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Make in India 2.0: Manufacturing & Export Opportunities for Foreign Businesses

CCrossVentura Insights
•2025-10-27
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Make in India 2.0: A Global Opportunity Beckons

In 2025, India's merchandise exports hit ₹ 37,34,255 crore (US$ 437.4 billion)—not a tiny leap from FY24, but a powerful signal that India's global trade momentum is steady. Meanwhile, foreign investors are watching: FDI inflows into manufacturing have surged, aided by India's renewed industrial push. For entrepreneurs abroad, the question now is not if India makes sense, but how fast they can make it work. This is the dawn of Make in India 2.0—a more ambitious, incentive-driven, export-oriented phase. In the following, we'll explore why India matters, what incentives await, which sectors shine, how exports unlock value, and how a partner like CrossVentura can help you turn plans into reality.

Why India Now? Rising Potential, Measurable Gains

Over the past decade, India has aggressively repositioned itself in global supply chains. Today, That growth is not theoretical: new factories spring up across states. For instance, Uttar Pradesh alone saw 4,000 new factories in FY 2024-25, bringing its total to over 27,000 operational units. At the national level, India's industrial production, as measured by the Index of Industrial Production (IIP), rose 1.2% year-on-year in May 2025, with the manufacturing sub-index contributing 2.6%.

Yet challenges linger. Manufacturing's share in Gross Value Added (GVA) gently slipped to 14.0% in FY 25 (down from 14.3%), highlighting that India still has to nudge the needle further. This is precisely the opening for Make in India 2.0: a reinvigorated push combining incentives, export focus, and foreign participation. As global companies look for "China+1" alternatives, India's cost structure, demographic dividend (65% of population under 35), and strategic reforms make it a compelling bet.

For foreign entrepreneurs contemplating entry, the immediate leverage lies in capturing export markets from an Indian base, utilising policy support, and riding the structural tailwinds of an evolving economy.

Government Incentives: The PLI Push & Beyond

The heart of Make in India 2.0 lies in Production Linked Incentive (PLI) schemes—financial incentives awarded based on incremental production or sales above a base year. The goal: catalyse value addition locally. As of mid-2025, ₹ 21,534 crore has been disbursed across 12 PLI sectors, attracting ₹ 1.76 lakh crore in committed investments and creating over 12 lakh jobs.

The PLI scheme applies to sectors including electronics, textiles, auto components, specialty steel, white goods (ACs, LEDs), pharmaceuticals, and solar modules.

Recently, the fourth round of the PLI scheme for white goods (air conditioners and LED lights) opened, where foreign and domestic firms can apply between 15 September and 14 October 2025. Incentives range from 4-6% on incremental sales.

A real example: Apple and its contract manufacturing partners—especially Foxconn—have expanded production in India under the PLI scheme, shifting significant portions of output toward exports. In a recent six-month period in FY 25, India exported US$ 10 billion in iPhones (₹ 88,730 crore), with 80% of locally manufactured units destined for global markets.

Beyond PLI, the government also relaxes import duties on capital equipment, expedites approvals, simplifies FDI norms, and creates industrial corridors (e.g. Amrit Bharat, DMIC).

A 2025 scheme for electric vehicles (EVs) further encourages foreign auto investment by providing incentives for green mobility manufacturing.

These incentives help address a primary pain point: high entry cost. For foreign firms worried about upfront capex, the PLI scheme's payback on incremental output mitigates risk, while duty waivers on machinery soften the burden of establishing operations.

Export Opportunities: India as an Export Hub

India's strategic location, improving trade connectivity, and export promotion policies make it an attractive base for foreign businesses aiming to access global markets. In FY25, India's total exports reached a record $824.9 billion, with mobile phone exports surging 95% year-on-year to over $1.8 billion in September 2025 and Apple exporting a record $10 billion worth of iPhones from India in H1 FY26. Government support, including remission schemes like RoDTEP, export incentives under EPCG, Free Trade Agreements (FTAs), and Special Economic Zones (SEZs), further strengthens India's export ecosystem. For foreign businesses, manufacturing in India under these preferential regimes allows exports to Southeast Asia, Africa, and Europe while benefiting from competitive cost structures and efficient logistics channels, particularly in sectors such as electronics, automotive components, and consumer goods.

Sectors with Greatest Promise in 2025

Not all sectors offer equal runway. The most promising ones under Make in India 2.0 include:

  • Electronics & Mobile Manufacturing: The PLI programme started with mobiles and continues to reward foreign players who localize deeper.
  • Automotive & Auto Components / EVs: With India launching new EV schemes in 2025 to lure global auto majors, the time to invest is now.
  • Specialty Steel & Materials: The PLI for specialty steel has already seen ₹ 27,106 crore commitments, with ₹ 18,848 crore invested by December 2024.
  • White Goods / Household Appliances: With the fourth PLI round open for ACs and LEDs, this sector is primed for foreign entrants.
  • Pharmaceuticals, Chemicals, Renewable Energy: These remain pillars of India's manufacturing strategy, especially given global supply chain shifts.

For instance, Ingersoll Rand (a U.S.-based firm) recently inaugurated a ₹170 crore manufacturing facility in Sanand, Gujarat, to serve both domestic and export markets. Their investment underscores how a foreign company can scale operations in India and integrate into global supply chains.

How CrossVentura Helps You Make Your Move

Embarking on a foreign expansion journey is exhilarating—but riddled with complexities. That's where CrossVentura steps in as your trusted partner. Our services include:

  • Entity Setup & Legal Compliance: We help you choose the best jurisdiction (e.g. India subsidiary or branch), register, and comply with company law, GST, and labour regulations.
  • Tax Structuring & Advisory: We guide you on leveraging tax treaties, structuring for optimal profits, and claiming PLI and export incentives.
  • Banking & Payments: From opening corporate bank accounts to handling foreign exchange and payment processing, we simplify operational finance.
  • Logistics & Export Strategy: We map out supply chain networks, warehousing, customs, and export documentation pathways.
  • Ongoing Support: You get continuous compliance management, audit support, and policy updates to stay ahead in India's evolving regulatory landscape.

By integrating CrossVentura's hands-on expertise, you reduce time to market, mitigate regulatory risk, and unlock real leverage from Make in India 2.0.

Partner with CrossVentura—Your Gateway to Make in India 2.0 Success

Make in India 2.0 is not just a slogan—it's India's renewed bet to become a global manufacturing and export leader. With strong policy backing, expanding FDI inflows, incentive regimes like PLI, and sectors ripe for foreign investment, the time is now for global entrepreneurs to establish operations in India.

If you're ready to turn ambition into action, CrossVentura is your partner in every step—from entity setup to export execution. Contact us today to schedule your initial consultation and begin your Make in India journey.