Unlocking India's Manufacturing Ambitions 2024

Unlocking India's Manufacturing Ambitions 2024

General Studies-3; Topic: Economic growth and development

India aims to grow its economy to $10 trillion by 2035, with manufacturing's share expected to increase from 15% to 25% of GDP. The goal is to increase employment elasticity of growth.

Government Initiatives -

1. Production Linked Incentives (PLIS) - The government has launched the ‘Production Linked Incentive (PLI)’ to boost the domestic manufacturing in key sectors.
2. Make in India – This program aims to facilitate investment, innovation, skill development, and to build the best-in-class manufacturing infrastructure.

3. Industry Hubs – All the states are working to attract investment and promote manufacturing industry.

The Overlooked Narrative -

Worker Empowerment - Amidst debates over monetary incentives and land rules, worker empowerment is regularly neglected as a key factor in unlocking India's manufacturing prowess. Safe Accommodation - Safe, on-premises or factory-adjoining employees accommodation is important for addressing troubles associated with skilling, productivity, and attrition.

Benefits of Workers' Accommodation

1. Reduced Costs – The main benefit of the workers accommodation is that it reduces the transportation costs and improves the worker’s productivity by eliminating long commutes.

2. Workforce Empowerment – It permits the creation of ladies, women-handiest or girls-majority majority factories, selling the worker and girls's ladies's empowerment. 3. Skill Development – This addresses the issues which might be related to the abilities, productivity, and attrition through offering environment.

Policy Implications -

1. Land allocation - Previous factory construction should be enhanced to provide staff accommodation along with land allocation.

2. Flexible System - Flexibility in business processes to enable production.

3. Fiscal incentives - The position of the central government in providing tax incentives and priority quarters.

4. Quarter tagging for production finance.

Historical examples in India -

• Public - Public sector schemes like ‘Bhilai’ and private companies like ‘Tata Steel Jamshedpur’ prioritize housing and communities.
• Changing times - Although circumstances have changed, the basic concept of dealing with professional housing remains relevant.

Triangular Leadership -

Centre/State, Private Sector - Collaboration between the Centre, state, and private private sector firms is essential to unlock India's manufacturing ambitions.

Workers' Accommodation - Workers' accommodation should be a part of the 100- the 100-day plan for the new government, as it could could be the "chhoti chabi" that opens the "bada tala" "bada tala" of India's manufacturing progress.