India emerges alternative supplier of raw materials to global markets
India is keen to increase share of manufacturing in GDP to 25% from the current 17%, Hardeep Singh Puri, Minister of Petroleum & Natural Gas, has informed an annual convention on 29 Sept 2023.
“Global supply chains are realigning. India is emerging as an alternative supply source given its raw materials, low labour costs, growing manufacturing knowhow, and entrepreneurial ability,” he underlined at the 118th Annual Convention of PHD Chamber of Commerce and Industry (PHDCCI).
India is ready and keen to increase the share of manufacturing to 25% by 2025, Puri said, adding that currently the 17% of manufacturing share in GDP involves over 27.3 million workers.
The minister said that Economic reforms and policies such as GST, IBC, asset monetization, labour law reforms, PLI, National Infrastructure Pipeline, and Gati Shakti mission for multimodal connectivity, have fixed many structural deficits.
Referring to the country’s strong industrial base, he highlighted that India is second-largest producer of steel, second-largest producer of cement and second-largest producer of coal.
Talking about the infrastructure, he pointed out that the country has second-largest built environment, fourth-largest railway network and second-largest road network.
The Minister noted that India is largest producer of two-wheelers and fourth-largest producer of four-wheelers.
Further, the Performance-linked Incentives (PLI) scheme has revolutionised manufacturing in 14 strategic sectors.
He said that there has been an increase of 76% in FDI in manufacturing sector due to PLI schemes.
Over the next five years, the PLI schemes are expected to create 60 lakh additional jobs.
Speaking about the transformational impact of PLI, the Minister said that there was a 20% value addition in mobiles manufacturing within a period of 3 years, and a 139% increase in exports of smartphones.
During the event, Puri also spoke about the transition witnessed by energy sector in recent years. He said that India is simultaneously pursuing both traditional fuel exploration and energy transition.
The minister said that India aims to increase its net geographic area under exploration from 8% (0.25 million sq. kms.) to 15% (0.5 million sq. kms.) by 2025.
India is a global exporter of petroleum products, and boasts the fourth-largest refining capacity globally, he added.
Referring to the significant milestones achieved in biofuel revolution, he noted that the ethanol blending has increased to 11% in 2023 from 1.53% in 2013-14.
He said that India has also launched the National Green Hydrogen Mission with an allocation of Rs.19,744 crores to develop a green hydrogen ecosystem.
Talking about India’s journey towards green energy transition, he said that the Government is supporting electric vehicles through PLI, and alternative fuel stations will be established at 22,000 retail outlets by May 2024. Fiinews.com
