India's manufacturing strategy is undergoing a notable recalibration as the Make in India programme completes 12 years, with the Confederation of Indian Industry arguing that the next phase must be defined less by headline capacity expansion and more by deeper industrial capability.
The shift, according to CII, reflects a broader recognition that scale alone will not be enough to secure durable gains in competitiveness. Instead, the emphasis is moving toward building domestic supply chains, strengthening technology absorption, and embedding Indian industry more firmly into global production networks. For sectors such as automotive, electric vehicles and mobility, the implications are significant: the country must now prove it can manufacture not just more, but better, faster and with greater local value addition.
From Capacity To Capability
For much of the past decade, Make in India has been associated with policy support for manufacturing expansion, investment attraction and the localisation of production. That phase helped create momentum across several industries, including automobiles, components and electronics. But CII's assessment suggests the next challenge is structural rather than promotional. India must now deepen the industrial ecosystem that sits behind final assembly lines.
That means more than simply encouraging factories to open. It requires a stronger base of component makers, materials suppliers, tooling firms, design capabilities and engineering talent. In the automotive sector, this is especially important because competitiveness is increasingly determined by the sophistication of the supply chain, the speed of innovation and the ability to meet global quality standards.
The argument is also timely. Global manufacturers are reassessing sourcing strategies amid geopolitical uncertainty, supply chain fragmentation and the push to diversify away from concentrated production hubs. India has an opportunity to capture more of that shift, but only if its manufacturing base can offer reliability, scale and cost efficiency alongside technical depth.
EVs Raise The Bar
The electric vehicle transition makes the challenge more urgent. EVs are not simply a new product category; they are a test of whether India can build a modern industrial stack around batteries, power electronics, semiconductors, software, charging infrastructure and advanced materials. In that environment, a narrow focus on vehicle assembly would leave much of the value chain offshore.
CII's framing suggests that India's manufacturing ambition must now extend to the upstream layers that determine long-term competitiveness. Domestic supply chains can reduce import dependence, improve resilience and create more strategic control over critical inputs. They can also help Indian firms move up the value ladder, from contract manufacturing to design-led and technology-intensive production.
For automakers and suppliers, this transition will likely require sustained capital expenditure, closer collaboration with research institutions and a policy environment that rewards localisation without sacrificing export readiness. The challenge is not only to serve the domestic market, but to build products and processes that can compete internationally.
Global Markets Matter More
The global competitiveness dimension is central to CII's message. India's manufacturing sector cannot rely indefinitely on protected demand or domestic substitution. To become a serious industrial power, it must be able to export at scale, meet exacting standards and integrate into international value chains where quality, delivery and compliance are non-negotiable.
That is particularly relevant for the automotive and mobility sector, where India has already built a strong base in small cars, two-wheelers and components. The next frontier is to convert that base into a platform for advanced mobility, including EVs, connected systems and potentially higher-end engineering exports. Success would mean not just more output, but a more diversified and resilient industrial profile.
The broader policy message is clear: Make in India is entering a second act. The first was about proving that India could attract and expand manufacturing. The second will be about proving that it can build the industrial depth, technological capability and export competitiveness needed to sustain that growth over the long term. For the automotive sector, and especially for EVs, that test is already under way.