For the past decade and a half, revival of the manufacturing sector has been on the agenda of successive governments." Discuss the reasons that have caused the Indian manufacturing struggle to take off.

After both UPA governments failed to grow the manufacturing sector's proportion of GDP from 16-17 percent to 25 percent within a decade, the Modi government launched "Make in India" in 2014, adopting the prior government's aim.

With the manufacturing sector's proportion of GDP remaining stable over the last five years, a fundamental issue for Modi administration 2.0 will be to identify viable strategies to re-energize this sector. Thus, the Union Budget delivered by Nirmala Sitharaman might indicate if the government is committed to reviving the manufacturing sector.
The manufacturing sector is crucial for resolving the sharp increase in unemployment growth in recent years while also guaranteeing that the economy expands at least as fast as the Central Statistics Office claims.

However, India's industrial industry is battling for survival. Not only have critical industries such as textiles and garments lagged behind in global markets, but they are now struggling to compete in the home market due to import competition. Numerous industry have been requesting increased levels of protection for several years, but the government has only just begun to respond.

India's manufacturing requirement is widely acknowledged. Make in India has attempted to revitalize the Indian manufacturing sector. Additionally, the government recognizes the essential role of micro, small, and medium-sized firms (MSMEs) in industrial growth.
Export-oriented manufacturing existed in Japan, east Asia, and China. The Japanese and East Asian models stifled local demand in favor of global markets, most notably the United States. China, on the other hand, took a slightly different path. Chinese manufacturing was a state-sponsored import substitution scheme taken to the next level. China instructed businesses to replicate worldwide items for a fraction of the cost for the home market. They next turned their attention to exports. As soon as China gained traction, she multiplied the size of these firms. Chinese installed capacity exceeds global demand in a number of sectors. This manufacturing method was based on huge corporations and was very straightforward to run.
After 1991, the first chance for manufacturing growth presented itself. Indian corporations, formerly confined by the licensing raj, were keen to grow. Their excitement, however, resulted in overcapacity, which led in a downturn in the late 1990s. Indian corporations should have expanded their share of global demand throughout this time period. They did, to a degree. India performed admirably in outsourcing manufacturing strategies—auto components, pharmaceuticals, and textiles, to name a few.
However, Indian corporations have historically underinvested in innovation. As a result, new goods are not being developed by huge corporations. They only desired to serve as factories for the international players. This indicates that Indian huge corporations have no competitive edge. Even in vehicles, we sourced product design from European design firms.
India's major corporations have been unable to innovate in order to recognize and meet Indian demand. Our multinational corporations were hard at work adapting foreign items to local tastes. Their speed is also moderate in this area. Even now, worldwide cosmetic products are not matched with Indian skin tones, nor are fast moving consumer goods (FMCGs) or consumer durables designed with Indian realities in mind.
Indian major corporations are not developing locally as a result of the domestic protection they have. Prior to 1991, this protection was provided by licenses. Today, it is provided through brand equity and distribution networks. These corporations are willing to focus only on home demand.
Indian manufacturing is mostly focused on the home market. India is a manufacturing centre for tiny automobiles, owing to the fact that it is a consumer of small cars. Likewise, for motorbikes. To develop manufacturing, businesses must initially focus on domestic demand.

Second, because our domestic market is divided, the potential will initially be limited. That is not to say, however, that while meeting that need, Indian manufacturers would never be global players. Once the business concept has been validated, it is possible to target both domestic and foreign demand.