New Phase of Industrial Ambition
India's manufacturing policy narrative is entering a more mature stage, with industry body CII arguing that the country is no longer focused merely on adding factories or expanding output, but on building the underlying capabilities that determine long-term competitiveness. As Make in India completes 12 years, the emphasis is shifting toward domestic supply chains, technology depth, and tighter integration with global markets, according to the industry chamber.
The change in tone is significant. In its early years, Make in India was largely associated with attracting investment, improving the ease of doing business and encouraging companies to manufacture locally. That objective remains relevant, but CII's assessment suggests the next challenge is more structural: whether India can move from assembling products to developing the components, systems and know-how that anchor resilient industrial ecosystems.
For the automotive, EV and mobility sectors, this shift is especially important. These industries are among the most complex in manufacturing, relying on a broad network of suppliers, advanced materials, electronics, software and precision engineering. As electric vehicles and connected mobility platforms gain ground, the competitive advantage is increasingly determined not only by scale, but by innovation, localisation and the ability to meet international quality standards.
Supply Chains Over Assembly
CII's framing reflects a wider policy and business reality. India has made progress in drawing manufacturing investment and expanding production in several sectors, but the country still depends heavily on imported inputs in many advanced categories. That dependence can limit margins, expose firms to external shocks and weaken the domestic value captured from industrial growth.
A deeper manufacturing base would mean more than final assembly. It would require stronger local production of critical components, better supplier development, greater investment in research and development, and closer collaboration between industry, academia and government. In the EV space, that includes batteries, power electronics, semiconductors, charging infrastructure and software-defined vehicle systems. In traditional automotive manufacturing, it includes advanced drivetrains, safety systems and precision parts.
The chamber's message also points to a broader strategic shift in India's industrial policy: competitiveness is now being measured against global benchmarks, not just domestic demand. That means manufacturers must be able to deliver at scale, maintain quality, reduce costs and comply with increasingly demanding environmental and technical standards in export markets.
For policymakers, the implication is clear. Incentives and infrastructure remain important, but they are no longer sufficient on their own. The next phase of Make in India will likely depend on whether the ecosystem can support innovation-led manufacturing, faster technology adoption and stronger integration into international supply networks.
Global Markets Set The Test
The global context makes this transition more urgent. Supply chains have been under pressure in recent years from geopolitical tensions, shipping disruptions, commodity volatility and the strategic rethinking of sourcing patterns by multinational companies. India has an opportunity to position itself as a more reliable manufacturing base, but that opportunity will be captured only if domestic industry can deliver consistency, scale and technological sophistication.
CII's comments also underscore the growing importance of export competitiveness. A manufacturing sector that serves only the domestic market may grow, but one that is integrated with global markets can achieve higher productivity, better technology transfer and more durable investment. For India, that means the success of Make in India will increasingly be judged by how well it helps companies move up the value chain and compete internationally.
In automotive and mobility, this is already visible in the push toward electric vehicles, localisation of components and the development of new supplier networks. Yet the transition remains uneven. Building a competitive EV ecosystem requires not just vehicle assembly, but a domestic industrial base capable of supporting batteries, electronics, software and materials at commercial scale.
CII's assessment suggests that the 12-year milestone for Make in India is less a moment of celebration than a checkpoint. The programme has helped establish manufacturing as a central economic priority, but the next test is whether India can convert that policy momentum into deeper industrial capability. If it does, the country could strengthen its position in global manufacturing. If it does not, growth may remain broad but shallow, with limited resilience against external competition and supply-chain stress.
For now, the message from industry is that the manufacturing conversation has changed. The focus is no longer simply on making more in India. It is on making better, sourcing more locally, innovating more aggressively and competing more credibly on the world stage.