Make in India Completes 12 Years: FDI, PLI and Electronics Figures

The Make in India initiative completed 12 years on 25 September 2026, having been launched on 25 September 2014. The Prime Minister marked the day by pointing to higher domestic production, investment and exports. Government data released alongside the anniversary show record foreign direct investment of USD 94.53 billion in FY 2025-26 and cumulative inflows of USD 843 billion over the twelve years. Electronics and mobile phone manufacturing recorded the sharpest growth. The Production Linked Incentive schemes and the defence production numbers were also highlighted. The data set is highly usable for economy questions in every exam.

What Happened

The Make in India initiative completed twelve years on 25 September 2026. Prime Minister Narendra Modi marked the anniversary with the message, "More made in India. More investment in India. More exports from India. A transformation visible across sectors!" The Minister of Commerce and Industry, Piyush Goyal, said the focus had moved from manufacturing for the domestic market to manufacturing that is globally competitive. Government data covering FDI, electronics, mobile phones, the Production Linked Incentive schemes and defence production were released to mark the day.

When & Where

The initiative was launched on 25 September 2014 and the twelfth anniversary fell on 25 September 2026. The programme is national in scope and is run from New Delhi by the Department for Promotion of Industry and Internal Trade. Its effects are concentrated in the electronics clusters of Uttar Pradesh, Tamil Nadu and Karnataka, and in the automobile and pharmaceutical belts across western and southern India.

Who Is Involved

Department for Promotion of Industry and Internal Trade (DPIIT) — the nodal department that runs the initiative.
Ministry of Commerce and Industry — the parent ministry, headed by Piyush Goyal.
Ministry of Defence — responsible for the indigenous defence production figures.
Ministry of Electronics and Information Technology — drives the electronics and mobile manufacturing PLI schemes.
State governments — provide land, power and single-window clearances that decide where the investment lands.

How It Works

The initiative opens sectors to higher foreign direct investment, much of it through the automatic route, so that investors do not need prior government approval.
It offers production-linked incentives, meaning a manufacturer is paid a percentage of incremental sales only after producing and selling, not merely for announcing a plant.
It reduces regulatory friction through single-window clearance systems, so an investor deals with one interface instead of many departments.
It uses tariff and phased manufacturing programmes to pull component making into India, so that assembly gradually deepens into full manufacturing.
It links public procurement rules to domestic value addition, which creates guaranteed demand for Indian-made goods, especially in defence.
It tracks outcomes through investment, production, export and employment data, so that incentive payouts are tied to verified performance.

Why It Matters

Economic angle: manufacturing raises the share of tradable goods in output, which improves export capacity and cushions the current account.
Employment angle: the PLI schemes alone are credited with 14.6 lakh direct and indirect jobs as of 31 March 2026, which matters for a young workforce.
Strategic angle: indigenous defence production rising to Rs 1.78 lakh crore in FY 2025-26 reduces dependence on imported equipment.
Policy angle: the anniversary data set is the government's own scorecard, and it is the base against which later targets and criticisms are measured.

Historical Background

Make in India was launched on 25 September 2014 with the aim of turning India into a global manufacturing and innovation hub. It began with a focus on 25 sectors and was later reframed as Make in India 2.0 covering 27 sectors, split into 15 manufacturing sectors and 12 services sectors. The Atmanirbhar Bharat Abhiyan announced in 2020 gave the programme a self-reliance framing and added demand-side measures. The Production Linked Incentive framework, extended across 14 sectors, became the main financial instrument of the initiative. Over the twelve years the emphasis shifted from attracting assembly plants to building component ecosystems and export capacity.

Previous Related Events

In 2024 the initiative completed ten years, and the government published a decadal review of investment, production and export outcomes.
In 2025 the eleventh anniversary was marked with data showing continued growth in electronics and mobile phone exports.
In June 2026 the government reported that India had attracted about USD 843 billion in FDI between FY 2014-15 and FY 2025-26, and that more than 90 percent of equity inflows came through the automatic route.

