Dec 3, 2020

Make in India vs Made in India

The idea of self-made or ‘aatmanirbhar bharat’ has spurred a wave of nationalism across the country. The bold decision taken by the government and countless patriotic citizens of India, to ban Chinese apps and products, has opened up countless avenues for India to initiate, innovate and integrate its economy with the rest of the world. 

As a result of numerous opportunities India has been provided with, various initiatives such as the Make in India and Made in India, have been introduced by the government. We may often end up thinking that they both mean the same. However, even though they are interconnected and quite similar at the grassroots level, the effect they have on the economy and their causes widely differ.


By 2013, the GDP growth rate of India had dropped down to 6% and after the promise of the BRICS nation faded, India had been tagged as one of the ‘fragile five.’ India was on the brink of economic failure, and countless citizens and investors debated whether the world’s largest democracy was a boon or a bane. In order to facilitate investment, foster innovation, and enhance skill development, the dynamic Make in India project was launched in September 2014.

The fundamental aim of the initiative was to make India a world-level manufacturing powerhouse and attract investment from across the globe. With a strong focus sector such as automobiles, aviation, IT & BPN, pharmaceuticals, construction, defense manufacturing, electrical, machinery, food processing, textiles, and garments, etc, it was an invitation to investors from around the globe to invest and make in India.

It aimed to portray India as a credible business atmosphere and provide a stable framework for manufacturers. The manufacturing sectors contribute a little over 15% of the country’s GDP. Through this initiative, the BJP government aimed to grow this to a whopping 25%. Through this process, the government also aims to generate jobs to attract foreign direct investment and transform India into a leading manufacturing hub.

The Make in India initiative was instrumental in escalating the annual FDI inflow from 4.79 billion dollars in the FYI 2010-11 to 11.97 billion dollars in the FYI 2016-17. The ease of doing business index of India improved significantly as a result of simplification and relaxation of existing rules. The measures are taken to improve the country’s investment climate India jumped a massive 30 places to 100th. Under this initiative, 160 airports are being renovated and operationalized which has led to economic growth of 17.5%. Over the scenario of make in India and FDI was a positive summon to prospective investors from all over the world.


The Made in India initiative aims to promote domestic manufactures and encourages the ‘hyper-local approach.’ The initiative does not depend on any foreign direct investment and believes in efficient and effective utilization of resources, present within the country.

For a product to be tagged as ‘made in India,’ it must be borne out Indian factors of production i.e., land, labor, capital, entrepreneurship, and technology. With the aim of promoting local manufacturers, it will provide these manufacturers the opportunity to thrive and compete with foreign products and raise the standard of their product.


Summing up the difference between the two, the make in India project strongly focuses on domestic manufacturers and domestic factors of production, whereas, the Make in India aims at inviting foreign investors to invest and employ Indian factors of production to produce products. For example, Apple has recently shifted its manufacturing base from China to Chennai and has started manufacturing one of its flagship devices, the iPhone 11. This has been a huge major victory for India under the Make India project.

On the other hand, Amul, an Indian dairy and cooperative society, that purely used Indian resources to produce goods and services and is thus tagged as ‘Made in India.’ Moreover, the profits earned through the Make in India project would partially belong to the foreign investors, whereas the profits earned through the Made in India project would be retained within the economy.

Both the initiatives have been rolled out to benefit the economy in their own way and aim to make India self-reliant. If these initiatives are properly implemented, India will climb on the ladder of success and global recognition swiftly.

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