Focus on fixing gaps in infra for mfg target

New Delhi: Coordinated efforts from the government, private sector, academia, R&D institutions, and financial stakeholders are crucial for India to achieve its goal of becoming a manufacturing powerhouse amid an uncertain global environment, Economic Survey 2024-2025 said on Friday.

It also said that the rise of China as a manufacturing powerhouse and its impact on the manufacturing aspirations of other nations, as well as the supply of minerals, materials, machinery, and equipment needed for energy transition, pose challenges. Amidst this, it said, India is in the middle of a change that represents an unprecedented economic challenge and opportunity. The survey stressed that China is a dominant force in the global manufacturing and energy transition ecosystems as it has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.

“Hence, in a rather unsupportive global environment, it calls for lasting, coordinated efforts from all tiers of government, the private sector, the skilling ecosystem, academia and R&D institutions, as well as financial stake holders to enable India to realise its ambition as a manufacturing powerhouse,” the Survey said.

It added that the domestic manufacturing efforts under the PLI (Production Linked Incentive) scheme are expected to significantly support India’s renewable energy targets by reducing costs, improving energy security, and boosting employment. Domestic capacities are being built, but for now, India sources 75 per cent of lithium-ion batteries from China, and it has near negligible production capacity for key components like polysilicon, ingots, and wafers. It added that there is a dependency of the world on China for energy transition efforts.