India's Manufacturing Growth and the Role of PLI
India’s manufacturing sector is growing, driven by the Production Linked Incentive (PLI) scheme
PLI has positively impacted sectors like mobile manufacturing, electronics, pharmaceuticals, automobiles, and textiles.
The 2022-23 Annual Survey of Industries (ASI) shows robust growth in manufacturing output (21.5%) and Gross Value Added (GVA) (7.3%), linked to PLI incentives and sectoral performance.
Key Challenges and Opportunities for Expansion
While the PLI scheme has been successful, there’s potential to expand its scope to labour-intensive sectors like apparel, footwear, and furniture, as well as emerging industries like aerospace and space technology.
Reducing input costs, especially for imported raw materials, through streamlined import regimes and promoting green manufacturing can enhance India’s competitiveness.
Regional Imbalance and the Need for State-Level Reforms
Manufacturing activity is concentrated in a few states (Maharashtra, Gujarat, Tamil Nadu, etc.), limiting overall growth and equitable development.
States must implement reforms in land, labour, and power, and improve infrastructure to unlock manufacturing potential across the country.
Inclusive Growth: Focus on MSMEs and Women
Micro, small, and medium enterprises (MSMEs), which contribute significantly to manufacturing GDP, need more tailored support through the PLI scheme to scale up and innovate.
Increasing women’s participation in manufacturing could boost output by 9%, with the development of supportive infrastructure like childcare facilities near factories.
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