New Delhi: The Indian government has set its sights on increasing its share of manufacturing in the GDP from the current 17 per cent to an ambitious 25 per cent by 2025. The announcement came on Friday during the 118th Annual Convention of the PHD Chamber of Commerce and Industry (PHDCCI) in the national capital, where the Minister of Petroleum and Natural Gas, Hardeep Singh Puri, addressed key industry stakeholders.
Minister Puri underscored the government’s commitment to this objective, stating that Prime Minister Narendra Modi’s call for ‘Make in India, Make for the World’ at the World Economic Forum earlier this year signalled India’s readiness to bolster its manufacturing sector.
While highlighting global supply chain realignment, Puri highlighted India’s emergence as an alternative supply source on the global stage, attributing this to the country’s abundant raw materials, competitive labour costs, expanding manufacturing capabilities, and entrepreneurial spirit. He emphasised the importance of economic reforms and policies such as the GST, the Insolvency and Bankruptcy Code (IBC), asset monetization, labour law reforms, the National Infrastructure Pipeline, and the Gati Shakti mission for multimodal connectivity in addressing structural deficits.
The minister also proudly showcased India’s strong industrial foundation, noting that the nation ranks as the second-largest producer of steel, cement, and coal. Furthermore, India boasts the second-largest construction of the built environment, the fourth-largest railway network, and the second-largest road network. In the automobile sector, India leads as the largest producer of two-wheelers and the fourth-largest producer of four-wheelers.
Mentioning the Production-Linked Incentive (PLI) schemes, the minister credited the PLI scheme with revolutionising manufacturing across 14 strategic sectors. He revealed that due to these schemes, FDI in the manufacturing sector had surged by 76 per cent.
Over the next five years, the PLI initiatives are expected to create an impressive 60 lakh (6 million) additional jobs. Discussing the transformative power of PLI, Puri pointed out a 20 per cent increase in value addition in mobile manufacturing within just three years, accompanied by a remarkable 139 per cent surge in smartphone exports.
In the energy sector transition, the minister also touched on the transformation witnessed in the energy sector. India is actively pursuing both traditional fuel exploration and energy transition. Puri revealed that India aims to increase its net geographic area under exploration from 8 per cent (0.25 million sq. km.) to 15 per cent (0.5 million sq. km.) by 2025. He stated that India is a global exporter of petroleum products and possesses the fourth-largest refining capacity worldwide. Highlighting the significant strides made in the biofuel sector, Puri noted that ethanol blending had risen from 1.53 per cent in 2013-14 to an impressive 11 per cent in 2023.
He further emphasized India’s commitment to sustainability by launching the National Green Hydrogen Mission, with a budget allocation of Rs. 19,744 crores, aimed at developing a green hydrogen ecosystem. While mentioning the green energy transition, Puri said in line with India’s journey and revealed that the country is actively supporting electric vehicles through the PLI scheme. Additionally, plans are in place to establish alternative fuel stations at 22,000 retail outlets by May 2024.
India’s ambitious goals in both manufacturing and energy sectors signal its commitment to sustainable growth, innovation, and global competitiveness. As the nation continues to evolve, it seeks to play a prominent role on the world stage while addressing pressing economic and environmental challenges.