EVOLUTION OF INDIA’S INDUSTRIAL STRATEGY

ARTICLE 2

EVOLUTION OF INDIA’S INDUSTRIAL STRATEGY

1️⃣ Conceptual Framing: Industrial Policy as a Three-Phase Evolution

(GS-III: Indian Economy – Industrial Policy)

Phase I – Make in India (2014)

• Objective: Transform India into global manufacturing hub.
• Target: Raise manufacturing share from ~15% to 25% of GDP.
• Focus:
• • Attract FDI
  • Expand domestic manufacturing capacity
  • Job creation at scale
  • Integration into global value chains (GVCs)

Phase II – Aatmanirbhar Bharat (2020)

• Trigger: COVID supply chain disruptions.
• Strategic shift:
• • Resilience over mere scale.
  • Reduce import dependence in critical sectors.
  • Promote domestic capability in defence, electronics, semiconductors.

Phase III – Viksit Bharat 2047

• Long-horizon ambition.
• Aim:
• • Innovation-driven growth.
  • Advanced manufacturing leadership.
  • Sustainable industrialisation.
  • Global competitiveness with technological sovereignty.

Analytical Insight

India’s industrial strategy evolved:

From scale-seeking → to resilience-building → to technology-driven global ambition.

PART II: MAKE IN INDIA – AMBITION VS OUTCOMES

2️⃣ Manufacturing Share – Structural Plateau

(GS-III: Growth & Development)

Observed Trends

• Manufacturing share remained around mid-teens.
• Did not approach 25% target.
• Growth modest compared to expectations.

Structural Constraints

• Logistics inefficiencies.
• Infrastructure gaps.
• Low R&D intensity.
• Assembly-heavy manufacturing.

Analytical Interpretation