Static GK Connection

Foreign Direct Investment routes: India allows FDI through the automatic route, where no prior approval is needed, and the government route, where approval is required. Most sectors are now on the automatic route.
Production Linked Incentive: an output-based subsidy paid on incremental sales of goods manufactured in India, designed to reward actual production rather than announced capacity.
Phased Manufacturing Programme: a tariff structure that raises duties on imported components in steps, pushing firms to localise parts over time.
National Single Window System: a single online platform connecting 32 central ministries and 34 states and union territories for investor approvals.

India & World Comparison

India is the world's second-largest mobile phone manufacturer by volume, behind China. In pharmaceuticals India ranks third globally by volume and eleventh by value, based on 2024-25 data. On the ease of doing business, India stood at 63rd place in the World Bank's Doing Business 2020 report, which was the last edition published before the ranking was discontinued. Compared with East Asian manufacturing economies, India's manufacturing share of output remains lower, and closing that gap is the stated purpose of the incentive schemes. The USD 94.53 billion FDI inflow in FY 2025-26 places India among the largest recipients of foreign investment in the developing world.

Future Impact

The FY 2026-27 FDI number will be the first test of whether the record inflow of FY 2025-26 can be sustained.
PLI disbursement in later years will reveal how much of the Rs 2.40 lakh crore in committed investment converts into sustained output.
Deeper component manufacturing in electronics is the next stated target, moving beyond final assembly.
Defence exports and indigenous production are expected to grow further from the Rs 1.78 lakh crore recorded in FY 2025-26.

🔑 Key Points for Revision

Make in India was launched on 25 September 2014 and completed 12 years on 25 September 2026.
The initiative covers 27 sectors: 15 manufacturing and 12 services.
Nodal department is the Department for Promotion of Industry and Internal Trade.
Parent ministry is the Ministry of Commerce and Industry, headed by Piyush Goyal.
Highest annual FDI inflow was USD 94.53 billion in FY 2025-26.
Cumulative FDI from FY 2014-15 to FY 2025-26 was USD 843 billion.
That cumulative figure is 169 percent higher than the previous twelve years.
Electronics production grew from Rs 1.9 lakh crore to Rs 13.11 lakh crore.
Mobile phone production grew from Rs 18,000 crore to Rs 6.27 lakh crore.
India is the second-largest mobile phone manufacturer in the world by volume.
PLI investment reached Rs 2.40 lakh crore as of 31 March 2026.
PLI production and sales reached Rs 23.8 lakh crore; exports Rs 15.2 lakh crore.
PLI schemes created 14.6 lakh direct and indirect jobs.
Indigenous defence production rose from Rs 46,429 crore in 2014-15 to Rs 1.78 lakh crore in FY 2025-26.
India ranks third globally by volume and eleventh by value in pharmaceuticals, on 2024-25 data.

🧠 Concept Link (Static GK Deep Dive)

Core Concept: Production Linked Incentive as an Industrial Policy Tool

Definition: a PLI scheme pays a manufacturer an incentive calculated as a share of incremental sales of goods produced in India over a base year.
Constitutional / Legal Basis: PLI schemes are executive schemes approved by the Union Cabinet and funded through budgetary allocation; they are not created by a dedicated statute.
Scientific / Economic Principle: the tool works on the infant-industry and scale-economy logic, that temporary support lets domestic producers reach the volumes at which they become cost-competitive.
Link to this event: the twelfth-anniversary data show PLI investment of Rs 2.40 lakh crore and production of Rs 23.8 lakh crore as of 31 March 2026.
Origin & History: the framework grew out of the Make in India initiative launched in 2014 and was scaled up under the Atmanirbhar Bharat Abhiyan announced in 2020.
Key milestone 1: Make in India 2.0 reframed the programme around 27 sectors, 15 in manufacturing and 12 in services.
Key milestone 2: the initiative completed ten years in 2024, when the first full decadal review was published.
Related Acts / Schemes / Treaties: Atmanirbhar Bharat Abhiyan; the Phased Manufacturing Programme; the National Single Window System.
Nodal Ministry / Body: the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry; individual PLI schemes are run by their own line ministries.
India-specific relevance: manufacturing employs a smaller share of India's workforce than services, so output-linked incentives target that structural gap.
Global comparison: East Asian economies used similar export-linked incentives during their industrialisation, though usually with tighter export conditions attached.
Data point: PLI schemes accounted for exports of Rs 15.2 lakh crore as of 31 March 2026.
Common exam angle: examiners ask for the launch date of Make in India, the number of sectors, the nodal department, and the difference between automatic and government FDI routes.
Easy memory hook: "2014 launch, 27 sectors, 15 goods plus 12 services."

