The government has said it will take some time to build momentum in favour of manufacturing as the share of manufacturing in GDP remains below the 2013-14 levels even as the its Make in India programme completes 10 years.
The share of value addition by manufacturing sector is 15.9% in 2023-24 compared to 16.7% of GDP (in constant price) in 2013-14. The target of the government is to achieve 25% manufacturing share in GDP by 2030. It will take some time to build momentum, says DPIIT secretary Amardeep Singh Bhatia while addressing the media.
“In many places, the bottlenecks are not just of investment but also of technology. Investment should bring technology, build capacity and skills, and when all these come together the momentum is built,” said Bhatia when asked about the failure of the Make in India to increase the share of manufacturing in GDP. The DPIIT secretary said the focus of the government is to bring in technology along with investments under the Make in India programme. The programme was launched in 2014 to raise share of manufacturing in GDP.
Various reform measures have been taken by the government under the programe. They include Semicon India programme with an outlay of Rs 76,000 crore to give an impetus to semiconductor manufacturing; production-linked scheme for 14 manufacturing sectors; National Single Window Programme to integrate clearances from 32 ministries/departments and 29 states/UTs, facilitating rapid approvals; PM Gati Shakti National Master Plan to facilitate data-based decisions related to integrated planning of multimodal infrastructure, thereby reducing logistics cost; and National Industrial Corridor Development Programme.
On the question of the Indian manufacturing sector losing out to countries like Mexico, Vietnam and Bangladesh due to higher costs, Bhatia said that interaction with industry shows that cost at factory gate is same as these countries, however, India losses out to higher logistics cost. “The PM Gati Shakti scheme is aimed at bringing down the logistics cost,” said the DPIIT Secretary.
Speaking on the PLI schemes introduced in 2020, Bhatia said so far Rs 1.4 lakh crore investments have been made, manufacturing output worth Rs 12 lakh crore achieved and 8.5 lakh jobs have been created, thanks to the PLI scheme. Goods exports of Rs 4 lakh crore have been made by companies availing the scheme.
