“Manufacturing has seen a nascent recovery in the past few months. The government could use the positive sentiment to push for bigger reforms in the sector. There is, however, a need to further strengthen India’s manufacturing sector. India should focus on building an ecosystem for manufacturing competitiveness through economies of scale, industrial parks, reducing imports, and focus on increasing exports. The Rs 20 lakh-crore Atmanirbhar Bharat Abhiyan announced by the government in May 2020 holds the key to make India self-reliant by promoting domestic manufacturing and harnessing the existing strengths that have been built by the sector over the last few decades.
India has an unique opportunity in leveraging its demographic dividend, competitive costing and positioning in the global supply chain reconfiguration race. The upcoming Budget 2021-22 should take all these aspects into account and focus on fast-tracking initiatives, policy changes and incentive packages that will help enhance the share of manufacturing in the economy.
The Centre should also consider schemes like the patent box program promoted by the British government so that in the future, industries will be incentivised to register IP in India.”