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Govt., Industry Working Towards Making India Globally Competitive

• By  Textile Excellence
• December 09, 2022

Make in India’ was launched on September 25, 2014, to facilitate investment, foster innovation, building best in class infrastructure, and making India a hub for manufacturing, design, and innovation. It was one of the first 'Vocal for Local' initiatives that exposed India's manufacturing domain to the world. The sector has the potential to not only take economic growth to a higher trajectory but also to provide employment to a large pool of our young labour force. According to PM Narendra Modi, “Be it Make in India, or Vocal for Local, all these schemes are creating new opportunities for employment and self-employment in the country. That means the opportunities for government and non-government jobs are increasing constantly.” The Indian government is proving itself to be business friendly, implementing a number of important reforms that include cutting the corporate tax rate from 30% to 25%, establishing a new labour code, increasing FDI (foreign direct investment) limits in a range of sectors and a large increase in magnitude and pace of infrastructure construction to de-bottleneck the flow of people and goods across the country at much faster speeds. The intent of the production-linked incentive (PLI) schemes is to redress some of the imbalance present in India's merchandise trade, particularly with China. In recent years, India's imports have been 50% higher than its exports. The government wants to become more self-sufficient in their goods manufacturing and have therefore built out a comprehensive ‘Make in India' strategy. Growing demand for manufactured goods such as electronics, a growing workforce and India's established know-how in engineering all augur well for domestic strength as well as positioning the country to benefit as a China Plus One supplier. Investment in infrastructure is also part of this global competitiveness drive, to bring down logistics costs and increase supply chain efficiencies. The ongoing build-out of a dedicated freight corridor will see close to 3,000km of rail constructed, connecting the most utilised routes between key cities and cutting journey times in half in a strategy to shift more volume from road to rail, where India currently falls behind other nations. The PLI scheme itself targets specific subsectors, offering incentives - a percentage of revenue - to entice domestic and multinational companies to set up manufacturing bases in India.

The government wants to become more self-sufficient in their goods manufacturing and have therefore built out a comprehensive ‘Make in India' strategy.