India’s Manufacturing Push Under ‘Make in India 2.0’

Government reviews in December 2026 indicated steady progress under Make in India 2.0, with targeted sectoral interventions yielding results in high-value manufacturing. Electronics manufacturing saw increased domestic value addition, supported by Production Linked Incentive (PLI) schemes. Significant strides were also reported in semiconductor fabrication, including progress on fabs, packaging and testing facilities. Green manufacturing—covering solar modules, electric vehicle components, batteries and green hydrogen equipment—emerged as a key pillar of the strategy.

Key focus areas

• Electronics manufacturing:
  Expansion of mobile phone, consumer electronics and component ecosystems, moving beyond assembly towards design and fabrication.
• Semiconductors:
  Development of domestic fabs, OSAT/ATMP units and semiconductor design capabilities to address strategic and economic vulnerabilities.
• Green manufacturing:
  Promotion of clean-energy supply chains to align industrial growth with climate commitments and energy transition goals.

Challenges

• Skill gaps in advanced manufacturing
• High logistics and power costs
• Technology access and ecosystem depth
• Regulatory and land-acquisition hurdles

Way forward

Sustained reforms in labour laws, logistics, skilling and R&D, along with stable policy support and public–private partnerships, are essential to translate Make in India 2.0 into long-term manufacturing competitiveness.