Economists Advocate New Manufacturing Policy in Pre-Budget Meet
In a pre-Budget consultation chaired by Finance Minister Nirmala Sitharaman, economists called for the introduction of a new manufacturing policy to stimulate economic growth.
The meeting, held as part of preparations for the Union Budget 2024-25, focused on strategies to boost private investments and revitalize India’s industrial sector.
Push for Manufacturing and Investment Growth
The experts emphasized the need for a revamped manufacturing policy to position India as a global production hub. Highlighting the potential of the sector to generate jobs and drive exports, they recommended targeted interventions to attract private investments and strengthen the country’s industrial ecosystem.
A robust manufacturing policy, they argued, would complement government initiatives like Make in India and the Production Linked Incentive (PLI) schemes, ensuring sustained growth across key industries. They also stressed the importance of improving ease of doing business and addressing structural challenges to draw foreign and domestic investments.
Addressing Core Economic Challenges
During the meeting, economists urged the government to prioritize reforms aimed at increasing private sector participation in critical areas. Discussions included steps to simplify compliance requirements, reduce bottlenecks in approvals, and enhance infrastructure to support industrial growth. They also highlighted the need for fiscal measures to improve consumption and support small and medium-sized enterprises (SMEs).
The consultations touched upon enhancing the manufacturing sector’s resilience to global shocks, promoting innovation, and leveraging emerging technologies such as artificial intelligence, robotics, and green energy solutions.
Pre-Budget Focus Areas
The recommendations are expected to guide the formulation of the Union Budget 2024-25, which will be unveiled in February. As India aims to sustain its growth trajectory amidst global uncertainties, the government’s focus will likely balance fiscal discipline with growth-friendly policies.
With economists advocating a forward-looking manufacturing policy and private investment boost, the upcoming Budget is set to play a crucial role in driving India’s industrial revival and positioning the nation as a competitive global player.
