Latest news with #NationalManufacturingMission
Time of India
2 days ago
- Business
- Time of India
Consumption expected to pick up, public investment likely to remain key growth lever: K M Birla
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's will remain the fastest growing major economy in 2025-26 on the back of sound microeconomic fundamentals and a robust financial sector, leading industrialist Kumar Mangalam Birla has emerged as an "outlier of stability and momentum" in a world adrift, the Aditya Birla Group 's chairman said in the latest annual report of the flagship firm UltraTech Cements."With projected GDP growth of 6.4-6.5 per cent, it retained its crown as the fastest-growing major economy. The final quarter surged to 7.4 per cent, powered by construction, manufacturing, and sustained government capital outlay," Birla said in his address to shareholders. The annual report was released on on the outlook for the external sector, though exposed to global turbulence, remains cautiously optimistic, he said, adding that the ongoing trade negotiations and regional partnerships offer a buffer against a volatile trade landscape."While global financial market volatility, geopolitical tensions, and trade fragmentation pose downside risks, India's sound macroeconomic fundamentals, robust financial sector, and commitment to sustainable growth position the economy to remain the fastest-growing major economy in 2025-26," he UltraTech Chairman said manufacturing momentum is expected to build in the country, helped by the government's production-linked incentive (PLI) the new National Manufacturing Mission and infrastructure remains a priority, buoyed by initiatives under Gati Shakti, higher allocations for affordable housing, and a renewed push under the Asset Monetisation the world economy, Birla said, "Looking ahead, global growth is expected to moderate to 2.8 per cent in 2025 before edging up to 3 per cent in 2026."In this, much of the drag is expected from advanced economies, with their collective growth projected to slow from 1.8 to 1.4 per cent, he Birla also said monetary easing and subsiding inflation offer some tailwinds, though vulnerabilities such as geopolitical conflict, high borrowing costs, and deteriorating trade dynamics still persist."Inflation is projected to fall further to 4.3 per cent in 2025 and 3.6 per cent in 2026, but service sector inflation remains sticky, and trade disruptions could yet spark fresh cost pressures," he new tariffs and retaliatory measures risk pulling global trade volumes into contractionary he said, "recent bilateral trade deals suggest that diplomacy is not entirely off the table, even as rhetoric hardens".USD 67-billion Aditya Birla group business is spread across 41 countries, and around 50 per cent of the revenue is from its global group has launched new platforms and rapidly scaled in segments such as paints, jewellery retail, and in B2B e-commerce."At the same time, we deepened leadership in our core sectors like cement, metals, fibre, chemicals, and financial services. Each move was consequential on its own," he said.
Mint
16-07-2025
- Business
- Mint
Chandrajit Banerjee: Manufacturing competitiveness can yield growth, jobs and resilience
India stands at a pivotal moment in its economic trajectory. With the global manufacturing landscape undergoing a strategic realignment, India is uniquely positioned to emerge as a key player in global supply chains. This transformation can anchor long-term economic growth, generate large-scale employment and strengthen industrial resilience—critical pillars for achieving the vision of Viksit Bharat. Manufacturing success is also a strategic and national security imperative, as a string of recent domestic and global events have demonstrated. India's strong fundamentals—a growing middle class, rising consumption, a rich resource base and a youthful workforce—create a solid foundation. Yet, despite this promise, manufacturing contributes only about 17% to gross value added (GVA) and employs just over 11% of the country's workforce. These figures underscore the urgency of scaling and strengthening India's manufacturing base. Also Read: Manufacturing versus services: Why privilege one over the other? To harness the sector's potential, we need to adopt a comprehensive strategy focused on competitiveness, innovation and sustainability. I would suggest a five-pillar strategy to strengthen India's manufacturing competitiveness. My first suggestion is to empower the National Manufacturing Mission: This government initiative can be a game-changer. To unlock its full potential, the Mission should be operationalized as a cross-ministerial, action-oriented platform with clear objectives: to increase the share of manufacturing in GDP to 25%, expand merchandise exports to $1 trillion by 2030 and create jobs at scale. A three-tier governance model—providing strategic oversight, implementation support and outcome monitoring—can ensure its effectiveness. The Mission should prioritize high-value