Prime Minister Pushes for Local Production

General Studies Paper-3

Context

• PM Modi has urged Indians to buy made in India products, to build a developed India by 2047.
  • The Prime Minister laid the foundation for the country’s first PM Mega Integrated Textile Region and Apparel (PM MITRA) park in Madhya Pradesh’s Dhar district.

About

• The PM MITRA Park in Dhar is one of seven such establishments approved by the Union Ministry of Textiles.
  • The other sites are Tamil Nadu’s Virudhnagar, Telangana’s Warangal, Gujarat’s Navasari, Karnataka’s Kalaburagi, Uttar Pradesh’s Lucknow, and Maharashtra’s Amravati.
• Based on the 5F theme: Farm to Fibre to Factory to Fashion to Foreign – the initiative aims to boost India’s textile manufacturing and exports.

Manufacturing Sector of India

• India’s manufacturing sector is currently contributing 17% to India’s GDP.
• India has a goal to achieve the target of 25% GDP share for the manufacturing sector.
• India is focussing on 14 identified sunrise sectors like semiconductors, renewable energy components, medical devices, batteries and labour-intensive industries, including leather and textile, to enhance the share of manufacturing in GDP
• Growth and Performance: According to the Annual Survey of Industries (ASI) for 2022-23, the manufacturing sector registered a robust growth rate of 21.5% in output, with a Gross Value Added (GVA) growth of 7.3%.
  • Key sectors such as basic metal manufacturing, coke and refined petroleum products, food products, chemicals, and motor vehicles collectively contributed 58% to the total manufacturing output.
• Employment Generation: The manufacturing sector has also been a significant source of employment, adding approximately 22 lakh jobs in 2022-23.
  • Major states like Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh have been leading contributors to the sector’s GVA and employment.

Challenges Faced by India’s Manufacturing Sector

• Infrastructure Bottlenecks: High logistics cost, poor port connectivity, and power shortages leads to low output.
• Low R&D and Innovation: India invests less than 1% of GDP in R&D, limiting high-tech manufacturing.
• Import Dependence: Heavy reliance on imports for semiconductors, electronics components, and defence equipment.
• Skill Gaps: There is a major Mismatch between workforce skills and industry requirements.
• Low Productivity: Due to the outdated machinery, small-scale fragmented units, and limited automation productivity remains low.
• Global Competition: Countries like Vietnam, Bangladesh, and China offer cheaper production and better ecosystems making Indian products less competitive.
• Environmental Concerns: Rising pressure for sustainable and green manufacturing with high compliance costs.

Major Initiatives Taken to Enable Make in India

Recent Achievements of Manufacturing Sector of India

• Ease of Doing Business: In the World Bank’s Doing Business Report (DBR) 2020 India was ranked 63rd up from 142nd rank in 2014.
• Production of Vaccine: India achieved COVID-19 vaccination coverage in record time but also became a major exporter to many developing and underdeveloped countries across the world.
  • India supplies nearly 60% of the world’s vaccines, meaning every second vaccine globally is proudly made in India.
• Vande Bharat Trains: It is India’s first indigenous semi-high-speed trains, and are a shining example of the success of the ‘Make in India’ initiative.
  • As of now, 102 Vande Bharat train services (51 trains) are operational across Indian Railways.
• INS Vikrant: It is the first domestically made aircraft carrier.
  • In 2023-24, defence production soared to ₹1.27 lakh crore, with exports reaching over 90 countries, showcasing India’s growing strength and capability in this critical area.
• Electronics: Production nearly doubled from USD 48 billion in FY17 to USD 101 billion in FY23, driven primarily by mobile phones, which now constitute 43% of total electronics production.
  • India is the second-largest mobile manufacturer in the world and now manufactures 99% domestically.
• Indian bicycles have gained international acclaim, with exports to the UK, Germany, and the Netherlands soaring.
• Made in Bihar’ boots are now part of the Russian Army’s equipment, marking a significant milestone for Indian products in the global defence market.
• Amul has expanded its presence by launching its dairy products in the US promoting Indian dairy on the world stage.
• The textile industry has created a staggering 14.5 crore jobs across the country, significantly contributing to India’s employment landscape.

Conclusion

• The ‘Make in India’ initiative has had a transformative impact on the heavy industries and engineering sector.
• By fostering technological advancements, increasing domestic production, enhancing competitiveness, and generating employment, the initiative has played a pivotal role in strengthening India’s industrial base.
• With sustained policy support and continued investment, the sector is poised for further growth in the coming years.