QUES . Discuss the latest activities undertaken by the government to encourage the manufacturing sector in India.
HINTS:
Important facts with respect to manufacturing sector in India
Manufacturing exports have registered highest ever annual exports of US$ 447.46 billion with 6.03% growth during FY23 surpassing the previous year (FY22) record exports of US$ 422 billion.
By 2030, Indian middle class is expected to have the second-largest share in global consumption at 17%.
Propelled by growth in priority sectors and driven by favourable megatrends, India’s manufacturing sector has opened itself into new geographies and segments.
Building on the competitive advantage of a skilled workforce and lower cost of labour, the manufacturing sector is also witnessing an increased inflow of capex and heightened M&A activity, leading to a surge in manufacturing output and resultant increased contribution to exports.
The manufacturing sector is a crucial part of the Indian economy, contributing to around 16% of the country’s GDP and employing over 100 million people.
Activities undertaken by the government to encourage manufacturing sector in India
National Manufacturing Policy: The Indian government has implemented a National Manufacturing Policy to promote the growth of the manufacturing sector in the country. The policy aims to increase the sector’s contribution to GDP to 25% by 2025 and create 100 million additional jobs.
Make in India Initiative: The Make in India initiative was launched in 2014 to encourage domestic and foreign companies to manufacture their products in India. The initiative provides incentives such as tax benefits, easier access to financing, and reduced compliance burden to companies setting up manufacturing facilities in the country.
Production Linked Incentive (PLI) Scheme: The government has introduced the PLI scheme to promote domestic manufacturing in specific sectors such as electronics, pharmaceuticals, and textiles. Under the scheme, companies that meet certain production targets are eligible for financial incentives.
Atmanirbhar Bharat Abhiyan: The Atmanirbhar Bharat Abhiyan, launched in 2020, aims to make India self-reliant by promoting domestic manufacturing and reducing dependence on imports. The government has announced various measures such as providing incentives for local production, promoting exports, and encouraging innovation and research and development.
Single Window Clearance: The government has implemented a single-window clearance system to simplify and expedite the process of obtaining licenses, approvals, and permits required for setting up a manufacturing unit.
Overall, the Indian government’s efforts to encourage and support the manufacturing sector have been significant in recent years. These initiatives aim to increase domestic production, create employment opportunities, and promote self-reliance in the country.