❓ Practice MCQs

Q1. On which date was the Make in India initiative launched? [Easy]

A) 15 August 2014

B) 25 September 2014

C) 2 October 2014

D) 1 January 2015

Answer: B

Explanation: The initiative was launched on 25 September 2014 and completed 12 years on 25 September 2026.

Q2. How many sectors does the Make in India initiative cover? [Easy]

A) 21 sectors

B) 24 sectors

C) 27 sectors

D) 31 sectors

Answer: C

Explanation: It covers 27 sectors, comprising 15 manufacturing sectors and 12 services sectors.

Q3. What was India's FDI inflow in FY 2025-26, as reported at the twelfth anniversary of Make in India? [Moderate]

A) USD 71.28 billion

B) USD 81.04 billion

C) USD 94.53 billion

D) USD 118.60 billion

Answer: C

Explanation: USD 94.53 billion was reported as India's highest ever annual FDI inflow.

Q4. Which department is the nodal agency for the Make in India initiative? [Moderate]

A) Department for Promotion of Industry and Internal Trade

B) Department of Economic Affairs

C) Department of Commerce

D) Department of Expenditure

Answer: A

Explanation: DPIIT, under the Ministry of Commerce and Industry, is the nodal department for the initiative.

Q5. Electronics production in India grew from Rs 1.9 lakh crore in FY 2014-15 to which figure in FY 2025-26? [Moderate]

A) Rs 6.27 lakh crore

B) Rs 9.40 lakh crore

C) Rs 13.11 lakh crore

D) Rs 23.8 lakh crore

Answer: C

Explanation: Electronics production reached Rs 13.11 lakh crore in FY 2025-26; Rs 6.27 lakh crore was the mobile phone figure.

Q6. Which statement about Production Linked Incentive schemes is correct? [Tricky]

A) The incentive is paid when a company announces a new plant

B) The incentive is paid as a share of incremental sales of goods manufactured in India

C) The incentive is a tax exemption granted at the time of import of machinery

D) The incentive is a one-time capital grant fixed by the state government

Answer: B

Explanation: PLI is an output-based incentive tied to incremental sales, which is why production and sales figures are the key metric.

Q7. As of 31 March 2026, what was the actual investment attracted under PLI schemes? [Tricky]

A) Rs 1.78 lakh crore

B) Rs 2.40 lakh crore

C) Rs 15.2 lakh crore

D) Rs 23.8 lakh crore

Answer: B

Explanation: Rs 2.40 lakh crore was the investment figure; Rs 23.8 lakh crore was production and sales and Rs 15.2 lakh crore was exports.

Q8. India's rank in the global pharmaceutical industry, on 2024-25 data, is: [Tricky]

A) First by volume and third by value

B) Third by volume and eleventh by value

C) Eleventh by volume and third by value

D) Second by volume and fifth by value

Answer: B

Explanation: India ranks third by volume and eleventh by value, a gap that reflects its strength in generic medicines.

📜 Previous Year Question Style (PYQ)

PYQ 1:

Under India's foreign direct investment policy, the "automatic route" means that:

A) Investment needs prior approval of the Union Cabinet

B) Investment needs no prior approval of the Government or the Reserve Bank of India

C) Investment is permitted only in public sector undertakings

D) Investment is routed compulsorily through a state government agency

Answer: B

Explanation: Under the automatic route no prior government approval is needed, and more than 90 percent of India's equity inflows use this route.

