Under the current regime, India is implementing various strategies to boost local manufacturing, focusing on several key areas to enhance domestic production capabilities and reduce reliance on imports.
Production-Linked Incentive (PLI) Schemes: The government has expanded PLI schemes across various sectors, including electronics, automotive, pharmaceuticals, and textiles. These schemes provide financial incentives to companies that increase their production capacities and achieve specific targets, encouraging investment and innovation in domestic manufacturing.
Customs Duty Adjustments: The 2024 budget introduced reductions in customs duties on essential raw materials and inputs used in manufacturing. For instance, duties on components for spandex yarn and down filling materials for textiles and leather goods have been reduced, lowering production costs and making domestic products more competitive.
Infrastructure Development: The government is investing heavily in infrastructure projects to improve logistics and supply chains. Enhanced connectivity and transportation networks are crucial for efficient manufacturing and distribution of goods, reducing delays and costs associated with moving raw materials and finished products.
Ease of Doing Business: Efforts to streamline regulatory processes, reduce bureaucratic red tape, and enhance the ease of doing business are ongoing. Initiatives such as single-window clearances, digitization of customs procedures, and simplification of tax compliance are aimed at making India a more attractive destination for manufacturing investments.
Focus on MSMEs: Micro, Small, and Medium Enterprises (MSMEs) are being supported through various schemes that provide easier access to credit, subsidies, and technical assistance. By empowering MSMEs, the government aims to create a robust ecosystem for local manufacturing that can cater to both domestic and international markets.
Skill Development: Investments in skill development programs are being made to ensure a workforce that is capable of meeting the demands of advanced manufacturing technologies. Training initiatives and partnerships with educational institutions aim to equip workers with the necessary skills to thrive in a modern manufacturing environment.
These measures are part of a broader strategy to foster self-reliance (Atmanirbhar Bharat), stimulate economic growth, and position India as a global manufacturing hub.
