Impact of Make in India Initiative on Foreign Direct Investment Inflows in Manufacturing Sector: An Empirical Study of Pre and Post Make in India Policy Intervention

“Make in India” Initiative pioneered in September 2014; this initiative was born out of a vision to rejuvenate India’s manufacturing sector into a global manufacturing hub. This study examines how effective the initiative has been by looking at trends in Foreign Direct Investment, in the manufacturing sector, during the pre-Make in India period (2006–2014) and post-period (2015–2023). The study has three objectives: to evaluate the trends in total Foreign Direct Investment inflows and Foreign Direct Investment inflows into the manufacturing sector before and after the introduction of the Make in India initiative. It also analyzed the impact of these Foreign Direct Investment inflows on India’s manufacturing sector and overall Gross Domestic Product growth, a comparative analysis is undertaken to analysis the growth of the top 4 manufacturing sectors before and after the launch of the Make in India initiative. The study considered the various analytical tools and techniques, including percentage analysis, Compound Annual Growth Rate, average growth analysis, trend analysis, and regression models and Paired sample T- Test. Findings were supported by charts and tables to provide a comprehensive understanding. The results show that the growth in Foreign Direct Investment in manufacturing sector is lower than the growth in overall Foreign Direct Investment Sector because of its increased inflow in other sectors like Service Sector. Thus, it shows the fluctuating and lower growth than the growth in Overall Foreign Direct Investment Inflows. But the growth is somehow increased after the launch of Make in India.