Objectives of National Manufacturing Policy

Objectives of National Manufacturing Policy


Objectives of National Manufacturing Policy 


Question - What are the Objectives of National Manufacturing Policy Critically Examine the Make in India and Start up India 

Answer - India has always aimed to become a global manufacturing and innovation hub. Although the service sector has contributed significantly to economic growth, manufacturing is equally important for creating employment, increasing exports, improving productivity, and reducing dependence on imports. A strong manufacturing sector not only supports industrial development but also strengthens the overall economy. Recognizing this need, the Government of India introduced the National Manufacturing Policy in 2011 to accelerate industrial growth and increase the contribution of manufacturing to the Gross Domestic Product. Later, the Government launched Make in India in 2014 and Start up India in 2016 to promote investment, innovation, entrepreneurship, and employment generation. These initiatives are interconnected because they focus on transforming India into a competitive manufacturing destination while encouraging innovation and new business creation. However, despite achieving several milestones, these initiatives also face challenges related to infrastructure, skill development, regulatory issues, financing, and implementation. Therefore, it is important to understand the objectives of the National Manufacturing Policy and critically examine the achievements and limitations of Make in India and Start up India. 

National Manufacturing Policy 


The National Manufacturing Policy was announced in 2011 with the vision of making India's manufacturing sector globally competitive. It aimed to create an environment that supports industrial growth, technological advancement, and employment generation while ensuring sustainable development. The policy recognized that manufacturing plays a vital role in economic development because it creates jobs for both skilled and unskilled workers, encourages exports, and increases industrial productivity. Objectives of National Manufacturing Policy The first objective was to increase the share of manufacturing in India's Gross Domestic Product from around 16 percent to 25 percent. The second objective was to create approximately 100 million additional manufacturing jobs by 2022, especially for the growing youth population. The third objective was to improve global competitiveness of Indian manufacturing industries through better technology, innovation, and quality standards. The fourth objective was to increase domestic value addition and reduce dependence on imported manufactured goods. The fifth objective was to attract domestic and foreign investment into the manufacturing sector. The sixth objective was to improve industrial infrastructure through the development of National Investment and Manufacturing Zones. The seventh objective was to simplify business regulations and reduce unnecessary government approvals. The eighth objective was to promote green manufacturing and sustainable industrial development with efficient use of natural resources. The ninth objective was to strengthen small and medium enterprises by providing better access to finance, technology, and markets. The tenth objective was to encourage research and development for technological advancement and innovation. Key Features of National Manufacturing Policy The policy proposed the establishment of National Investment and Manufacturing Zones where world class infrastructure would be developed to attract industries. It promoted public private partnerships for infrastructure development. The policy encouraged skill development through industrial training institutions and vocational education. It focused on reducing compliance burden by simplifying industrial regulations. The policy promoted environmentally sustainable manufacturing practices. It emphasized technology acquisition and innovation for improving industrial productivity. Importance of Manufacturing Sector Manufacturing contributes significantly to economic growth. It creates large scale employment opportunities. It supports exports and improves foreign exchange earnings. It encourages balanced regional development. Manufacturing reduces poverty by creating income opportunities. It strengthens supply chains and industrial ecosystems. It promotes technological innovation and industrial modernization. A strong manufacturing sector reduces import dependence and improves self reliance. Make in India Make in India was launched on 25 September 2014 with the objective of transforming India into a global manufacturing hub. It aimed to attract investments, encourage innovation, build world class infrastructure, improve ease of doing business, and create employment opportunities. The initiative focused on twenty five priority sectors including automobiles, electronics, defence manufacturing, railways, renewable energy, pharmaceuticals, chemicals, biotechnology, textiles, aviation, food processing, and information technology. Objectives of Make in India Increase manufacturing growth. Generate employment opportunities. Attract Foreign Direct Investment. Improve ease of doing business. Promote innovation and technology. Develop industrial infrastructure. Increase exports. Reduce import dependence. Strengthen domestic industries. Support skill development. Encourage entrepreneurship. Promote digital governance. Major Reforms under Make in India Foreign Direct Investment norms were liberalized in many sectors. Industrial licensing procedures were simplified. Online approval systems were introduced. Corporate tax reforms encouraged investment. Goods and Services Tax created a unified national market. Labour law reforms were initiated in several states. Digital governance reduced paperwork and improved transparency. 

