Manufacturing & Supply Chain is an economic concept that combines the process of large-scale product creation with the strategic coordination of the entire flow of goods and information. Manufacturing is the production stage, while Supply Chain Management (SCM) is the mechanism that links sourcing, production, inventory, and logistics from raw materials to the final consumer.
The modern framework in India began with the watershed economic reforms of 1991, which initiated liberalization and aimed to integrate India into the global economy by dismantling trade barriers and attracting foreign investment. This was followed by the National Manufacturing Policy (NMP), approved in 2011, which set a goal to increase the manufacturing sector's share of GDP to 25% by 2022 (later revised to 2025).
The current mechanism is driven by the Make in India initiative, launched on September 25, 2014, which encourages domestic and foreign companies to manufacture within the country. A key provision is the Production Linked Incentive (PLI) scheme, introduced from March 2020, which offers financial incentives on incremental sales from domestically manufactured products across 14 sectors.
This concept connects directly to the Aatmanirbhar Bharat framework and is supported by major infrastructure and tax reforms. The implementation of the Goods and Services Tax (GST) simplified tax laws and streamlined bureaucratic processes, significantly improving the ease of doing business and inter-state logistics. Furthermore, the PM GatiShakti National Master Plan, launched on October 13, 2021, focuses on providing multimodal connectivity infrastructure to economic zones, which is crucial for enhancing supply chain efficiency. The most recent change is the increased focus on building resilient supply chains, partly driven by geopolitical factors, positioning India as a reliable alternative for global manufacturers.