Answer

The manufacturing sector employs over 27 million people. However, global supply chain disruptions and automation trends necessitate a strategic push for industrial growth. The National Manufacturing Mission, aligned with Make in India 2.0, aims to enhance competitiveness, attract investments, and achieve the target to increase its share from 17% to 25% GDP .

National Manufacturing Mission and Industrial Growth

• Support for MSMEs and Large Enterprises: The Mission provides policy and execution roadmaps to help both MSMEs and large firms scale operations, improving industrial productivity and efficiency.
  For example: Expanding credit guarantee cover to ₹10 crore for MSMEs enables greater investment in manufacturing expansion.
• Sector-Specific Growth Strategies: Targeted initiatives for labour-intensive and high-tech sectors, such as footwear, leather, food processing, and green industries, create sustainable industrial clusters.
  For example: The National Action Plan for Toys focuses on cluster development, skill training, and ecosystem strengthening for domestic and export markets.
• Cleantech and Green Manufacturing: The policy promotes solar PV cells, EV batteries, wind turbines, and electrolysers, ensuring sustainability and self-reliance in clean energy.
• Enhancing Manufacturing Competitiveness: Strengthening supply chains, infrastructure, and production efficiency to withstand global competition and reduce dependence on imports.
  For example: India’s PLI for semiconductors fosters domestic chip manufacturing, reducing external supply chain vulnerabilities.
• Encouraging Technological Innovation: The Mission fosters R&D incentives, automation, and AI adoption to improve global market positioning.
  For example: National Institute of Food Technology supports value addition and modern processing in India’s food industry.

Balancing Industrial Growth Priorities

a) Domestic Job Creation

• Localization of Production: Encouraging domestic manufacturing of labour-intensive goods like textiles, plastic ware, and furniture prevents job losses due to outsourcing.
  For example: Imposing higher tariffs on imported finished goods can promote domestic production and local employment.
• MSME Empowerment: Expanding credit access, skill development, and technology transfer ensures MSMEs contribute significantly to employment generation.

b) Technological Advancement

• AI and Automation in Manufacturing: Focusing on AI-driven automation and Industry 4.0 technologies enhances productivity without undermining employment.
  For example: The National AI Mission promotes intelligent automation in precision manufacturing to enhance competitiveness.
• Encouraging Deep Tech Startups: Supporting R&D in robotics, quantum computing, and semiconductor design ensures India remains at the forefront of emerging technologies.
  For example: The ₹10,000 crore Fund of Funds facilitates innovation in deep-tech sectors. 

c) Environmental Sustainability

• Green Industrial Ecosystem: Implementing strict environmental norms and green incentives ensures industrial growth without ecological damage.
  For example: The Battery Waste Management Rules, 2022 mandate recycling of lithium-ion batteries for sustainable EV expansion.
• Decarbonization through Clean Energy: Encouraging solar, wind, and green hydrogen industries to ensure a low-carbon manufacturing transition.
  For example: India’s PLI scheme for electrolyzers accelerates the green hydrogen economy, reducing fossil fuel dependence.

d) Global Competitiveness

• Export-Oriented Growth: Strengthening manufacturing for global markets with targeted incentives in electronics, textiles, and auto components.
  For example: The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme boosts India’s export competitiveness.
• Trade Defense Measures: Implementing anti-dumping duties and quality standards to protect Indian manufacturers from cheap imports.
  For example: India imposed anti-dumping duties on Chinese steel to support domestic producers.

Crafting a Comprehensive Industrial Policy for a Developed Nation

• High-Powered Institutional Framework: Establishing a centralized industrial development council for policy coordination and monitoring across ministries and states.
  For example: A National Industrial Strategy Board could oversee the execution of manufacturing policies efficiently.
• Strategic Trade and Investment Policies: Creating bilateral agreements with key markets to enhance foreign investments in high-value manufacturing.
  For example: India’s trade deal with the UAE facilitates duty-free access for key industrial exports.
• Strengthening Industrial Corridors: Expanding industrial corridors and SEZs with world-class logistics, connectivity, and infrastructure to attract global firms.
  For example: The Delhi-Mumbai Industrial Corridor (DMIC) enhances integrated supply chains for high-tech manufacturing.
• Targeted Financial Incentives: Providing subsidies, tax breaks, and credit support for domestic manufacturing of critical industries.
  For example: India’s EV battery PLI ensures domestic production, reducing import dependency.
• Skill and Entrepreneurship Development: Upgrading vocational training institutes and promoting entrepreneurial support systems for MSMEs and startups.
  For example: PM Kaushal Vikas Yojana enhances skill training aligned with industry needs.

A strong industrial policy must integrate automation with employment generation, leveraging AI and skilling initiatives to future-proof the workforce. Green manufacturing and circular economy models can align growth with sustainability. Strengthening R&D, FTAs, and ease of doing business will enhance global competitiveness. A resilient, inclusive, and tech-driven approach can propel India toward developed nation status.

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