Page 8 - Artha

Focus Story

formulation of an economic Apart from investments, employment opportunities. driving job creation and advancements by actively intensity of extreme The government should 5. Investing in Digital the Ease of Doing Business and solar modules. promote a culture of
policy framework to set the boosting consumption, Further, the initiatives to economic growth. A PORTION OF THE adopting and integrating weather events due to announce a Green Leveraging Transformation and (EoDB) are transforming India 2. Developing industrial innovation and support the
scope for reforms which will which has the largest share enhance women’s As India builds its LENDING SUPPORT new age technologies. climate change, addressing Transition Fund, leveraging Industry 4.0 technologies, into a preferred destination corridors and clusters, creation of new products and
catapult the economy to in GDP, is also a participation in workforce, manufacturing capabilities, SHOULD BE Offering grants to AI/deep water security has become funds earmarked for green such as Artificial for global investments. These solutions.
sustained economic growth. sine-qua-non for sustaining such as setting up of it can tap into international EARMARKED FOR tech startups at the an urgent priority. The initiatives, CSR funds, and Intelligence, Robotics, initiatives are pivotal in which provide
Effective implementation of the domestic high growth women hostels, creche markets through increased MSMES product development stage government should set up private sector and Internet of things, and driving economic growth and state-of-the-art These changes are solidifying
these reforms hinge on the trajectory. Enhancing facilities, women specific exports. With global trade and introducing a National Mission on philanthropy contributions. Cloud computing, which fostering a conducive infrastructure, connectivity, India's position on the global
collaboration between Centre incomes in the hands of skilling programs and restructuring, India can 4. Research, innovation challenge/hackathons for AI Water Security that A portion of the lending India’s can improve productivity, ecosystem for businesses to and facilities for stage. With the mantra of
and the states, hence, individuals, by offering a promoting market access benefit by building reliable and technology startups at the monitors water resources support should be efficiency, and innovation. thrive. At a Government level, manufacturing units. These “Minimum Government,
institutional platforms should marginal relief in income for women-led self-help and resilient supply chains adoption are critical to commercialization stage through a public database earmarked for MSMEs. some steps that India is taking include the Delhi-Mumbai Maximum Governance,” India
be established to build tax at the lower end of the groups, will drive inclusivity through enhanced remain competitive on will promote technological and lays out strategic goals Finally, a National 6. Strengthening Human to improve the manufacturing Industrial Corridor, the continues to foster an
state-level consensus on slab spectrum, the recent in the employment manufacturing and exports. the global stage: advancement. The for sustainable water Commission on Adaptation Capital and Skill footprint are as follows: Chennai-Bengaluru ecosystem where businesses
reforms in areas such as land, announcement in the landscape. Establishing a Global Trade Research and innovation government should ensure management. Promoting should be set up to Manufacturing Development, especially Industrial Corridor, and the can thrive and contribute to the
labour, power (including Union Budget on the In addition, a slew of Promotion Organization are crucial to stay responsible use of Artificial climate-smart agriculture address India's vulnerability in the areas of Science, 1. Implementing the Amritsar-Kolkata Industrial nation's economic growth.
renewable energy), income tax changes in the measures announced for will support domestic competitive in a rapidly Intelligence (AI) by and other water-efficient to climate change. This Technology, Engineering, Production Linked Corridor.
agriculture, education, health, new tax regime is hence boosting MSMEs through exporters and help the evolving technological developing a farming practices will also commission should develop and Mathematics (STEM), Incentive (PLI) scheme, 3. Boosting research and
water, and fiscal sustainability. welcome and would increased MUDRA loan country reach the target of landscape and sustain the which are essential for the which provides incentives development (R&D)
These platforms can help to hopefully facilitate limit, introduction of credit US$2 trillion in exports of growth momentum. comprehensive framework help address water stress. policies based on risk Potential future of manufacturing. to domestic and foreign capabilities and fostering
foster collaboration between consumption among the guarantee scheme, credit goods and services. This for the ethical use of AI. To achieve the net-zero assessments, engage with manufacturers for innovation and
central and state middle class. support during stress body should set up Operationalization of the Besides, establishing robust target by 2070, clean experts and stakeholders, These steps, along with the increasing their production entrepreneurship. The
governments, ensuring that 2. Focus on health, period, setting up of branches in key trading Anusandhan National data governance policies. energy transition is and build grassroots existing initiatives of the in India and enhancing their Government has launched
reforms are effectively education and e-commerce export hubs, hubs worldwide to Research Fund with a Addressing AI skill gaps by imperative. capacity to enhance Government, can help India exports. The scheme
implemented across the employment among others, will further facilitate global market financial pool of Rs 1 lakh initiating skill training Several policy measures to resilience and adaptive realize its potential as a global covers 14 key sectors, several initiatives, such as
country. crore dedicated to spurring programs, also require expedite energy transition capability. The path to a manufacturing hub and a key including electronics, the Atal Innovation Mission,
generation is critical for drive employment. access for Indian products. private sector research and priority consideration. resilient and sustainable the National Research
inclusive and announced in the budget, player in the post-pandemic automobiles, Foundation, and the
Apart from this, we list out sustainable Government may consider The government has innovation at commercial 5. An integrated approach including taxonomy for future requires an world. The Government's pharmaceuticals, textiles,
the 5 key thrust areas which development: Education establishing an implemented numerous scale in the union budget for addressing water climate finance and setting integrated approach that concerted efforts to improve Startup India program to