PYQ 2:

Consider the following statements about the Make in India initiative:

It was launched on 25 September 2014.
It currently covers 27 sectors, of which 15 are manufacturing sectors.
Its nodal department is the Department of Economic Affairs in the Ministry of Finance.

Which of the above statements is/are correct?

A) 1 only

B) 1 and 2 only

C) 2 and 3 only

D) All of the above

Answer: B

Explanation: Statements 1 and 2 are correct. Statement 3 is wrong because the nodal department is DPIIT under the Ministry of Commerce and Industry.

PYQ 3:

Match the following figures reported at the twelfth anniversary of Make in India:

Cumulative FDI, FY 2014-15 to FY 2025-26 — (i) Rs 13.11 lakh crore
Electronics production, FY 2025-26 — (ii) Rs 1.78 lakh crore
Indigenous defence production, FY 2025-26 — (iii) USD 843 billion

A) 1-(i), 2-(ii), 3-(iii)

B) 1-(ii), 2-(iii), 3-(i)

C) 1-(iii), 2-(i), 3-(ii)

D) 1-(iii), 2-(ii), 3-(i)

Answer: C

Explanation: Cumulative FDI was USD 843 billion, electronics production was Rs 13.11 lakh crore and defence production was Rs 1.78 lakh crore.

✍️ Mains Answer Pointers

Question 1 (150 words): Assess the performance of the Production Linked Incentive schemes in achieving the objectives of Make in India.

The PLI schemes have delivered measurable output. As of 31 March 2026 they had drawn actual investment of Rs 2.40 lakh crore, supported production and sales of Rs 23.8 lakh crore, generated exports of Rs 15.2 lakh crore and created 14.6 lakh direct and indirect jobs.

The design explains much of this. Because the incentive is paid on incremental sales rather than on announced capacity, firms are rewarded only after producing, which filters out projects that exist only on paper. Electronics shows the effect most clearly, with production rising from Rs 1.9 lakh crore in FY 2014-15 to Rs 13.11 lakh crore in FY 2025-26.

The open question is depth. Much of the gain sits in final assembly rather than component making. Extending incentives down the component chain, and holding firms to export commitments, would convert scale into genuine competitiveness.

Question 2 (250 words): Twelve years after its launch, examine whether Make in India has changed the structure of the Indian economy, and identify the challenges that remain.

Make in India was launched on 25 September 2014 to make India a global manufacturing and innovation hub. Twelve years on, the headline numbers are strong. Cumulative FDI between FY 2014-15 and FY 2025-26 reached USD 843 billion, which is 169 percent higher than the preceding twelve years, and FY 2025-26 alone brought in a record USD 94.53 billion.

Sectoral change is visible where incentives were sharpest. Electronics production rose from Rs 1.9 lakh crore to Rs 13.11 lakh crore, mobile phone production from Rs 18,000 crore to Rs 6.27 lakh crore, and India became the world's second-largest mobile phone manufacturer by volume. Indigenous defence production rose from Rs 46,429 crore in 2014-15 to Rs 1.78 lakh crore in FY 2025-26, a strategic gain as much as an economic one.

Structurally, however, the change is uneven. The gains cluster in a few capital-intensive sectors, while labour-intensive segments such as textiles and leather have moved less. Much electronics activity remains assembly, with high-value components still imported, so value addition per unit stays modest. India's pharmaceutical position illustrates the same pattern: third in the world by volume but eleventh by value on 2024-25 data.

The challenges that remain are therefore about depth rather than headline growth. Logistics costs, state-level clearance delays and shallow component ecosystems are the binding constraints. Extending incentives to components, deepening skilling, and using the National Single Window System to cut approval time across all 34 states and union territories would help convert scale into durable competitiveness.

