India Aims for a 25% GDP Share from Manufacturing: A New Unit to Track Progress

As India is aiming to become a developed nation by 2047, and according to experts, India will be the world’s 3rd largest economy by 2027, India needs to focus on its manufacturing capabilities and increase the manufacturing units of its companies. Currently, China is the world’s manufacturing hub and holds a monopoly on manufacturing. Taiwan, which China claims comes under the Chinese mainland, is one of the biggest semiconductor producers in the world.

To compete with China, the Indian government released many schemes to attract multinational companies to set up their manufacturing units in India. Make in India is among them, where companies will get tax benefits and price discounts on the products they will make or assemble within the nation.

The Indian government is considering making an intelligence unit to track all the progress and data better to understand the problems and opportunities in the market. Government intelligence will keep records of exports, technology, labour, and other factors. The government wants Indian manufacturing units to compete on the world stage, just like the Indian service sector.

Currently, the manufacturing sector of India contributes around 17% of India’s GDP, which the government is planning to boost to around 25% of GDP from the manufacturing sector through many initiatives like the Production-Linked Incentive (PLI) Scheme and Make in India.

Though some critics think making India compete with China is like trying to shake Mount Everest, China has been in the manufacturing industry for the last 30–40 years, just like India has had a strong hold on the service sector the same way China controls manufacturing units around the globe. China has more skilled labour than India, and because of that, multinational companies want to set up their plants in China.

On the other hand, many experts believe India might shake the empire of China’s manufacturing units. After COVID-19,  things have changed, and companies want a nation on which they can rely, and India can be that nation. That is why Tesla is also setting up its plant in India, and Apple recently started assembling their phones in India.