The Impact of Make in India Initiative on the Food and Beverage Industry: Evidence from Time-series Analysis

Abstract

This study assesses the impact of the Make in India initiative on the performance of India’s Food and Beverage Industry (FBI) using annual time-series data from 2000–01 to 2023–24. To capture both level changes and growth dynamics across the pre- and post-policy periods, this study combines level comparison, compound annual growth rate (CAGR) analysis, and econometric regression techniques to assess changes in output, investment, employment, productivity, and profitability across pre- and post-policy periods. Unit root tests are performed to assess the time-series properties of the variables, and regression analysis is subsequently conducted using stationary series to ensure econometric robustness. The level analysis shows marked improvement in all key indicators after the policy intervention, with significant increases in output, capital stock, labour productivity, and profits, alongside moderate employment growth, indicating rising efficiency and capital intensity. The CAGR analysis reveals mixed growth dynamics: while the growth of factory creation and productivity moderated, investment and employment growth accelerated in the post-policy period. Regression results based on first-differenced data confirm a positive and statistically significant association between the ‘Make in India’ initiative and key industry performance indicators. Overall, the findings suggest that Make in India played a significant role in strengthening the FBI through investment-led and efficiency-enhancing growth.