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Committee Under National Manufacturing Mission
Context:
A committee is set to be established under the National Manufacturing Mission to address various challenges in the manufacturing sector. The focus will be on cutting the cost of doing business, preparing a future-ready workforce, enhancing technology availability, and promoting Make in India.
National Manufacturing Mission (NMM)
- Overview
- Announced in the Union Budget 2025-26 under the Make in India initiative.
- Covers small, medium, and large industries.
- Aims to boost domestic manufacturing, reduce import dependence, and create jobs.
- Clean Tech Manufacturing
- Development of solar PV cells, EV batteries, motors & controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
- Focus on domestic value addition and supply chain development.
- Labour-Intensive Sectors
- Footwear & Leather Industry – New Focus Product Scheme to create 22 lakh jobs, generate ₹4 lakh crore turnover, and boost exports to ₹1.1 lakh crore.
- Toy Industry – National Action Plan for Toys to position India as a global manufacturing hub.
- Infrastructure & Industrial Clusters
- Strengthening supply chains and developing industrial clusters for key sectors.
- Establishment of National Institute of Food Technology in Bihar to enhance food processing and increase farmer incomes.
Key Focus Areas of the Mission
The mission will work on five major aspects:
- Ease and Cost of Doing Business: Identifying bottlenecks affecting business operations and recommending policy changes to enhance competitiveness.
- Future-Ready Workforce for In-Demand Jobs: Addressing skill gaps and upgrading industrial training programs through collaboration between industries and educational institutions.
- Vibrant and Dynamic MSME Sector: Strengthening small and medium enterprises through policy support while improving access to credit and modern infrastructure.
- Availability of Technology: Enhancing domestic R&D and technology transfer to reduce dependence on imported technology.
- Quality Products and Global Competitiveness: Encouraging industries to meet international quality standards to expand exports and strengthen India’s position in global supply chains.
Composition of the Committee
The committee will have representation from:
- Central Government Ministries overseeing manufacturing policies.
- State Governments to ensure regional cooperation.
- Private Sector and Industry Leaders to provide sector-specific insights.
- Technology and Research Institutions for innovation support.
- Trade Bodies and MSME Representatives to ensure inclusivity.
Current State of Manufacturing in India
- Contribution to GDP
- The manufacturing sector accounts for 16-17% of India’s GDP.
- The government aims to increase this share through incentives and reforms.
- Industrial Production Trends
- Index of Industrial Production (IIP) growth reached a six-month high of 5.2% in November 2024.
- Driven by festive demand and improved manufacturing activity.
- Major Contributing Sectors
- Basic Metals (14.86%) – Odisha, Jharkhand, Chhattisgarh.
- Coke and Refined Petroleum (14.02%) – Assam, Bihar, Kerala.
- Food Products (12.36%) – Uttar Pradesh, Andhra Pradesh, A&N Islands.
- Production-Linked Incentive (PLI) Scheme
- PLI-backed sectors contributed 58% to total manufacturing output.
- Registered a growth of 24.5%, reflecting strong industrial support.
Need for This Committee
- High Cost of Doing Business
- Need to streamline regulations and reduce logistical inefficiencies.
- Regional Disparities
- Manufacturing is concentrated in a few states (Maharashtra, Gujarat, Tamil Nadu, Karnataka, Uttar Pradesh).
- Need to promote manufacturing hubs in underdeveloped regions.
- Technology Gaps and Workforce Challenges
- Need for skill development and better technology access.
- Preparing industries for Industry 4.0 and automation.
- Boosting Export Competitiveness
- Addressing non-tariff barriers.
- Enhancing supply chain efficiency and product quality.
Potential Impact of the Committee
- Policy Reforms and Cost Reduction
- Improved ease of doing business through streamlined regulations.
- Lower operational costs for industries.
- Employment and Skill Development
- New job opportunities through reskilling and upskilling programs.
- Increased industrial employment, boosting economic growth.
- Strengthened MSME Sector
- Better access to finance and technology for MSMEs.
- More opportunities for domestic and global expansion.
- Increased Foreign and Domestic Investment
- Improved investment climate due to stable policies and incentives.
- Attraction of FDI and joint ventures in high-potential sectors.
