Government's confidence in reaching a $5 trillion economy in three years and in becoming the center of global supply chains.
In the context of "Empowering India's Manufacturing Competitiveness," during the ASSOCHAM Third Global Value Chain Meet, In his special guest speech, Shri. Surendra Ahirwar, Joint Secretary, Ministry of Commerce and Industry, Government of India, emphasized the government's confidence in reaching a $5 trillion economy in three years and in becoming the center of global supply chains. India has never had a better opportunity to innovate, experiment, and take reasonable risks. India has one of the biggest startup ecosystems in the world, and the country's economic progress depends on the advancement of its digital, physical, and phygital infrastructure.
We require financial resources and investment and also capital push for infrastructure in the manufacturing sector is given by the proactive government. Allocation of 11.11 lakh crores for the industry in this budget and doubling capital expenditure and now constituting almost 3.4% of GDP. There has been a provision of 1.5 lakh crores which is being given to states for capital expenditure for the development of infrastructure. States are also investing in big ways to create the infrastructure to meet the requirements. It's not confined to urban areas but rural as well. PM Gram Sadak Yojana is a good example of that. Private investments have also come in to boost infrastructure with the PPP model, he added.
PM Gati shakti masterplan is also a mechanism and most innovative government measure which is truly transformative. This has brought all ministries at the central government but all states at the single platform in network planning or technical support. This has been ensuring government approach towards development with integrated action. Multi model infrastructure is taken care of at all levels.
Shri. Sanjeet Singh, Senior Advisor, NITI Aayog addressed about vision of India in 2047 for Viksit Bharat as the third largest economy in the world. Essential goal is to become industry oriented for advancement of development. We are looking at quality of life for citizens, large economy as a size of developed nation. We need to grow at 8-9% to derive sustainable pace of growth. A framework should be designed with transformation pillars like significant investment in healthcare, education and infrastructure; Deep social commitment in the lives of poor; structural and institutional reforms like GST, use of digital technologies like UPI, innovation in science and businesses.
Shri. Vinod Pandey, Chairman ASSOCHAM Manufacturing Council and Director, Government and External Affairs, CSR, BMW India gave his welcome address by focusing on the key growth period for India for sustainable economic ways leading to high job opportunities and reduction of costs. Role of manufacturing is pertinent as it remains integral for developing economies. We as a nation should fully exploit manufacturing opportunities for increased GDP contribution. Our goal is to reach a 25% contribution from manufacturing sectors which will help in creating 100 million jobs but also support a strong skill development ecosystem to make India globally competitive. Automotive industry contributes significantly to the manufacturing sector with turnover of about INR 20 Lakh crores and 35 billion US dollars in exports, he added.
During the theme session, Shri A. Bipin Menon, the Development Commissioner of the Noida Special Economic Zone (NSEZ), offered his perspectives by emphasizing the significance of national investment manufacturing zones. PLI plan experience has proven invaluable for some industries and for encouraging the manufacturing sector. Because there are fewer limitations, providing services is easier than manufacturing goods. The public digital applications have been essential, and rural infrastructure has to be prioritized. Funding and credit guarantee programs encourage MSMEs to pursue a growth trajectory in manufacturing.
Shri. Suhail Nathani, Chairperson ASSOCHAM WTO Trade & Investment Council and Managing Partner Economic Laws Practice set the context related to challenges as India has a long way to go in manufacturing. He stressed on how India will soon have 420 million in the workforce, and we really need to do something to increase the productivity in the sector and reach above 2-3% in global trade. India-US trade is really crucial to build partnerships for world trade activities. The steel industry is most evolved in manufacturing making it a global player. More reforms to be made to bring in investments and law courts should be more stable in passing judgements, he said.
More job prospects in India as well as skill and development are contingent upon the global value chain, according to Shri. Dhiraj Nayyar, Sr. Vice President -Economics & Policy Strategy & Business Development, Vedanta. He emphasized on the larger firms that play an anchor role to drive the manufacturing sector for more investments. MSMEs should tap into larger mediums, he added. Intra trade is happening and should become a dominant player. Competitiveness is the key to delivering standard quality. Land aspects have been an elephant in the room and move beyond and find solutions in creative ways leveraging digital infrastructure.
Shri. Kishore Balaji, Executive Director - Government & Regulatory Affairs, IBM discussed the need for more extensive industrial regulations in the industry. The startup ecosystem has expanded and become notable in the country's unparalleled growth. He stated that India will soon have the world's most populous labour force. The goal of research and development should be to make manufacturing globally competitive.
Shri. S Seetharaman, Former Chairman – WTO Trade & Investment & Founder, Sarvada Legal gave his concluding remarks.
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