In a concerted effort to bolster its manufacturing sector, the Indian government is implementing strategic reforms aimed at enhancing the country’s global competitiveness. Despite the ongoing global economic challenges, India’s manufacturing sector remains a focal point, contributing only 17% to the GDP, which lags behind major economies like China and the USA.
Recent initiatives, particularly the Production Linked Incentive (PLI) scheme, have been pivotal. Originally launched in March 2020, the PLI scheme now encompasses 14 sectors with an outlay of ₹1.9 trillion ($23 billion). Its primary goal is to attract investments, reduce import dependency, and stimulate local production. Success stories are already emerging, especially in mobile manufacturing, where over 97% of smartphones sold in India are now domestically produced.
