MANUFACTURING & INDUSTRIES IN INDIA
Since the launch of ‘Make in India’ program, India has become one of the highest growing Manufacturing sectors in the world. By virtue of the global recognition of India’s manufacturing sector, the Government of India aims to create 100 million new jobs in the sector by 2022.
India is one of the largest market with billions of consumers with increasing purchasing power which has attracted global giants like GE, Siemens, HTC, Toshiba, and Boeing which have already starting setting up manufacturing plants in India.
India has been ranked amongst the top 10 recipients of Foreign Direct Investment (FDI) in South Asia in 2019 by the United Nations Conference on Trade and Development (UNCTAD). In the last 2 decades, India’s manufacturing sector has reached US$ 89.40 billion cumulative FDI. Furthermore, in May 2020, the Government of India increased FDI in defence manufacturing under the automatic route by 25%. By this it can be clearly construed that India has become one of the most attractive destinations for investment in the manufacturing sector.
To obtain such positive growth, the Government of India took up several initiatives to promote a healthy environment for the growth of manufacturing sector in the country.
Following are some of the major initiative taken by the Government of India:
- The Ministry of Skill Development and Entrepreneurship took the initiative to train 3 Lakh migrant workers from Uttar Pradesh, Bihar, Rajasthan, Odisha, Madhya Pradesh and Jharkhand.
- The government approved the Production Incentive Scheme (PLI) for Large-scale Electronics Manufacturing that aims to boost domestic manufacturing of mobile phone manufacturing.
- 100% FDI has been approved by the Government for contract manufacturing through the automatic route.
- Financial assistance has been approved to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme for the development of top-notch infrastructure including common facilities and amenities by Electronic Manufacturing Clusters (EMCs).
- Industrial Training Institutes in India has increased to 15,000 by August 2020.
- The Government has sought to create an electronics manufacturing industry worth US$ 400 Billion in the country by 2025. To achieve the same, the Government has passed the National Policy on Electronics so as to increase the growth by 32% in the next 5 years.
To promote manufacturing in India, the Government has also been introducing several Incentive Schemes like Production Linked Incentive Scheme, with the aim to create an environment feasible for manufacturing of various products within the Indian territory.
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