India is preparing to redefine its economic power on the global stage. The government has developed a roadmap to make the country the world's next 'factory,' a move that could pose a significant challenge to China's long-standing dominance. Prime Minister Narendra Modi's administration aims to triple the country's exports to $1. 3 trillion (approximately 108 lakh crore rupees) by 2035. This time, the focus isn't just on subsidies but on dismantling the regulatory hurdles that have hindered growth for decades.
The $1.3 Trillion Export Goal by 2035
It's no secret that India has been striving to become a manufacturing powerhouse for years. Despite the 'Make in India' campaign launched in 2014 and a $23 billion incentive package in 2020, the goal of increasing manufacturing's share in GDP to 25% has remained elusive. Officials believe that previous policies didn't yield the expected results,. Prompting a strategic shift toward a more focused and aggressive approach.
30 New Manufacturing Hubs and Strategic Investment
Under the 'National Manufacturing Mission,' the government plans to establish approximately 30 manufacturing hubs across the country. An investment of about 100 billion rupees ($1 billion) has been earmarked for this purpose. These hubs will be located in areas with existing infrastructure or proximity to ports to facilitate smooth exports. Also, $218 million has been allocated specifically for high-tech sectors like semiconductors and energy storage.
Ending Red Tape and Regulatory Hurdles
The most critical aspect of this 'Mahaplan' is the simplification of rules. A major grievance for businesses in India has been 'red tape,' where obtaining approvals for land, electricity, and water can take months or even years. To address this, a high-level government panel will be formed. Chaired by a minister and including senior officials like the Cabinet Secretary, this panel will work with states to ensure factories receive affordable power and that labor laws are streamlined.
Focus on 15 Key Sectors
The government is now concentrating on 15 specific sectors, including high-end semiconductors, metals, and labor-intensive industries like leather. The belief is that financial incentives alone aren't enough; a structural overhaul is required to make India competitive, while this mission is expected to be a highlight of the upcoming budget, signaling India's intent to become the world's preferred manufacturing destination.