Despite a sleek marketing campaign, the world isn\u2019t quite ready to \u2018Make in India.\u2019 Last week, Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in celebrated the inauguration of what Samsung Electronics Co. Ltd. called the world\u2019s largest mobile phone factory. At the splashy event just outside New Delhi, Modi said the facility was \u201cextremely important\u201d for his Make in India initiative to boost manufacturing to 25 percent of India\u2019s economy by 2020 and create millions of jobs. Samsung said the plant was a \u201cshining example\u201d of the success of the program. But the investment is more the exception than the norm. Data from the World Bank and the Reserve Bank of India show manufacturing hasn\u2019t received a significant boost since Modi took office in 2014. While India\u2019s economy has overtaken France to become the world\u2019s sixth largest, manufacturing has shrunk to about 15 percent of gross domestic product from a peak of 18.6 percent in 1995, according to the World Bank. Other data show new investments in India have dropped and stalled projects are on the rise. \u201cThe Samsung announcement is good news, but it must be seen as a one-off at present,\u201d says Vivek Dehejia, an associate professor of economics at Carleton University in Ottawa. \u201cMake in India is a noble aspiration of the Modi government. Yet, in the absence of a supporting infrastructure and ease of doing business environment, it\u2019s a tough challenge.\u201d The initiative is a worthwhile attempt to lure global businesses, analysts say, but it hasn\u2019t been accompanied by enough meaningful changes to revive manufacturing or alter what is essentially a services-oriented economy. Made in China Spokesmen for the Prime Minister\u2019s Office and the commerce ministry didn\u2019t respond to requests for comment. Unlike Beijing\u2019s Made in China 2025 program - which targets strategic industries from robotics to new-energy vehicles through state investment and subsidies - Modi\u2019s Make in India plan is more of an investment promotion strategy. One of the key reforms under the initiative launched in 2014 was the loosening up of foreign investment restrictions in several sectors, including defense. However, private data shows investment is falling. The Centre for Monitoring Indian Economy show new project investments have dropped to 6.62 trillion rupees ($96.6 billion) in the financial year ended March from 18.7 trillion rupees in fiscal 2015. Over-Capacity The value of stalled projects climbed to 7.63 trillion rupees from 5.29 trillion during that period. Even data from the Reserve Bank of India\u2019s bulletin show that corporate capital expenditure has fallen since Modi came to power. Modi\u2019s Make in India project hasn\u2019t worked, in part because Indian companies invested heavily for years until 2012, well before Modi\u2019s election, and now have excess industrial capacity, said Mahesh Vyas, CMIE\u2019s chief executive officer. \u201cIt now needs to wait for these capacities to be absorbed fully before new capacities are built aggressively again,\u201d Vyas said. He added \u201cthe world has become a lot more protectionist and is more keen to retain employment on its shores than exporting these to other countries.\u201d Those capacities have done little to temper growth in imports of foreign-made goods. Rising purchases of smartphones and TVs have made electronics India\u2019s second-biggest import item after oil, and is pushing the nation\u2019s trade deficit wider. Under Modi, record foreign direct investment has flowed into India and the country\u2019s ease of doing business ranking has improved. Most investment, such as Amazon.com Inc.\u2019s $5 billion commitment to expand operations in India, has gone into the nation\u2019s dominant services and technology industries. FDI remains just 1.2 percent of India\u2019s overall investment, according to Bloomberg Economics analyst Abhishek Gupta. High-profile investments from foreign firms \u201cshould not be confused with an overall improvement in investment activity in India,\u201d he said. With more jobs created in the services sector, Modi\u2019s program should focus on investments there, said Gupta. \u201cJob creation in India could hugely benefit if Make in India\u2019s focus is expanded to include more services, relative to its overemphasis on manufacturing,\u201d Gupta said. \u201cIndia\u2019s tough labor laws and higher bureaucratic entry barriers into manufacturing, along with its widespread fluency in English - a boon in global services - suggests that its comparative advantage lies in services.\u201d Even the Make in India program\u2019s mascot - a lion composed of gears - hasn\u2019t avoided the onerous regulations and occasional political interference that are still common in India and a key obstacle to investment. A large lion statue, built by one of India\u2019s state-owned companies to promote the manufacturing program, reportedly ran afoul of rules when it was placed outside the Department of Industrial Policy and Promotion in New Delhi. And a separate branding exercise involving colorful lion structures in Mumbai led to accusations they violated local heritage regulations.