Many industry experts believe that the manufacturing sector will boom ahead of the 2024 budget. Amrit, CEO and Co-Founder of Zetwerk, stated that this is India’s manufacturing moment and that they will boom in India, potentially challenging China’s manufacturing dominance.
The government is in talks with state governments about opening more SEZs (Special Economic Zones) on the outskirts of cities where companies can set up manufacturing units at a low cost and maximize profits.
This will benefit not only the state and central governments in terms of increased tax revenue but also local labourers and residents because a manufacturing unit will be established, creating more and more jobs each year with greater efficiency.
Economic zones also attract multinational companies from all over the world because SEZs provide numerous benefits, such as reductions in taxes and additional jurisdictional power in the region.
On the other hand, the government is willing to open more battery manufacturing plants and plans to establish semiconductor chip manufacturing companies, as we all know that technology is the future of the world.
Some critics argue that the government and experts are inflating growth and oversizing the manufacturing unit. They also point out that India is already far behind China in terms of development, making it difficult for the country to overtake them this quickly.