⚠️ Examiner Trap

Trap 1: Students confuse the electronics production figure with the mobile phone production figure. The correct fact is that electronics production reached Rs 13.11 lakh crore in FY 2025-26, while mobile phone production reached Rs 6.27 lakh crore.
Trap 2: A common wrong assumption is that Make in India is run by the Ministry of Finance. The reality is that the nodal department is the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry.
Trap 3: Many students miss that India's pharmaceutical rank differs by measure. Always remember it is third globally by volume but eleventh by value, on 2024-25 data.

Make in India Completes 12 Years: FDI, PLI and Electronics Figures

What Happened

When & Where

Who Is Involved

Department for Promotion of Industry and Internal Trade (DPIIT) — the nodal department that runs the initiative.
Ministry of Commerce and Industry — the parent ministry, headed by Piyush Goyal.
Ministry of Defence — responsible for the indigenous defence production figures.
Ministry of Electronics and Information Technology — drives the electronics and mobile manufacturing PLI schemes.
State governments — provide land, power and single-window clearances that decide where the investment lands.

How It Works

The initiative opens sectors to higher foreign direct investment, much of it through the automatic route, so that investors do not need prior government approval.
It offers production-linked incentives, meaning a manufacturer is paid a percentage of incremental sales only after producing and selling, not merely for announcing a plant.
It reduces regulatory friction through single-window clearance systems, so an investor deals with one interface instead of many departments.
It uses tariff and phased manufacturing programmes to pull component making into India, so that assembly gradually deepens into full manufacturing.
It links public procurement rules to domestic value addition, which creates guaranteed demand for Indian-made goods, especially in defence.
It tracks outcomes through investment, production, export and employment data, so that incentive payouts are tied to verified performance.

Why It Matters

Economic angle: manufacturing raises the share of tradable goods in output, which improves export capacity and cushions the current account.
Employment angle: the PLI schemes alone are credited with 14.6 lakh direct and indirect jobs as of 31 March 2026, which matters for a young workforce.
Strategic angle: indigenous defence production rising to Rs 1.78 lakh crore in FY 2025-26 reduces dependence on imported equipment.
Policy angle: the anniversary data set is the government's own scorecard, and it is the base against which later targets and criticisms are measured.

Historical Background

Previous Related Events

In 2024 the initiative completed ten years, and the government published a decadal review of investment, production and export outcomes.
In 2025 the eleventh anniversary was marked with data showing continued growth in electronics and mobile phone exports.
In June 2026 the government reported that India had attracted about USD 843 billion in FDI between FY 2014-15 and FY 2025-26, and that more than 90 percent of equity inflows came through the automatic route.

Static GK Connection

Foreign Direct Investment routes: India allows FDI through the automatic route, where no prior approval is needed, and the government route, where approval is required. Most sectors are now on the automatic route.
Production Linked Incentive: an output-based subsidy paid on incremental sales of goods manufactured in India, designed to reward actual production rather than announced capacity.
Phased Manufacturing Programme: a tariff structure that raises duties on imported components in steps, pushing firms to localise parts over time.
National Single Window System: a single online platform connecting 32 central ministries and 34 states and union territories for investor approvals.

India & World Comparison

Future Impact

The FY 2026-27 FDI number will be the first test of whether the record inflow of FY 2025-26 can be sustained.
PLI disbursement in later years will reveal how much of the Rs 2.40 lakh crore in committed investment converts into sustained output.
Deeper component manufacturing in electronics is the next stated target, moving beyond final assembly.
Defence exports and indigenous production are expected to grow further from the Rs 1.78 lakh crore recorded in FY 2025-26.

