Finance Minister announced on April 22nd that India is planning to nearly double the share of its manufacturing sector in the economy from the current 12% to 23% in the next 20 years. This push is aimed at creating more jobs and boosting long-term economic growth of the country.
To drive this transformation, the government is focusing on 14 key “sunrise sectors” emerging industries expected to thrive in the future. These include semiconductors, renewable energy components, medical devices, batteries, textiles, leather, and other labor-intensive industries. By strengthening these areas, India hopes to reduce its reliance on imports, absorb its young workforce, and build globally competitive supply chains.
She noted that the world is going through a major shift in how manufacturing works, especially with the rise of Industry 4.0, which includes automation, AI, and smart technologies. India is also evolving, she said, especially with the rapid rise of the gig economy currently employing 7.1 million people as of 2021-2022, and expected to grow to 230 million by 2030. However, she emphasized that while the service sector dominates India’s GDP at 64%, and the gig economy is expanding fast, manufacturing must not be left behind.
The government’s Production-Linked Incentive (PLI) scheme is a major part of the strategy to encourage investment in these high-potential sectors. It’s designed not just to grow output but also to generate employment, especially in areas like electronics, textiles, and leather.
She further highlighted that manufacturing plays a powerful role in strengthening communities and economies. It creates both direct and indirect jobs, drives the need for better infrastructure, promotes skill development, and fuels demand across other sectors. She cited historical examples, from 19th-century Britain to modern East Asia, where manufacturing served as the backbone of national economic transformation.
On trade issues, she also pointed out that consistent policies, stable governance, and a predictable tax system are keys to attracting investment especially in the wake of global uncertainties like the tariffs introduced during the Trump era in the US.
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