| India’s Manufacturing and Electric Vehicle Sectors May Soon Take Giant Leap Forwards
The much-needed kickstart the government’s Production Linked Incentive (PLI) schemes and a ₹1 lakh crore innovation fund announced in the Union Budget are expected to give to India’s manufacturing and electric vehicle (EV) sectors which have been inching closer towards rapid expansion. The initiatives aim at boosting domestic manufacturing, innovation, and industrial infrastructure development. The mantra even had an echo in the FICCI AGM 2024.
Electrification is changing the face of the industry, and the ministry has zeroed down on cost-effective manufacturing and enhancing the value addition in the domestic economy,” said Kamran Rizvi, secretary of the ministry. He emphasized, “India’s solid base of industries places it well for sustained growth, especially with EVs increasingly being an important driver of the Indian economy.”.
Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade DPIIT, spoke on initiatives such as the National Industrial Corridor Program as well as reforms that are steered to upgrade the business environment. Such efforts have created smart industrial townships and sector-specific parks in Tier 2 and Tier 3 cities and thus contributed to the industrialization process. “FDI liberalisation and these reforms drive India’s industrial growth,” he said.
The deep-tech incubators and governmental support to the startups are also getting merits in the startup ecosystem in India. Bhatia says, “The innovation fund of ₹1 lakh crore opens more doors for the startups to align with the market demand, in turn increasing industrial progress.”.
FICCI Vice President Anant Goenka also stated that the domestic demand needs to be balanced with private sector. He further agreed to the proposal of taming competition with the help of SEZs or special economic zones like specialized industrial parks in manufacturing.
Manish Sharma, FICCI Electronics and White Goods Manufacturing Committee chairman, said the demand would rise over the next two to three years on account of localization, value addition, and product customisation. “The PLI schemes are a very important catalyst for investments from the private sector. Supply chain corridors need to be addressed if India is to see industrial growth,” he said.
Sulajja Firodia Motwani, Chair-Electric Vehicles Committee of FICCI, mentioned the growing dominance of electric vehicles in India’s automotive supply chain. She demanded a new structure of tariff, enhanced PLI incentives, and more research and development activities to position India at the forefront of global leaders in EVs and production.
Such strategic initiatives and investments enable India to take the lead in manufacturing and electric vehicles sectors, with sustainable economic growth and innovation.
