Prime Minister Modi Emphasizes Domestic Value Addition in Manufacturing
Prime Minister Narendra Modi has expressed a firm stance against the longstanding practice of exporting raw materials from India only to import them back as finished products. He advocates for enhancing value addition within the country to bolster economic growth and self-reliance.
Addressing a gathering of industry leaders and policymakers, Modi highlighted the economic drawbacks of this export-import cycle, emphasizing that it leads to missed opportunities for job creation and wealth generation within India. He urged industries to invest in domestic manufacturing capabilities, thereby retaining the value chain within national borders.
The Prime Minister’s call aligns with the government’s broader ‘Make in India’ initiative, which aims to transform India into a global manufacturing hub. By focusing on in-country value addition, the initiative seeks to attract investment, foster innovation, and build best-in-class manufacturing infrastructure.
Modi also pointed out that reliance on exporting raw materials and importing finished goods makes the country vulnerable to global market fluctuations and supply chain disruptions. He emphasized that developing domestic capabilities in processing and manufacturing would not only strengthen the economy but also enhance national security by reducing dependence on foreign entities.
Industry experts have welcomed the Prime Minister’s remarks, noting that increased value addition within India could lead to significant advancements in technology, skill development, and employment opportunities. They suggest that sectors such as electronics, textiles, and pharmaceuticals could particularly benefit from enhanced domestic processing and manufacturing.
The government is expected to introduce supportive policies and incentives to encourage businesses to invest in value addition processes domestically. These measures may include tax benefits, subsidies, and streamlined regulatory procedures to facilitate ease of doing business in India.
Prime Minister Modi’s emphasis on value addition reflects a strategic vision to elevate India’s position in the global economic landscape. By retaining more of the value chain within the country, India aims to achieve sustainable economic development and reduce its trade deficits.
