India's Long-Term Goals for the Manufacturing Sector The manufacturing sector finds itself at a crucial juncture in the growth of the economy, employment, and technological advancement while being prudent towards environmental sustainability
By Rahul Garg
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India is right on the verge of a transformative phase amidst its industrial history, with a roadmap in place for 2047. The Vision India@2047 is aimed at making India a global manufacturing hub, while its economy keeps growing at a sustainable pace. Nearing this significant tipping point, the manufacturing sector finds itself at a crucial juncture in the growth of the economy, employment, and technological advancement while being prudent towards environmental sustainability.
$30 TRILLION AMBITION
A goal among India's long-term strategies is achieving the target of becoming a USD 30 trillion economy by 2047. More than 17 per cent of the country's GDP emanating from manufacturing is projected to propel most of this growth. The key to achieve this vision is the Production-Linked Incentive scheme. Through this initiative, foreign investments are sought, exports are aimed to be enhanced and finally, import dependence is planned to be reduced, especially in high-end manufacturing and renewable energy sector.
THE MANUFACTURING LANDSCAPE
An aspect that poses a great challenge is the high prevalence of Small & Medium Enterprises (SMEs) in the sector. While important in job creation and forming the economy base, they do not have access to sufficient resources and technology to be competitive globally. Therefore, government schemes pertaining to training the workforce and implementation of digitalization, would be important for them to succeed.
SUSTAINABILITY AT THE HEART
India has been targeting net zero emissions by the year 2070 and drastically lowering carbon emissions by 2030 by adoption of energy-efficient technology. The Indian government's National Action Plan on Climate Change (NAPCC) has also set out several policy measures to encourage the implementation of green manufacturing practices. The drive of the country to greener sources of solar energy, with a target of 450 gigawatts (GW) in generation by the year 2030, further underlines this devotion.
INFRASTRUCTURE DEVELOPMENT
The National Infrastructure Pipeline and Bharatmala projects aim at enhancing country's intangible infrastructure. By 2047, India intends to have in place a modern world-class supporting infrastructure that links manufacturing centers with ports, airports, and roads. This is highly required not only for the internal economy but also to connect India to the Global Value Chains (GVCs), where efficiency and timeliness matter the most.
TECHNOLOGICAL INNOVATION AND WORKFORCE DEVELOPMENT
The government is enthusiastic about the application of modern technologies for productivity enhancement and sustainability. These technologies, while increasing output efficiency, also help minimize the use of nonrenewable sources.
In alignment with this policy change, India is committed to developing the human potential needed. Throughout the Skill India programme, millions of workers should be prepared for the labour market as advanced manufacturing specialists.
