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Informist, Tuesday, Mar. 25, 2025

 

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--Industry secy: Aim for manufacturing to reach 25% of GVA 
--CONTEXT: Industry Secy Amardeep Bhatia speaking at CII National Mfg Summit 
--Industry secy: Govt feels much more needs to be done towards deregulation 
--Industry secy: Discussed deregulation in mfg with chief secys of states 
--Industry secy: Working with states to ensure infra to cut logistics costs 
--Industry secy: Have clear action plans about states' logistics policies 
--Industry secy: Hope PLI schemes will yield much better results going ahead 
--Industry secy: Quality remains major challenge for mfg sector 
--Industry secy: Need to produce quality goods, ensure issues are addressed 
--Industry secy:Industry must rely on local sources to fill value chain gaps 
--Industry secy: Start-ups focused on services, need to expand to mfg 
--Industry secy: Need to ensure tech availability to produce capital goods

 

MUMBAI – The government feels that much more needs to be done towards reducing the burden of regulations, towards deregulation, and also towards reducing the cost of doing business, Amardeep Singh Bhatia, Seceratary for Department for Promotion of Industries and Trade, said virtually at the Confederation of Indian Industry manufacturing summit on Tuesday.

 

"Towards this direction, I don't think the business industry is aware about that, but there is a task force which has been set up under the chairmanship of the Cabinet Secretary, which consists of secretaries drawn from various departments, which has taken up specific interventions which are required to reduce deregulation in each of the factors of production, in land, labour and other areas also," Bhatia said. Bhatia also said the aim is for manufacturing to reach 25% of gross value added. Currently, manufacturing is only 16-17% of GDP, Bhatia said.

 

To aid manufacturing, the government has been in constant touch with state secerataries, Bhatia said. "There is an elaborate action plan which has been drawn up on what needs to be done by each of the states. The secretaries are making visits to the state governments, sitting with the chief secretaries, going through each of the points in the action plan, and providing hand-holding to ensure that they move in further deregulating at the state level, because this is what the industry has been asking for some time," he said. 

The aim is to reduce the cost of logistics to the global benchmarks of 7-8% or even lower as we go forward, Bhatia said speaking on the high cost of transportation in India. 

 

Bhatia also said that production linked incentive schemes will yield better results in the future because quite a lot of manufacturing units which were in the initial years of production would have stabilised their production and would have much more exports and domestic sales happening as we go forward. 

 

"PLI scheme in sectors has shown very good results. We have 1.61 lakh crore (INR 1.61 trillion) of investment which has come in as of March 2025 which has facilitated around 14 lakh crore (INR 14 trillion) of production and contributed around 5.31 lakh crore (INR 5.31 trillion) of exports generating around 11.5 lakh (1.15 million) jobs," Bhatia said. 

 

Bhatia also said that quality remains a key challenge for the manufacturing sector. "We have introduced QCOs (quality control orders)...aimed to push the industry towards improving quality of products in the country." The industry must rely on domestic sources to fill the gaps in value chains and should take advantage of the domestic vendor ecosystem. On startups, Bhatia said that there are more than 1.6 million registered players in the country and want to expand this ecosystem across sectors including services and manufacturing.

 

India is too dependent on foreign countries when it comes to technology, Bhatia said. "Technology is another related aspect, where I feel we are dependent to a large amount on foreign countries, in fact China has been able to build a lot of technology strength, and we have to look into how we collaborate, already there are government initiatives with the US," he said.  End

 

Reported by Kabir Sharma and Anjana Therese Antony 

Edited by Akul Nishant Akhoury

 

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