India’s Manufacturing Push: India aims to increase the manufacturing sector’s share of GDP from 12% to 23% in the next two decades. This is driven by the need to create jobs, reduce import dependence, and build globally competitive supply chains.
Focus on Sunrise Sectors: The government is prioritizing 14 identified sunrise sectors, including semiconductors, renewable energy components, medical devices, and batteries. This also include labour-intensive industries, such as textile and leather.
Importance of Manufacturing: Manufacturing is seen as crucial for long-term economic transformation, providing employment, financial stability, and driving demand for infrastructure and governance reforms.
PLI Scheme: The government introduced the Production-Linked Incentive (PLI) scheme to boost manufacturing in sunrise sectors and those with high employment potential.
Gig Economy vs. Manufacturing: While the service sector and gig economy contribute significantly to India’s GDP and employment, manufacturing is considered essential for balanced economic growth and social cohesion.
Global Manufacturing Reset: India is adapting to the global shift in manufacturing brought about by the Fourth Industrial Revolution.
Stability and Policy Predictability: The Finance Minister emphasized the importance of stable governance, consistent policies, and predictable tax regimes for attracting investments and driving growth.
Sunrise Industry Definition: A sunrise industry is a newly emerging and rapidly growing sector, attracting investors due to its potential for long-term growth and high returns, often driven by technological innovation.
