S Radha Krishnan
THERE is an insistent buzz around making India a global manufacturing hub in the next 25 years. The goal is achievable if the manufacturing sector pulls up its socks and pays heed to Prime Minister Narendra Modi’s clarion call to improve the quality of Indian products and services to meet international standards.
In his Independence Day speech tis year, the Prime Minister called for a concentrated effort to “design in India, design for the world,” underscoring the importance of bringing Indian standards in line with global benchmarks.
He expressed confidence that this alignment would streamline the global approval process for Indian products, bringing India closer to its goal of becoming a global manufacturing hub.
The Prime Minister also highlighted the Government’s successful implementation of the Production-Linked Incentive (PLI) Scheme, a major initiative worth $ 23.67 billion (Rs 1.97 trillion). The scheme is designed to transform India into a manufacturing powerhouse, reduce its dependency on imports, and generate employment opportunities.
PM Modi’s comments align with the Bharatiya Janata Party’s vision of transforming India into a global manufacturing hub, with a focus on sectors such as electronics, defence, mobile technology, and automobiles.
The PM mentioned that major global companies are eager to invest in India, presenting a significant opportunity for economic growth. He urged the state governments to actively attract these investors to further enhance the country’s manufacturing capabilities.
India’s ascent as a premier hub for global firms is fueled by several key factors. Its expansive developing economy, coupled with strategic logistics and maritime capabilities, alongside a substantial consumer base, form the bedrock of its appeal. Investments in both physical and digital infrastructure, complemented by landmark tax reforms, have nurtured a conducive business environment. The Government’s pro-business policies further amplify India’s attractiveness.
Youthful workforce
Moreover, abundant natural resources and a youthful workforce provide fertile ground for sustainable growth and innovation. Emphasising high rates of technology adoption and a commitment to sustainability, India’s readiness for modern manufacturing solidifies its status as a sought-after destination for global firms looking to expand operations.
In fact, policymakers in India want it to become the new-age factory of the world and aim to raise manufacturing to 25 per cent of the GDP by 2025. There is a sense of urgency as well – with such a large workforce and a median age of around 28, India needs to create jobs at a faster pace, which cannot be met by the services sector alone.
