India's manufacturing sector is currently navigating a crucial phase characterized by global trade shifts and rising protectionism. The government's initiatives, such as Make in India and Production-Linked Incentive (PLI) schemes, have laid a strong foundation. Nevertheless, challenges remain in scaling exports, adopting technology, and enhancing research and development (R&D).
The manufacturing landscape has shown resilience, bolstered by policies like Make in India and PLI. Notably, global merchandise exports increased by 6% in 2023, reaching $2.4 trillion. However, geopolitical shifts and protectionist measures present significant hurdles.
India plans to tackle global trade challenges by diversifying trade partnerships, particularly in the context of a "China Plus One" strategy. Strengthening relationships with major partners, such as the US and EU, is also paramount. Additionally, enhancing export-oriented policies with a focus on global value chains will be crucial.
R&D plays a vital role in fostering innovation, product development, and enhancing competitiveness. Currently, India's R&D expenditure is less than 1% of GDP, significantly lower than global standards. There is a pressing need for increased collaboration between academic institutions and industries to boost research efforts.
To prepare for future global trade scenarios, India must invest in sustainable manufacturing practices and align with international standards. This includes enhancing skill development and workforce training to keep pace with technological advances and building strong global trade alliances to effectively navigate uncertainties.
Q1. What is the current situation of India’s manufacturing sector?
Answer: India's manufacturing sector has shown resilience due to supportive initiatives like Make in India and PLI schemes, despite facing challenges from global protectionism.
Q2. What are the key policies supporting manufacturing in India?
Answer: Key policies include Make in India, PLI schemes, digital infrastructure programs, and investment in MSMEs aimed at improving manufacturing efficiency.
Q3. How does India plan to address global trade challenges?
Answer: India aims to diversify trade partnerships, strengthen relations with major economies, and enhance export-oriented policies to tackle global trade challenges effectively.
Q4. What is the role of R&D in manufacturing?
Answer: R&D is crucial for innovation and competitiveness in manufacturing. India's current R&D spending is below 1% of GDP, highlighting the need for increased investment in research collaboration.
Q5. How can India strengthen its manufacturing sector?
Answer: By supporting MSMEs, promoting automation, establishing manufacturing hubs, improving logistics, and enhancing public-private collaboration in R&D efforts.
Question 1: What initiative aims to boost domestic manufacturing in India?
A) Make in India
B) Digital India
C) Skill India
D) Startup India
Correct Answer: A
Question 2: What is the primary goal of the Production-Linked Incentive (PLI) scheme?
A) To reduce imports
B) To provide financial incentives to targeted industries
C) To promote exports
D) To enhance public-private partnerships
Correct Answer: B
Kutos : AI Assistant!
