Make in India 2.0 — Complete Guide for Businesses & Investors

Make in India 1.0 (2014) focused on 25 sectors and broad FDI liberalisation. Make in India 2.0 (2019 onwards) refined the focus to 27 sectors (15 manufacturing + 12 services), introduced PLI schemes with &rupee;1.97 lakh crore budget, set up National Single Window System, and launched targeted programmes like the India Semiconductor Mission and Defence Production corridors.

Absolutely. MSMEs are central to Make in India. Benefits include Udyam registration for procurement preferences (Government e-Marketplace mandates 25% procurement from MSMEs), CGTMSE collateral-free loans up to &rupee;5 crore, technology upgradation fund (CLCSS), and PLI scheme participation in sectors like food processing, textiles, and pharma with lower investment thresholds for MSMEs.

PLI provides cash incentives of 4–12% on incremental sales over a base year for 5–6 years. Companies apply during open windows, commit to minimum investment and production thresholds, and are selected based on criteria. Claims are made annually after audit verification of incremental production/sales. The incentive is disbursed directly into the company's bank account by the respective ministry.

No. While most sectors allow 100% FDI, some have sectoral caps or require government approval. Multi-brand retail is capped at 51% (government route). Insurance is at 74% (automatic). Print media is 26%. Defence is 74% automatic, beyond 74% via government route. Sectors like atomic energy, lottery, gambling, and real estate business (except townships) are prohibited for FDI. Check the latest DIPP Press Note for sector-specific limits.

NSWS (nsws.gov.in) is a unified digital platform where businesses can identify and apply for approvals needed from central and state governments. It covers 550+ approvals across 32+ ministries and 37 states/UTs. Features include a Know Your Approvals (KYA) module, common application forms, integrated payment, and real-time tracking. It eliminates the need to visit multiple departments physically.

Under Section 115BAB, new domestic manufacturing companies incorporated after 1 October 2019 and commencing production before 31 March 2024 can opt for a 15% corporate tax rate (effective 17.16% including surcharge and cess). This is one of the lowest manufacturing tax rates globally. The company must not avail any other exemptions or incentives. Existing companies can use Section 115BAA at 22% (effective 25.17%).

Step 1: Register the company (SPICe+ on MCA portal). Step 2: Apply for land in an industrial corridor/SEZ/industrial park via the state's industrial development corporation. Step 3: Apply for all approvals via NSWS. Step 4: Get Udyam registration if MSME. Step 5: Register for GST, PAN, TAN. Step 6: Apply for PLI (if applicable sector). Step 7: Begin operations with factory licence, pollution consent, fire NOC, and labour registrations. TaxClue can handle end-to-end compliance.

Invest India is the Government's national investment promotion agency. It provides free, confidential guidance to domestic and foreign investors — including sector research, policy clarification, state comparison, land identification, incentive mapping, and post-investment support. Reach them at investindia.gov.in. They have facilitated investments worth over US$36 billion and are ranked the world's #1 investment promotion agency by the UN.