What is Make in India 2.0?
Make in India 2.0 is the sector-focused phase of the Make in India initiative, which was launched on 25 September 2014. It focuses on 27 sectors implemented across various ministries, departments, and state governments, with the Department for Promotion of Industry and Internal Trade coordinating 15 manufacturing sectors and the Department of Commerce coordinating 12 service sectors.
The government has been explicit in Parliament that Make in India is an initiative and not a scheme with a fund or budget. In other words, it is an umbrella for policy, investment promotion, and reform, while the money flows through individual schemes such as Production Linked Incentive programs.
| Aspect | Make in India 1.0 (2014) | Make in India 2.0 |
|---|---|---|
| Approach | Broad national campaign to attract investment | Sector focused action plans with named owners |
| Sectors | 25 focus sectors initially | 27 sectors: 15 manufacturing and 12 services |
| Ownership | Central promotion by DPIIT | Ministries, departments and state governments, coordinated by DPIIT and the Department of Commerce |
| Support instruments | Ease of doing business, FDI liberalisation | PLI, National Single Window System, PM Gati Shakti, industrial land bank and park rating, procurement orders |
The 15 Manufacturing Sectors
- Aerospace and defense
- Automotive and auto components
- Pharmaceuticals and medical devices
- Biotechnology
- Capital goods
- Textiles and apparel
- Chemicals and petrochemicals
- Electronics system design and manufacturing
- Leather and footwear
- Food processing
- Gems and jewelry
- Shipping
- Railways
- Construction
- New and renewable energy
The 12 Service Sectors
- Information technology and IT-enabled services
- Tourism and hospitality services
- Medical value travel
- Transport and logistics services
- Accounting and finance services
- Audio-visual services
- Legal services
- Communication services
- Construction and related engineering services
- Environmental services
- Financial services
- Education services
The Schemes and Policies That Support It
- Production-linked incentive schemes: sector-specific incentives for incremental sales, currently across 14 sectors.
- National Single Window System: a digital platform to obtain multiple central and state clearances in one place.
- PM Gati Shakti and infrastructure pipelines: integrated planning of logistics and infrastructure, alongside the National Infrastructure Pipeline and industrial land bank.
- Industrial Park Rating System: benchmarks industrial parks on infrastructure and services to help investors choose locations.
- Procurement and quality policies: public procurement orders that give preference to locally made goods, phased manufacturing programs, and quality control orders.
Make in India, Atmanirbhar Bharat, and PLI: How They Differ
| Programme | What It Is | Nature |
|---|---|---|
| Make in India | Umbrella initiative launched in 2014 to make India a manufacturing and design hub | Policy initiative with no fund of its own |
| Atmanirbhar Bharat | 2020 self reliance campaign with a package of about Rs 20 lakh crore | Economic package and reform programme |
| PLI schemes | Incentives on incremental sales in 14 sectors | Financial scheme with defined outlay |
How MSMEs Can Use Make in India 2.0
- Map your product or service to one of the 27 sectors, since each sector has its own ministry and scheme set.
- Identify the relevant scheme for your sector, such as PLI supplier opportunities, textile parks, or electronics component support.
- Complete Udyam Registration and keep quality and compliance documents ready, since buyers and schemes usually ask for them.
- Use the National Single Window System for clearances and check state industrial policy for additional incentives.
- Register on GeM and track public procurement orders that prefer locally made goods.
- Approach large manufacturers and PLI beneficiaries as a supplier, since incentives push them to localize their supply chains.
Progress and Gaps
India has become the world's second largest mobile phone manufacturer, and government figures show defense, electronics, and pharmaceutical output rising strongly. India also recorded foreign direct investment inflows of about 81 billion dollars in FY 2024-25, according to government figures. At the same time, manufacturing's share of gross value added has hovered around 16 percent, below the long-term aspiration of 25 percent, which is why policy attention has shifted to logistics costs, technology adoption, and skills alongside incentives.
Key Takeaways
- Make in India 2.0 focuses on 27 sectors: 15 manufacturing sectors coordinated by DPIIT and 12 service sectors coordinated by the Department of Commerce.
- Make in India is an initiative, not a funded scheme, so benefits come through separate schemes such as PLI and state policies.
- Supporting instruments include PLI, the National Single Window System, PM Gati Shakti, industrial park rating and procurement preference orders.
- MSMEs should start by mapping their product to a sector and then pursuing the relevant scheme, supplier opportunity or procurement route.
- Manufacturing's GDP share has not yet reached the 25 percent aspiration, which keeps logistics, skills and technology adoption at the centre of policy.
FAQs
What is Make in India 2.0?
Make in India 2.0 is the current, sector-focused phase of the Make in India initiative launched on 25 September 2014. It concentrates on 27 priority sectors, of which 15 are manufacturing sectors coordinated by the Department for Promotion of Industry and Internal Trade and 12 are service sectors coordinated by the Department of Commerce.
Is Make in India a scheme with its own budget?
No. In replies to Parliament the government has clarified that Make in India is an initiative and not a scheme with a fund or budget of its own. Financial support comes through separate schemes run by different ministries, such as Production Linked Incentive schemes.
How is Make in India 2.0 different from the original Make in India?
The original programme, launched in 2014, was a broad campaign to attract investment and ease doing business. Make in India 2.0 narrows the focus to 27 sectors with action plans owned by specific ministries and state governments, and links them to supporting schemes such as PLI, the National Single Window System and infrastructure planning under PM Gati Shakti.
Which sectors are covered under Make in India 2.0?
The 15 manufacturing sectors are aerospace and defence, automotive and auto components, pharmaceuticals and medical devices, biotechnology, capital goods, textiles and apparel, chemicals and petrochemicals, electronics system design and manufacturing, leather and footwear, food processing, gems and jewellery, shipping, railways, construction, and new and renewable energy. The 12 service sectors span IT and IT enabled services, tourism and hospitality, medical value travel, transport and logistics, accounting and finance, audio visual, legal, communication, construction related engineering, environmental, financial and education services.
How can an MSME benefit from Make in India 2.0?
MSMEs benefit mainly through the schemes and policies that sit under it: procurement preferences for locally made goods, supplier opportunities to PLI beneficiaries, industrial parks and single window clearances, and state level incentives. An MSME should map its product to one of the 27 sectors and then look up the relevant ministry scheme.
What is the target for manufacturing in Make in India?
The initiative set goals of raising manufacturing growth to 12 to 14 percent per annum, creating 100 million additional manufacturing jobs, and increasing manufacturing's contribution to GDP, with a long term aspiration of a 25 percent GDP share that has not yet been reached.
Conclusion
If you want to work out which of the 27 Make in India 2.0 sectors and supporting schemes fit your business and prepare the registrations and documents that buyers and schemes expect, Growthora Advisory can guide you. Book a free consultation with our funding team today.
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