Statement Elimination Guide

  1. "Make in India has successfully raised manufacturing to 25% of GDP." → False. Manufacturing GDP share is ~17%, well short of the 25% target.
  2. "FDI policy is the sole responsibility of the Make in India programme." → False. DPIIT and DEA handle FDI policy; Make in India is a promotion platform.
  3. "Defence manufacturing is fully indigenised under Make in India." → False. Positive indigenisation lists help, but India still imports critical platforms (engines, avionics, submarine parts).
  4. "Make in India and Atmanirbhar Bharat are the same." → False. Atmanirbhar Bharat (2020) is broader — includes PLI, fiscal stimulus, and self-sufficiency across all sectors, not just manufacturing.

Current Affairs Hook

  • 2025: India exports Tejas light combat aircraft to Malaysia (first LCA export).
  • 2024: 4th Positive Indigenisation List released (3,000 items); defence production crosses ₹1.5 lakh crore.
  • 2023: PLI electronics sees Apple ecosystem shift — Foxconn, Wistron, Pegatron set up plants.
  • 2022: INS Vikrant (IAC-1) commissioned — first aircraft carrier built in India.
  • 2021: Atmanirbhar Bharat packages for defence (₹1.45 lakh crore capex).
  • 2020: DPEPP announced; FDI in defence raised to 74% automatic route.

Interlinkages

  • Economy: PLI + EoDB reforms + GST = improving manufacturing ecosystem.
  • Defence: Strategic autonomy through indigenisation (Tejas, INS Vikrant).
  • Diplomacy: Defence exports to friendly foreign countries (Maldives, Vietnam, Malaysia).
  • Technology: DRDO-ISRO synergy (semiconductors, space defence).
  • Employment: Manufacturing growth needed for job creation (Economic Survey linkage).
  • MSME: PLI linked to MSME ancillaries in defence corridors.

Common Mistakes

  • Claiming Make in India has failed entirely (manufacturing share stagnant but FDI and defence production have grown).
  • Confusing Make in India (2014) with Atmanirbhar Bharat (2020) — the latter is broader.
  • Ignoring PLI schemes when discussing Make in India (PLI is a key instrument).
  • Assuming defence self-reliance is complete (India still imports 40–50% of defence needs).
  • Saying India is at 25% manufacturing GDP (it's ~17%).

Revision Snapshot

AspectDetail
LaunchSept 25, 2014
FocusManufacturing, FDI, EoDB, IPR
Defence FDI100% (74% automatic)
PLI schemes14 sectors, ₹2.5 lakh crore outlay
Manufacturing GDP~17% (target 25%)
Defence exports~₹21,000 cr (2024–25)
Positive lists4 lists; 5,000+ items
AtmanirbharLaunched 2020; broader self-reliance

Source Notes

  • DPIIT – Make in India Portal
  • Ministry of Defence – Annual Report 2024–25
  • Ministry of Finance – PLI Scheme Reports
  • World Bank – Doing Business Report 2020
  • RBI – FDI Inflow Statistics
  • Economic Survey 2024–25