Mains issueGS-3News & Analysis25 September 2026

Performance and Challenges of India's Manufacturing Sector and Industrial Policy

An aspirant should be able to critically evaluate the 'Make in India' campaign, acknowledging its limited successes (especially through PLI in specific sectors) while highlighting its overall patchy impact on broad economic indicators like growth, employment, and global market share, attributing this to a lack of a comprehensive 'development and growth-oriented environment'.

Source: thehindu.comOriginal report

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Why now

The article provides a 12-year review of the 'Make in India' campaign, offering a critical assessment of its impact on key economic indicators like growth, employment, and exports, making it crucial for understanding India's industrial policy effectiveness.

Core issue

A 12-year review of the 'Make in India' campaign reveals a low and patchy impact on India's manufacturing sector, with its share in economic growth, employment, and global exports remaining largely stagnant. While government incentive schemes like PLI have shown some success, particularly in a few concentrated sectors, broader metrics reflecting a 'development and growth-oriented environment' are underperforming, leading to tepid private investment and capacity utilization below optimal levels.

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