Production Linked Incentive schemes 


Encouraged domestic manufacturing. Infrastructure projects including industrial corridors, highways, railways, ports, and logistics parks were expanded. Achievements of Make in India India became one of the world's leading destinations for Foreign Direct Investment. Mobile phone manufacturing increased significantly. India emerged as a major exporter of smartphones. Defence manufacturing witnessed greater domestic production. The electronics manufacturing sector expanded rapidly. Automobile production continued to grow. Renewable energy manufacturing improved. Several multinational companies established manufacturing facilities in India. Industrial corridors improved connectivity. Ease of Doing Business ranking improved considerably over the years. Digital governance reduced administrative delays. Employment opportunities increased in several sectors. Exports of manufactured goods improved in many industries. Limitations of Make in India Manufacturing share in Gross Domestic Product has remained below the targeted level. Employment generation has not reached expected levels. Infrastructure gaps continue in many regions. Land acquisition remains difficult. High logistics costs reduce competitiveness. Small and medium enterprises face financial challenges. Skill shortages affect industrial productivity. Research and development expenditure remains relatively low. Dependence on imported components continues in several industries. Global economic uncertainties affected investment flows. Implementation varies across different states. Environmental concerns remain significant. Start up India Start up India was launched on 16 January 2016 to promote entrepreneurship, innovation, and job creation. The initiative encourages young entrepreneurs to establish innovative businesses that solve social and economic problems while contributing to national development. The scheme provides financial support, tax benefits, easier compliance, intellectual property assistance, incubation facilities, and market access. Objectives of Start up India Promote entrepreneurship. Encourage innovation. Generate employment. Support technology driven businesses. Provide easier access to finance. Promote research and development. Simplify regulatory procedures. Strengthen intellectual property protection. Encourage women entrepreneurs. Support rural entrepreneurship. Develop startup ecosystems. Increase global competitiveness. Features of Start up India Tax exemptions for eligible startups. Fund of Funds to support startup financing. Startup India Seed Fund Scheme. Self certification under labour and environmental laws. Faster patent examination. Lower patent filing costs. Startup recognition through online registration. Incubation centres in educational institutions. Innovation support through Atal Innovation Mission. Government procurement opportunities. Mentorship and networking support. Achievements of Start up India India became the third largest startup ecosystem in the world. Thousands of startups received government recognition. Numerous unicorn companies emerged. Employment generation increased significantly. Technology based entrepreneurship expanded rapidly. Digital payment companies experienced remarkable growth. Health technology startups improved healthcare access. Education technology startups transformed online learning. Agricultural technology startups supported farmers. Women entrepreneurs received greater recognition. Innovation culture strengthened among young people. Foreign investment into startups increased. Global investors showed growing confidence in Indian entrepreneurship. Limitations of Start up India Most startups are concentrated in metropolitan cities. Rural entrepreneurship remains limited. Access to venture capital is unequal. Many startups fail during the initial years. Regulatory compliance remains challenging for smaller firms. Market competition is intense. Research commercialization remains weak. Infrastructure gaps affect startup growth. Funding availability is limited beyond early stages. Skilled workforce shortages affect advanced technology startups. Global economic slowdown affects investment. Profitability remains a challenge for many startups. Critical Examination of Make in India Make in India has successfully attracted global attention and improved India's image as an investment destination. 

Foreign Direct Investment 


Has increased, infrastructure development has accelerated, and several manufacturing sectors have expanded. Mobile phone production, electronics manufacturing, renewable energy equipment, and defence production have shown encouraging progress. However, the initiative has not fully achieved its ambitious objectives. Manufacturing has not yet contributed twenty five percent of Gross Domestic Product. Employment generation remains below expectations. Logistics costs are higher than many competing countries. Land acquisition delays, infrastructure shortages, skill gaps, and regulatory complexities continue to discourage some investors. Dependence on imported raw materials and intermediate goods also remains a significant concern. The initiative has laid a strong foundation, but continuous reforms and better implementation are necessary to realize its full potential. Critical Examination of Start up India Start up India has transformed India's entrepreneurial ecosystem. It has encouraged innovation, promoted digital technology, and inspired millions of young entrepreneurs. Indian startups have achieved global recognition in sectors such as financial technology, education technology, healthcare, agriculture, artificial intelligence, and e commerce. Despite these achievements, several challenges remain. Startup success is concentrated mainly in urban areas. Rural entrepreneurs often face limited access to finance, mentorship, internet connectivity, and incubation facilities. Many startups struggle with sustainability and profitability after initial funding. Bureaucratic procedures have improved but are not completely simplified across all states. Therefore, while Start up India has strengthened innovation, more efforts are needed to create an inclusive entrepreneurial ecosystem covering rural regions and smaller cities. Comparison between Make in India and Start up India Make in India mainly focuses on expanding manufacturing and attracting industrial investment, whereas Start up India focuses on innovation and entrepreneurship. Make in India encourages large industries and manufacturing companies while Start up India supports new business ideas and technology driven enterprises. Make in India primarily attracts domestic and foreign investors whereas Start up India encourages entrepreneurs and innovators. Both initiatives generate employment, promote economic growth, improve competitiveness, and contribute to national development. Together they strengthen India's industrial and innovation ecosystem. Challenges Ahead India must continue improving infrastructure including roads, railways, ports, airports, and logistics. Skill development programs should match industry requirements. Research and development investment should increase. Financial support for small businesses should become more accessible. Labour market reforms should continue. Regulatory compliance should become simpler. Technology adoption should increase across industries. Export competitiveness should improve. Green manufacturing should receive greater emphasis. Balanced regional industrial development should be promoted. Way Forward Strengthen industrial corridors and logistics infrastructure. Promote advanced manufacturing technologies including automation and artificial intelligence. Increase public and private investment in research and innovation. Improve coordination between central and state governments. Expand startup support to rural and semi urban areas. Enhance vocational education and industry linked skill development. Support small and medium enterprises with affordable finance and technology. Promote export oriented manufacturing. Encourage sustainable industrial practices. Improve ease of doing business through digital governance and transparent regulations. Strengthen collaboration between universities, industries, and research institutions. Increase women's participation in entrepreneurship and manufacturing.  The National Manufacturing Policy, Make in India, and Start up India represent important milestones in India's economic transformation. The National Manufacturing Policy established a long term vision for strengthening manufacturing, creating employment, and improving industrial competitiveness. Make in India accelerated investment, promoted manufacturing, and improved India's position as a global production destination. Start up India created a vibrant innovation ecosystem and encouraged entrepreneurship among millions of young Indians. Although substantial progress has been made, many objectives remain partially achieved due to infrastructure gaps, skill shortages, financing constraints, regulatory challenges, and global economic uncertainties. Continued reforms, effective implementation, technological advancement, and inclusive development are essential for achieving sustainable industrial growth. By combining strong manufacturing capabilities with innovation driven entrepreneurship, India can move closer to becoming a globally competitive, self reliant, and economically resilient nation while creating large scale employment and improving the quality of life for its people.


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