Section Article

THE MAKE IN INDIA INITIATIVE IN INDIA AND ITS IMPACT ON FOREIGN DIRECT INVESTMENT (FDI)
Author(s): Dr. J. P. Singh

Abstract
The Make in India initiative launched in 2014 by the Government of India represents a transformative policy framework aimed at positioning India as a global manufacturing hub. Beyond domestic industrial development the initiative targets a significant increase in foreign direct investment (FDI) across priority sectors such as automotive electronics pharmaceuticals defense manufacturing renewable energy textiles and information technology-enabled services. Post-2021 studies indicate that Make in India has positively influenced FDI inflows by implementing structural reforms easing regulatory bottlenecks enhancing investor facilitation mechanisms and promoting infrastructural development. This study examines the initiative’s impact on FDI using both quantitative and qualitative approaches integrating government reports industry surveys and peer-reviewed academic studies to provide a holistic assessment of investment patterns sectoral distribution and operational outcomes. Evidence suggests that while FDI inflows have grown substantially challenges such as bureaucratic hurdles inconsistent policy application skill shortages and global economic volatility remain critical factors influencing the initiative’s effectiveness. Furthermore the study explores the synergistic role of complementary reforms including Production Linked Incentive (PLI) schemes Startup India programs and digital infrastructure development in enhancing India’s attractiveness for foreign investors. Policy recommendations emphasize sustained reform continuity sectoral prioritization robust investment facilitation frameworks and international collaboration to strengthen long-term FDI growth. This research contributes to the broader understanding of policy-driven FDI promotion in emerging economies offering insights for both policymakers and global investors seeking to leverage India’s manufacturing potential.