The present policies of the Indian government aim to enhance the manufacturing sector’s contribution to GDP, with a specific focus on Micro, Small, and Medium Enterprises (MSMEs). Here are some key initiatives:
- National Manufacturing Policy: This policy targets a manufacturing GDP share of 25% by 2025. It emphasizes creating an enabling environment for manufacturing growth.
- Make in India: Launched to boost both domestic and foreign investments in manufacturing, this initiative encourages companies to set up production facilities within India. It aims to enhance the manufacturing ecosystem and promote self-reliance.
- Production Linked Incentive (PLI) Scheme: The government has allocated INR 1.97 lakh crore to 14 key manufacturing sectors through this scheme. It provides financial incentives to manufacturers, encouraging them to increase production and generate employment.
- Atmanirbhar Bharat Package: Introduced during the COVID-19 pandemic, this package supports businesses, including MSMEs, by providing financial relief and promoting self-reliance.
While these policies have initiated progress, challenges such as infrastructure gaps, access to finance, and skill development remain. Therefore a holistic approach addressing infrastructure, finance, and skills development is essential to achieve faster economic growth through the manufacturing sector, especially via MSMEs. These enterprises play a crucial role in realizing India’s vision of a robust trillion-dollar manufacturing output and a $5 trillion economy by 2025.
