India's manufacturing sector is entering a more mature and strategically demanding phase, with industry body the Confederation of Indian Industry arguing that the next stage of Make in India must be defined by deeper domestic capabilities rather than headline capacity additions alone.
As the flagship initiative completes 12 years, CII said the country's industrial base is gradually shifting from a model centred on expanding output to one focused on building resilient supply chains, developing technology-intensive capabilities and embedding Indian manufacturing more firmly into global value chains. The message reflects a broader reassessment within industry: scale matters, but scale without depth leaves manufacturers exposed to import dependence, cost volatility and weak competitiveness in export markets.
Supply Chains First
For the automotive, EV and mobility sectors, this transition is particularly important. These industries sit at the intersection of manufacturing, electronics, energy systems and software, making them highly sensitive to the availability of local components, advanced materials and specialised engineering inputs. CII's framing suggests that India's manufacturing ambition is no longer just about attracting final assembly lines, but about ensuring that the ecosystem behind those lines is increasingly domestic and technologically capable.
That distinction matters because the automotive sector has traditionally been one of India's strongest industrial anchors, while the electric vehicle transition is creating new opportunities and new dependencies at the same time. EVs require batteries, power electronics, semiconductors, motors, charging infrastructure and software integration, much of which has historically been imported or assembled from imported sub-systems. A deeper manufacturing base would allow India to capture more value at each stage of production and reduce exposure to external supply shocks.
The CII assessment also comes at a time when global manufacturers are rethinking sourcing strategies amid geopolitical uncertainty, trade fragmentation and the push for supply chain diversification. India has been positioning itself as an alternative manufacturing destination, but the competition is no longer simply about labour cost or market size. Global buyers increasingly want reliability, quality consistency, engineering depth and the ability to scale production with local supplier ecosystems.
Competitiveness Beyond Scale
CII's emphasis on global competitiveness signals that India's industrial policy conversation is moving beyond the early wins of Make in India. The first phase of the initiative helped improve visibility for manufacturing, attract investment interest and encourage domestic production in several sectors. The next phase, however, will be judged by whether India can move up the value chain, build export-ready capabilities and develop the kind of industrial sophistication that can withstand pressure from established manufacturing hubs in East Asia and elsewhere.
In the mobility sector, this means more than producing vehicles in India. It means designing, engineering and sourcing more of the vehicle within India, while also building the technical standards and supplier quality needed to serve both domestic and international markets. For EVs in particular, the ability to localise critical inputs could determine whether India becomes a serious manufacturing base or remains dependent on imported technology layers.
The broader policy implication is clear: manufacturing depth is now a strategic requirement, not just an industrial aspiration. Domestic supply chains improve resilience, but they also create jobs, support small and medium suppliers, and raise the productivity of the wider industrial economy. Technology development, meanwhile, is essential if Indian firms are to compete in sectors where product cycles are shortening and innovation is becoming the main source of margin.
CII's intervention underscores that Make in India is no longer being measured only by factory announcements or production volumes. The more important test is whether India can convert industrial scale into industrial capability. In the automotive and EV ecosystem, that will depend on how quickly the country can localise advanced components, strengthen supplier networks and align manufacturing with global standards.
Twelve years on, the initiative appears to be entering a more exacting phase. The challenge is not simply to make more in India, but to make more of what matters in India — and to do so at a level that can compete globally.