A chance visit by Indian investor and financial expert Shankar Sharma to a workshop in a Mumbai slum has exposed a hard truth behind India’s ‘Make in India’ dream given the best-looking products often come with a “Made in China” tag.
Sharma had approached the workshop to commission a custom leg workout machine. The vendor showed him a catalogue of high-end equipment and promised delivery.
But when asked if the machines could be made locally, the man replied: “Sir, I import from China and assemble it here. Their quality, finish, look, is simply unmatchable.”
The episode, shared by Sharma on X, resonated with many who see the encounter as emblematic of the country’s struggle to break free from its reliance on Chinese manufacturing.
The concern comes at a time when the Indian government is winding down its flagship Rs 1.97 lakh crore Production-Linked Incentive (PLI) scheme, which was launched in 2020, to boost domestic manufacturing and cut import dependence, particularly on China.
Officials have confirmed that the scheme will not be expanded beyond the original 14 sectors, and that deadlines for meeting production targets will not be extended.
New policy alternatives are now being considered, including models that reimburse factory setup costs to reduce upfront risks for investors.
The scheme, once hailed as a cornerstone of Prime Minister Narendra Modi’s “Make in India” push, aimed to raise manufacturing’s share of GDP to 25 per cent by 2025 and position India as a global factory. Over 750 firms signed up, including Apple supplier Foxconn, Reliance Industries, and Tata Electronics.
But government data reviewed by Reuters suggests mixed results.
As of October 2024, companies had produced goods worth $151.9 billion under the PLI scheme as just 37 per cent of the original target. Only 8 per cent of the allocated incentives had been disbursed.
While there has been success in mobile phone manufacturing, which surged to $49 billion in 2023–24, other sectors have failed to meet expectations.
An internal government review in December 2024 noted that eight of the 12 firms approved under the solar PLI scheme, including those linked to Reliance, Adani, and JSW, are unlikely to meet their goals.
Sharma’s anecdote has offered a snapshot of the challenges India still faces in Make in India. Despite high-level policies and headline investment numbers, entrepreneurs on the ground are still importing parts and products from China, not making them in India.