Topic– Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
4) The Indian government has set an aggressive target of increasing the manufacturing share to 25% of GDP by 2025. What are the strategies that will help India achieve this goal? Discuss.(250 words)
Why this question
India has launched various initiatives – Make in India, improving ease of doing business etc to expand and improve its manufacturing sector. However, the policies have largely not brought forth the required results. It is therefore essential to discuss a strategy that could work for India.
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail as to what strategy should India adopt in order to increasing the manufacturing share to 25% of GDP by 2025.
Structure of the answer
Introduction– write a few introductory lines about India’s manufacturing sector- e.g contribution to GDP, and mention its importance as employment and revenue generator.
Discuss in points/ paras the strategy needed to reach the goal of increasing the manufacturing share to 25% of GDP by 2025. E.g India is expected to jump six ranks to No. 5 in the 2020 Predicted Manufacturing Competitiveness. Interestingly, India’s manufacturing labour cost in 2015 stood at $1.72/hour compared to $37.96/hour for US; The cost of production can come down heavily with the help of 3D printing and automated real-time processes in manufacturing. India should give incentives, tax credits and grants for investing in this technology; to move electronics manufacturing from semi knocked down (SKD) to completely knocked down (CKD) kits. This would mean more components getting imported than semi-assembled parts and more jobs; The scale of manufacturing in India needs to be increased, but that cannot happen by catering to the domestic market alone. Companies need to be able to tap global markets, for which India needs a strong policy that provides incentives for export; improving ease of doing business etc.
Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.