should underline the focus of and health are critical International Mobility reforms to improve the will propel research and security, clean energy up of energy targets for addresses water security,
the new government. Authority under the ease of doing business, and innovation. promotes clean energy and
pillars for achieving Ministry of External Affairs this pace of reforms should and adaptation is key to hard-to-abate industries,
1. Government should inclusive and sustainable (MEA) to leverage global be continued to enhance India should be at the a sustainable future: are laudable steps towards builds adaptive capacity.
continue its thrust on growth. The government manpower shortages and the investment climate and forefront of technological With rising frequency and clean energy transition.
he Indian economy has First quarter of This initial period should capex and boost should announce roadmaps open overseas employment manufacturing M anufacturing is a key These initiatives need to be 1. Create a Culture of 3. Leveraging our
exhibited remarkable focus on laying a clear and consumption demand to increase expenditure on avenues for Indian competitiveness. Defining driver of economic complemented by a Quality and Strengths in Sectors like
strength and resilience amidst the new detailed roadmap, prioritizing while focusing on fiscal education to 6 per cent of workforce. timelines with deemed growth, employment, comprehensive and coherent Competitiveness in the Construction Equipment,
a challenging global reforms, and implementing prudence: Investment, GDP and on health to 3 3. Thrust on building approvals for regulatory innovation, and exports. India strategy that addresses the Industry. If India has to Textiles, Pharmaceuticals,
impressive growth rate of 8.2 government key initiatives that will drive particularly public capex, per cent of GDP to ensure manufacturing and permissions, establishing a has a large and diverse structural and systemic compete with the rest of Automobiles, and
environment. With an
has been the key driver of
affordable and accessible
the nation forward. Each
the world, it has to be on
Electronics, and diversifying
manufacturing base and today
challenges. While there can be
per cent in 2023-24, India has action taken should signal a India’s growth story in the quality education and export competitiveness centralized online Indian manufacturing has various aspects which are the basis of merit of the into new and emerging
grievance redressal
emerged as the fastest should set the strong commitment towards post-pandemic period. healthcare for all. should continue: mechanism, decriminalizing gained respect the world over. structural based, there are product or the service areas like Capital Goods,
growing major economy in continuing the reform Government should India's young population, Complementing the business laws, and certain factors which the being offered. This culture Renewable energy,
the world for three tone for trajectory and accelerating continue its thrust on with a median age of 28 services sector growth, introducing self and To achieve its vision of industry needs integrate of excellence has to down Biotechnology, and
consecutive years. This growth. One of the foremost tasks for capital formation. Along years, represents a vibrant rapid manufacturing third-party certifications becoming a US$5 trillion within itself if it has to to the last level, the SMEs, Aerospace.
achievement is underpinned actioning high the new government is with the focus on workforce that requires growth is essential for under various laws are economy by 2025, India needs compete with the rest of the where the bulk of the
by robust macroeconomic building consensus on infrastructure, government decent job opportunities. realizing the goal of Viksit crucial measures that can to significantly accelerate its world. manufacturing actually
fundamentals and solid policy growth and next-generation reforms. should also prioritize Generating employment Bharat. Government enhance ease of doing 4. Enhancing our
reforms that have fortified the Sustained reforms have health, education, and rural and livelihoods is critical to initiatives such as the business. Additionally, manufacturing growth and takes place. integration with Global
economy and weathered it development propelled India to its current infrastructure, such as Production Linked enhance its global 2. Developing and Value Chains (GVCs)
from global shocks. As the position, but to maintain this irrigation, warehousing, and reap the benefits of Incentive (PLI) scheme, government should competitiveness. The upgrading our and regional trade
new government takes the driven agenda high growth, next gen reforms cold chain infrastructure. demographic dividend and which have helped tap continue its focus on Government has launched Industrial Clusters and agreements (RTAs), which
reins, it inherits an economy in areas that fall under state While continuing the drive inclusive growth in India’s vast manufacturing reducing the cost of doing several initiatives to promote corridors, which can can offer opportunities for
at a high tipping point which or concurrent domains are thrust on capex, the the economy. The budget’s potential, need to be business. Including manufacturing, such as Make provide economies of scale, market expansion,
is poised for further growth The first quarter of the new crucial. The Union Budget government must adhere massive thrust on job sustained. Expediting the petroleum products and in India, Atmanirbhar Bharat, better infrastructure, and technology transfer, and
and development. The task government will be crucial in 2024-25 has identified next to fiscal prudence to creation, including the implementation of labour electricity in GST will help Production Linked Incentive access to skilled labour and quality improvement.
ahead is to maintain this setting the tone for actioning generation reforms as a key maintain macroeconomic announcement of three codes and launching reduce power and logistics (PLI) scheme, and National markets.
momentum and steer the a high growth and priority area, emphasizing the stability, targeting the schemes under national missions for costs. A task force may also Infrastructure Pipeline.
country towards becoming a development driven agenda. budgeted fiscal deficit of Employment Linked advanced manufacturing be set up to examine ways
developed economy by 2047. 4.9 per cent of GDP for Incentives (ELI) and and materials will further to reduce high shipping
FY25. increased allocation enhance India's costs for Indian exports Mr Deepak Shetty, Chairman, CII Manufacturing Council
towards skilling is poised manufacturing capabilities, and imports.
to generate significant and CEO & Managing Director, JCB India Limited

08 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 09
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
AUGUST 2024 AUGUST 2024