🔑 Key Points for Revision

Make in India was launched on 25 September 2014 and completed 12 years on 25 September 2026.
The initiative covers 27 sectors: 15 manufacturing and 12 services.
Nodal department is the Department for Promotion of Industry and Internal Trade.
Parent ministry is the Ministry of Commerce and Industry, headed by Piyush Goyal.
Highest annual FDI inflow was USD 94.53 billion in FY 2025-26.
Cumulative FDI from FY 2014-15 to FY 2025-26 was USD 843 billion.
That cumulative figure is 169 percent higher than the previous twelve years.
Electronics production grew from Rs 1.9 lakh crore to Rs 13.11 lakh crore.
Mobile phone production grew from Rs 18,000 crore to Rs 6.27 lakh crore.
India is the second-largest mobile phone manufacturer in the world by volume.
PLI investment reached Rs 2.40 lakh crore as of 31 March 2026.
PLI production and sales reached Rs 23.8 lakh crore; exports Rs 15.2 lakh crore.
PLI schemes created 14.6 lakh direct and indirect jobs.
Indigenous defence production rose from Rs 46,429 crore in 2014-15 to Rs 1.78 lakh crore in FY 2025-26.
India ranks third globally by volume and eleventh by value in pharmaceuticals, on 2024-25 data.

🧠 Concept Link (Static GK Deep Dive)

Core Concept: Production Linked Incentive as an Industrial Policy Tool

Definition: a PLI scheme pays a manufacturer an incentive calculated as a share of incremental sales of goods produced in India over a base year.
Constitutional / Legal Basis: PLI schemes are executive schemes approved by the Union Cabinet and funded through budgetary allocation; they are not created by a dedicated statute.
Scientific / Economic Principle: the tool works on the infant-industry and scale-economy logic, that temporary support lets domestic producers reach the volumes at which they become cost-competitive.
Link to this event: the twelfth-anniversary data show PLI investment of Rs 2.40 lakh crore and production of Rs 23.8 lakh crore as of 31 March 2026.
Origin & History: the framework grew out of the Make in India initiative launched in 2014 and was scaled up under the Atmanirbhar Bharat Abhiyan announced in 2020.
Key milestone 1: Make in India 2.0 reframed the programme around 27 sectors, 15 in manufacturing and 12 in services.
Key milestone 2: the initiative completed ten years in 2024, when the first full decadal review was published.
Related Acts / Schemes / Treaties: Atmanirbhar Bharat Abhiyan; the Phased Manufacturing Programme; the National Single Window System.
Nodal Ministry / Body: the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry; individual PLI schemes are run by their own line ministries.
India-specific relevance: manufacturing employs a smaller share of India's workforce than services, so output-linked incentives target that structural gap.
Global comparison: East Asian economies used similar export-linked incentives during their industrialisation, though usually with tighter export conditions attached.
Data point: PLI schemes accounted for exports of Rs 15.2 lakh crore as of 31 March 2026.
Common exam angle: examiners ask for the launch date of Make in India, the number of sectors, the nodal department, and the difference between automatic and government FDI routes.
Easy memory hook: "2014 launch, 27 sectors, 15 goods plus 12 services."

❓ Practice MCQs

Q1. On which date was the Make in India initiative launched? [Easy]

A) 15 August 2014

B) 25 September 2014

C) 2 October 2014

D) 1 January 2015

Answer: B

Explanation: The initiative was launched on 25 September 2014 and completed 12 years on 25 September 2026.

Q2. How many sectors does the Make in India initiative cover? [Easy]

A) 21 sectors

B) 24 sectors

C) 27 sectors

D) 31 sectors

Answer: C

Explanation: It covers 27 sectors, comprising 15 manufacturing sectors and 12 services sectors.

Q3. What was India's FDI inflow in FY 2025-26, as reported at the twelfth anniversary of Make in India? [Moderate]

A) USD 71.28 billion

B) USD 81.04 billion

C) USD 94.53 billion

D) USD 118.60 billion

Answer: C

Explanation: USD 94.53 billion was reported as India's highest ever annual FDI inflow.

Q4. Which department is the nodal agency for the Make in India initiative? [Moderate]

A) Department for Promotion of Industry and Internal Trade

B) Department of Economic Affairs

C) Department of Commerce

D) Department of Expenditure

Answer: A

Explanation: DPIIT, under the Ministry of Commerce and Industry, is the nodal department for the initiative.

Q5. Electronics production in India grew from Rs 1.9 lakh crore in FY 2014-15 to which figure in FY 2025-26? [Moderate]

A) Rs 6.27 lakh crore

B) Rs 9.40 lakh crore

C) Rs 13.11 lakh crore

D) Rs 23.8 lakh crore

Answer: C

Explanation: Electronics production reached Rs 13.11 lakh crore in FY 2025-26; Rs 6.27 lakh crore was the mobile phone figure.

