Shrinivas Dempo – the President of the All India Management Association (AIMA) has suggested that India needs to increase the share of manufacturing in its GDP to one-third by 2047 in order to achieve developed economy status. He stated that India’s per capita GDP should multiply approximately nine times in the next 25 years to meet this goal, as per the Reserve Bank of India’s assessment of the need for an average growth rate of 7.6 percent until 2047.
India Needs to Increase the Share of Manufacturing : AIMA President
Dempo emphasized that achieving this target requires substantial investments in infrastructure, technology, education, skills and healthcare; along with a significant overhaul of management and governance practices. Currently, manufacturing accounts for around 16 percent of India’s GDP and the country’s GDP stands at over USD 3.7 trillion.
Dempo also highlighted India’s growing global significance, particularly at the recently concluded G20 Summit where world leaders recognized India’s progress and potential. He mentioned that India’s economy is key to its role in the world and the country is already the fifth-largest economy with a trajectory to become the third-largest.
Furthermore, Dempo pointed out India’s attractiveness for production due to its large workforce with an expected 1.4 billion people of working age by 2030. He noted that India’s consumption potential is appealing to investors and businesses.
In a separate development, the Indian government extended the export benefits provided under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for an additional year until June 2024. RoDTEP offers refunds for taxes, duties and levies incurred during the manufacturing and distribution of exported goods. The extension is expected to support exporters in negotiating better terms for international contracts.
The RoDTEP Committee within the Department of Revenue, will review and recommend ceiling rates for different export sectors. This scheme replaces the Merchandise Exports from India Scheme (MEIS) and currently covers over 10,342 export items providing incentives in the form of transferable duty credit scrips that can be used to pay import duties or sold in the market by exporters.