Govt to identify sectors to make India global manufacturing hub

The exercise, spearheaded by Niti Aayog, will pinpoint these sectors, evaluate their export potential, and formulate strategic recommendations

October 31, 2023

To nurture these sectors into global manufacturing champions, the government will adopt policies and provide essential infrastructure support

Industries such as cement, steel, and select consumer-related sectors not covered by production-linked incentive (PLI) schemes are under consideration for policy intervention

This initiative aims to assess India's industrial capabilities while addressing the challenges that hinder the country's transformation into a global manufacturing hub

The government will reevaluate the existing policy framework and trade agreements and simplify the regulatory environment, making adjustments to the tax structure as needed

Indian officials have announced an impending initiative to identify and promote approximately a dozen sectors with the potential to establish India as a global manufacturing hub. The exercise, spearheaded by Niti Aayog, will pinpoint these sectors, evaluate their export potential, and formulate strategic recommendations.

To nurture these sectors into global manufacturing champions, the government will adopt policies and provide essential infrastructure support. The primary objective is to offer these sectors guidance and outcome-driven assistance to ramp up production and meet international demands. Niti Aayog will commission a comprehensive study to advance this endeavour.

Although a finalised list will take shape in the coming four months, industries such as cement, steel, and select consumer-related sectors not covered by production-linked incentive (PLI) schemes are under consideration for policy intervention.

This initiative aims to assess India’s industrial capabilities while addressing the challenges that hinder the country’s transformation into a global manufacturing hub. Once these sectors are identified, the government will provide the necessary infrastructure, including seamless transportation, power supply, and digital connectivity.

Furthermore, the government will reevaluate the existing policy framework and trade agreements and simplify the regulatory environment, adjusting the tax structure as needed. These efforts aim to boost manufacturing in these sectors and enhance the ease of business in India.

The government seeks to harness India’s demographic dividend, skilled workforce, and robust economic growth to position the country as a preferred investment destination for manufacturing. In 2014, the Make in India initiative was launched to encourage investment, stimulate innovation, develop top-notch infrastructure, and establish India as a hub for manufacturing, design, and innovation. Make in India 2.0 presently centres on 27 sectors through various ministries and departments.

Additionally, the government introduced PLI schemes for 14 key sectors, with an incentive allocation of INR 1.97 trillion to bolster India’s manufacturing capabilities and exports. Other key initiatives include the Industrial Corridor Development Programme, the Ease of Doing Business initiative, the National Single Window System, and the PM GatiShakti National Master Plan, all aimed at providing direct and indirect support to manufacturing.

Source: Economic Times

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