Q6. Which statement about Production Linked Incentive schemes is correct? [Tricky]

A) The incentive is paid when a company announces a new plant

B) The incentive is paid as a share of incremental sales of goods manufactured in India

C) The incentive is a tax exemption granted at the time of import of machinery

D) The incentive is a one-time capital grant fixed by the state government

Answer: B

Explanation: PLI is an output-based incentive tied to incremental sales, which is why production and sales figures are the key metric.

Q7. As of 31 March 2026, what was the actual investment attracted under PLI schemes? [Tricky]

A) Rs 1.78 lakh crore

B) Rs 2.40 lakh crore

C) Rs 15.2 lakh crore

D) Rs 23.8 lakh crore

Answer: B

Explanation: Rs 2.40 lakh crore was the investment figure; Rs 23.8 lakh crore was production and sales and Rs 15.2 lakh crore was exports.

Q8. India's rank in the global pharmaceutical industry, on 2024-25 data, is: [Tricky]

A) First by volume and third by value

B) Third by volume and eleventh by value

C) Eleventh by volume and third by value

D) Second by volume and fifth by value

Answer: B

Explanation: India ranks third by volume and eleventh by value, a gap that reflects its strength in generic medicines.

📜 Previous Year Question Style (PYQ)

PYQ 1:

Under India's foreign direct investment policy, the "automatic route" means that:

A) Investment needs prior approval of the Union Cabinet

B) Investment needs no prior approval of the Government or the Reserve Bank of India

C) Investment is permitted only in public sector undertakings

D) Investment is routed compulsorily through a state government agency

Answer: B

Explanation: Under the automatic route no prior government approval is needed, and more than 90 percent of India's equity inflows use this route.

PYQ 2:

Consider the following statements about the Make in India initiative:

It was launched on 25 September 2014.
It currently covers 27 sectors, of which 15 are manufacturing sectors.
Its nodal department is the Department of Economic Affairs in the Ministry of Finance.

Which of the above statements is/are correct?

A) 1 only

B) 1 and 2 only

C) 2 and 3 only

D) All of the above

Answer: B

Explanation: Statements 1 and 2 are correct. Statement 3 is wrong because the nodal department is DPIIT under the Ministry of Commerce and Industry.

PYQ 3:

Match the following figures reported at the twelfth anniversary of Make in India:

Cumulative FDI, FY 2014-15 to FY 2025-26 — (i) Rs 13.11 lakh crore
Electronics production, FY 2025-26 — (ii) Rs 1.78 lakh crore
Indigenous defence production, FY 2025-26 — (iii) USD 843 billion

A) 1-(i), 2-(ii), 3-(iii)

B) 1-(ii), 2-(iii), 3-(i)

C) 1-(iii), 2-(i), 3-(ii)

D) 1-(iii), 2-(ii), 3-(i)

Answer: C

Explanation: Cumulative FDI was USD 843 billion, electronics production was Rs 13.11 lakh crore and defence production was Rs 1.78 lakh crore.

✍️ Mains Answer Pointers

Question 1 (150 words): Assess the performance of the Production Linked Incentive schemes in achieving the objectives of Make in India.

Question 2 (250 words): Twelve years after its launch, examine whether Make in India has changed the structure of the Indian economy, and identify the challenges that remain.

⚠️ Examiner Trap

Trap 1: Students confuse the electronics production figure with the mobile phone production figure. The correct fact is that electronics production reached Rs 13.11 lakh crore in FY 2025-26, while mobile phone production reached Rs 6.27 lakh crore.
Trap 2: A common wrong assumption is that Make in India is run by the Ministry of Finance. The reality is that the nodal department is the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry.
Trap 3: Many students miss that India's pharmaceutical rank differs by measure. Always remember it is third globally by volume but eleventh by value, on 2024-25 data.