and labour-intensive sectors, adopt cluster-based development and introduce a dedicated sub-mission for advanced manufacturing. This sub-mission would accelerate the adoption of technologies such as AI, IoT, robotics, additive manufacturing and nanotechnology, while promoting R&D, cross-sector integration and global collaboration. Also Read: India's National Manufacturing Mission is just the catalyst this sector needs Second, bridge the 'missing middle' with capital support: One of the persistent structural issues in Indian manufacturing is the 'missing middle'—a gap between large enterprises and micro firms. Mid-sized firms often lack access to growth capital, which stifles innovation and scalability. To address this, the government could launch a capital support scheme offering interest-free loans, and up to 50% of the equity capital for projects in the ₹50- ₹1,000 crore investment range. Loans could be repayable over five years after a moratorium of ten years. Further, two fund-of-funds should be established—one focused on providing equity capital to small and medium enterprises and another on overseas technology acquisitions—drawing from the successful model used for startups. These funds would catalyse private investment and enable technology upgradation for globally competitive manufacturing. Third, accelerate the construction of large-scale industrial infrastructure that's world-class: For this, it is essential to have a robust national framework for land acquisition that streamlines acquisition processes, ensures fair compensation, enables compliance with environmental norms and facilitates coordination among all stakeholders. Also Read: Rahul Jacob: Manufacturing is crying out for a reality check In tandem, India must build its next generation of smart industrial cities along major industrial corridors. Drawing on successful models such as Sri City in Andhra Pradesh and AURIC in Maharashtra, the government should partner with the private sector to develop 10 new cities equipped with modern infrastructure, logistics and digital utilities. For faster development of the 12 smart cities already approved, an empowered group of ministers should be constituted with representation from central and state governments. A forward-looking national policy for private industrial parks—offering 'plug and play' infrastructure—can help scale up the effort to build large world-class parks that would attract both domestic and international manufacturers. Fourth, lower logistics and power costs: High logistical costs severely impact export competitiveness. The Eastern and Western Dedicated Freight Corridors (DFCs) are welcome steps, but momentum must be sustained by fast-tracking the proposed East Coast, East-West and North-South DFCs. A world-class multimodal logistics network will improve turnaround times, reduce costs and attract global investors. Similarly, rationalizing industrial power tariffs is crucial. Current high tariffs, driven by cross-subsidization and often arbitrary surcharges, hinder cost-efficiency. The Confederation of Indian Industry (CII) recommends implementing direct benefit transfers for subsidy-deserving consumers, with state governments funding these subsidies directly instead of doing it through distribution companies. Transparent tariff structures and reduced open-access charges will further improve reliability and investor confidence. Also Read: Think ahead: India's electronics manufacturing must go up the value curve Fifth, accelerate smart manufacturing and digital readiness: As the world moves towards Industry 5.0, India must build its capacity for smart manufacturing. CII proposes the creation of a National Digital Maturity Framework to guide businesses through the digital transformation journey—from foundational adoption to advanced integration. In parallel, establishing Centres of Excellence for Skill Development in smart manufacturing across key industrial regions will help build a digitally skilled and future-ready workforce. These centres can bridge the talent gap in AI, robotics, automation and data analytics—critical for high-productivity, innovation-led growth. Also Read: Time to re-imagine Indian manufacturing from the ground up To conclude, India's inherent strengths—its demographic dividend, strong domestic demand and globally competitive sectors like pharmaceuticals, auto components and renewables—provide a compelling case for a manufacturing-led economic strategy. A bold and cohesive policy framework focused on technology adoption, capital access, industrial infrastructure and digital readiness will help realize India's manufacturing potential. Reaching $7.5 trillion in manufacturing output by 2047 is ambitious but achievable—and it can serve as a cornerstone for a $30 trillion economy by India's centenary. We must unlock this opportunity not just to transform India's economic landscape, but also to secure its rightful place in the global manufacturing value chain. The author is director general, Confederation of Indian Industry (CII).
