Time is the biggest test for policymaking. as only years later can a nation evaluate and truly appreciate the impact of good policies. In the year when India celebrates a decade of Make in India, the foundation is set for Amrit Kaal, and a strong belief in self-reliance is instilled in everyone. The next decade will be the breakout year for the country as it sets to gather momentum en route to celebrating the centenary of its independence in 2047.
Historically, Indian products have been a global attraction for centuries in ancient and mediaeval times, and India has been a centre of global trade. Post-independence, we have grappled to restore the same glory. However, the transformative initiative, Make in India, has significantly bolstered the nation's economic landscape, shining the spotlight on localised manufacturing and invoking pride in Indian products. Spearheaded by the Prime Minister, the movement has encouraged domestic and foreign investment, fostering innovation, and job creation. By promoting ease of doing business, streamlining regulations, and investing in skill development, Make in India has attracted numerous industries, boosting manufacturing capabilities. The initiative stands as a testament to India's commitment to self-reliance. economic growth, and its role as a global manufacturing powerhouse, showcasing a resolute march towards prosperity.
The incantation of the mantra, ‘Make in India''s thought and action have helped us pave the pathway for restoring our position as a preferred trading partner for the world. It is through this incantation that our nation today is poised on the brink of another golden era. The path ahead is usually significantly dependent on the road travelled in the near past. Not long ago, India leapfrogged to the position of being the world's fifth-largest economy. In the past decade, well-crafted Policies and quick decision-making have propelled the country's economic engine. Today, India stands at a 3.75 trillion-dollar GDP, a rapid rise from 2.04 trillion dollars in 2014. The trajectory of India's economic growth is also supported by the growing per capita income, which is driving a better standard of living for the people of India. The government's focus on capital expenditure, increasing the investment from Rs 3.9 lakh crore in 2014 to Rs 10 lakh crore in 2023, has not only contributed to nation-building but, more importantly, has created a supporting infrastructure for localisation in the country, helping strengthen the value chain for Indian manufacturing to flourish.
Currently, manufacturing accounts for 14 to 15 per cent of India's GDP. This is despite the pandemic shock, which brought the country and its domestic production to a standstill for a considerable period. In addition to undertaking key strategic measures to attract FDIs and the interest of international businesses to manufacture in India, the Indian Government has taken progressive steps to promote Indian manufacturing around the world. Furthermore, donning the mantle of being a global leader for sustainability, India has invested in strengthening the renewable energy market in the country. As of November 2023, India has about 44 per cent of power generation coming from non-fossil fuels, with solar accounting for 17 per cent of the energy mix.
Make in India has laid the foundation for localised manufacturing. On the road to India in 2047, we as a nation must capitalise on the following opportunities to accelerate the growth momentum:
Leverage the population dividend:
It is well known that ours is a young nation. However, we are also ageing rapidly. It is the right time to leverage the population dividend for the next couple of decades. Being labour-intensive, India can best utilise the huge population in the country by generating employment through localised manufacturing. There are two critical parts to this. The first is creating a qualified, educated, and skilled workforce to manage modernday manufacturing environments. The second is making the workforce more inclusive. As per the Global Gender Gap Report 2023, India has one of the lowest female labour force participation rates, with women accounting for 27 per cent of India's STEM workforce. Generally, professions such as IT and the service sector see a higher rate of female employment. Manufacturing, which is traditionally considered masculine, sees a weaker participation of women. It is noteworthy that the energy sector witnesses a higher prioritisation of women in their DEI strategies. Ensure the manufacturing of energy products as a key driver: India's economic growth will be powered by the energy sector, and our energy needs will grow manifold in the coming decades. The energy sector does not only include power generation; it also creates and fulfils the demand for a host of energy products. The growth of the energy sector will have a multiplier effect on the manufacturing industry. It is important to incentivise consumers to opt for Indian-manufactured energy products, which will cut down on our import bill and encourage organisations that manufacture in India. Luminous has been focusing on localisation, having invested in India's first green solar panel factory in Uttarakhand. A progressing ecosystem will encourage other players to localise, creating a competitive market and thereby benefiting the end consumer and the nation. It is noteworthy that renewable energy is a new, evolving space. Encouraging the localisation of renewable energy products, such as solar products, will help India gain early momentum in this space, which will also add to India's sustainability efforts.
Building a strong R&D ecosystem is going to be a major focus area in the near future. We need robust publicprivate partnerships to encourage R&D in the country. There is a need to provide strong financial incentives and support to scientists and research staff, as well as resources and infrastructure to R&D centres all over the country. A flourishing R&D environment will help India become a force to reckon with, especially in new-age sectors encompassing STEM, medicine, engineering, manufacturing, and legal domains.
Boost localisation in new-age sectors: The new-age sectors include fields such as renewable energy, AI, aerospace and defence technology, hi-tech semiconductors, and so on. With science and technology evolving around the domain, India must take the lead by promoting complete localisation of the manufacturing of products across these domains to become a manufacturing centre for the world. Accelerating Make in India in these areas will help us have unprecedented leverage over global trade and economics.
Accelerate digital transformation in manufacturing: Adopting automation and Industry 4.0 at a massive scale will also play a critical role in boosting sustainable, cost-effective, and efficient manufacturing services capable of catering to global demand.
Capitalise on changing trust dynamics in global trade: This is the perfect time as the world is looking for a reliable and trustable manufacturing partner, owing to the trust deficit in existing partners. We really should be looking at capitalising on this opportunity, as this will pay rich dividends in the coming future and will essentially put Make in India on the world map.
By strengthening these fundamentals, we will ensure that the world comes to India for its manufacturing needs. Make in India has a tremendous opportunity to be the single biggest factor in catapulting the Indian economy to the next level, generating millions of meaningful and well-paying jobs, and attracting huge revenue and investment to fuel our national growth. In the past decade, the foundation has been set. Now is the time to begin powering our way on the growth pathway for Amrit Kaal 2047.