Mint
08-06-2025
- Business
- Mint
India's National Manufacturing Mission is just the catalyst this sector needs
India's National Manufacturing Mission (NMM), announced in the Union budget this year, was much awaited. While the sector has grown over the years in size, its contribution to our economy has not gained share. The need to increase manufacturing as a proportion of GDP has always been emphasized and this mission-mode approach announced by the government should make a difference. An ambitious, empowered and inclusive framework is expected to be the hallmark for this mission. It must target a share of at least 12% in global manufacturing output for India, as against the current 3%. Let me share a few thoughts on a framework that could help propel India as a manufacturer. Also Read: Time to re-imagine Indian manufacturing from the ground up The first aspect is the structure of the mission, which could determine the success or failure of the initiative. The NMM can consider a three-tier structure. At the initial level, the government could consider having inter-ministerial task-forces. These should focus on the five key areas spelt out by the finance minister in her budget speech for 2025-26: namely, the ease of doing business; a future-ready workforce; micro, small and medium enterprises (MSMEs); technology adoption; and quality. These five task-forces could be under the concerned ministries with various stakeholders as members. They should recommend policies, propose roadmaps and drive implementation. The NMM could be headed by a senior industry leader. This can be the second tier. Its main members could be secretaries of key government departments related to manufacturing; they can provide policy and strategic direction. In addition, CEOs from industry associations could be members, while state chief secretaries can be special invitees. This high-level private-public partnership model will be crucial for driving this mission. At the pinnacle of this structure could be a high-level committee headed by the Prime Minister. Its members could be the NMM chairperson, finance minister, commerce and industry minister, cabinet secretary and a representative of the Niti Aayog. This three-tier structure, in our view, would be inclusive and empowered to drive reforms and take the steps required to achieve our goals. Also Read: Think ahead: India's electronics manufacturing must go up the value curve The second aspect is whether the NMM should have a sectoral focus or address sector-agnostic issues. In this, the Federation of Indian Chambers of Commerce and Industry (Ficci) has suggested that its dominant focus should be on sector-agnostic areas, like regulatory reforms, cost competitiveness, the overall investment climate, skilling, quality, productivity and the like. The mission should also make strategic interventions in frontier-technology fields—such as electronics, batteries, defence, space, renewables, AI, quantum computing, etc—by boosting domestic design capability and value addition. Last year, the government announced an allocation of ₹1 trillion to encourage research and development (R&D) in sunrise domains by the private sector. We need to leverage this fund now to take a lead in the frontier technologies. The NMM's priorities are the third aspect. A sine qua non list would include macro-level policies, be it logistics, monetary, fiscal, tariffs or trade. These should be fully aligned with the mission's needs. It would also cover technology, which needs to be the key driver of manufacturing. A focus on value addition by way of design, key components and so on must also feature as a priority. So also export competitiveness, global value chain integration and import substitution in critical areas of dependency. As its fourth aspect, the mission will lay emphasis on MSMEs, which have been the main driver of manufacturing growth in several countries. Also Read: Rahul Jacob: Manufacturing is crying out for a reality check Ficci has suggested six areas of intervention: Training for MSME promoters to grow into mid-sized or large firms in the future; an impetus to family-owned businesses; the development of urban MSME zones, non-polluting MSME malls or urban industrial clusters within city limits to reduce logistical costs and enhance market access for small enterprises; support for environment, social and governance capacity among MSMEs; a catalyst for digital adoption across MSMEs to drive efficiency and growth; and light-touch regulations for three years for MSMEs in strategic areas to help them take off. For India to become a global manufacturing powerhouse, quality cannot be ignored. The mission should collaborate with industry consortiums to set Indian standards and India should take an active part in such processes at international standard-setting bodies. We need to promote and push Indian standards alongside our exports. Apart from the NMM, a high-level committee for regulatory reforms was also announced by the government. Ficci has suggested some broad terms of reference for its institutional structure, urging the adoption of a regulatory impact assessment framework to ensure transparent and consistent policy implementation across regulators. Overall, the two structures should lead to seamless communication and interaction between all stakeholders at every level—from central and state functionaries to experts and leaders of academia and industry—with everyone focused on one mission: manufacturing. The author is president, Federation of Indian Chambers of Commerce and Industry.
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Business Standard
02-06-2025
- Business
- Business Standard
Good news very soon on India-Oman free trade agreement: Piyush Goyal
Oman is the third-largest export destination among the Gulf Cooperation Council (GCC) countries for India Press Trust of India Paris Commerce and Industry Minister Piyush Goyal has said that negotiations between India and Oman for the proposed free trade agreement (FTA) are progressing, and some "good news" may come "very soon" on that. The negotiations received a much-needed impetus after the visit of Goyal to Muscat in January this year. The talks for the agreement, officially dubbed as the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023. "I think you will see some good news very soon on the Oman FTA," the minister told reporters here when asked whether the FTA talks with Oman can be concluded this year. Goyal is here on an official visit to hold talks with French leaders and businesses to boost trade and investments. He will also attend a mini-ministerial meeting of the World Trade Organisation (WTO) on June 3. In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments. Oman is the third-largest export destination among the Gulf Cooperation Council (GCC) countries for India. India already has a similar agreement with another GCC member UAE which came into effect in May 2022. The bilateral trade was about $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25. India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel. Taking about such agreements, the minister said these FTAs not just promote trade in goods and services, but also strengthen supply chain, bring confidence in businesses of both sides about stable polices, and predictability. "So in a way, it's a big message when you conclude an FTA," he added. When asked if India could see further domestic reforms as a result of these agreements, the minister said FTA stands on their own footing and have no relationship to "our own" domestic efforts to make the country more attractive. "These agreements are more towards opening markets on both sides which lead to greater competitiveness, improved productivity and efficiency in all processes," he said. Goyal said the National Manufacturing Mission, announced in the Budget, may come up soon. It will further bring an "orderly shape" to how states and the Centre work together in the direction of promoting manufacturing in India, he added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
30-05-2025
- Business
- Business Standard
National Manufacturing Mission to be launched next month: NITI CEO
The National Manufacturing Mission, announced in the 2025-26 (FY26) Budget, will be formally announced next month, NITI Aayog Chief Executive Officer (CEO) B V R Subrahmanyam said on Friday. The mission aims to propel India's manufacturing sector to a $7.5 trillion economy by 2047. 'We need a body with teeth, which can get things done. So, we are looking at how it is to be structured, the kind of muscle it needs to get things done spread across departments,' Subrahmanyam said at the Confederation of Indian Industry (CII) Annual Business Summit here. The mission is in the final stage, he said. In her Budget speech in February, the finance minister had said the National Manufacturing Mission would focus on five focal areas, i.e., ease and cost of doing business, future-ready workforce for in-demand jobs, a vibrant and dynamic micro, small and medium enterprises (MSME) sector, availability of technology, and quality products. The mission will also support clean-tech manufacturing to improve domestic value addition, and build an ecosystem for solar photovoltaics (PV) cells, EV batteries, motors and controllers, electrolysers, wind turbines, high voltage transmission equipment, and grid-scale batteries. 'It should be an overarching body, which has the power to give directions, control, and ensure that things get done… the idea is to understand, hand-hold, and see that these sectors get transformed within five to 10 years, in line with the mission's goal to achieve results by 2030 to 2035,' the CEO added. Citing the example of China's 'Made in China 2025' mission, prepared in the previous decade, that helped the neighbouring country become the largest automobile exporter from being a non-entity, the CEO said, NITI has probed their progress and mission in great detail. The mission will also look at skewed regional imbalances in manufacturing to ensure that the push is pan-Indian. A large part of the mission will be skilling initiatives by the Centre, with the Aayog looking to fundamentally change India's skilling framework. The government is also deliberating on new ideas like a 'skill passport' – the passport will be a record of a person's employable skills, keep an updated account of the skilling an individual goes through, and the number of times they have gone for reskilling and upskilling. The CEO also added that the industrial training institutes should be handed over to the respective industry – the government can fund it, but only industry has a handle on what the contemporary relevant skills are at a local level. The Aayog is also working on a net-zero carbon emission modelling framework. 'We don't have a pathway for the net-zero commitment by 2070. We've modelled it and next month we'll be announcing the pathway and making the model public... people can tinker with, and play multiple pathways to the same outcome,' Subrahmanyam said.
