Manufactured goods are ever-shrinking slice of pie, & high exchange rate from surplus in service trade keeps Indian products pricey in export markets, despite low labour costs.
At a FICCI convention, NITI Aayog CEO Amitabh Kant said Rs 2 lakh crore Production-Linked Incentive scheme will make India highly competitive in the global economy.
Report by India Cellular & Electronics Association and Ernst & Young says India can generate $100 bn manufacturing value by 2025, lists ways through which it can be achieved.
The incentives, spread over 5 years, will be provided to sectors like auto, automobile components, textile products, white goods like LED screens, processed food products, among others.
If India fails to action key reforms, its geopolitical leverage will reduce and it will be forced to ally more closely with the US on less favourable terms.
Labour market deregulation has created job opportunities for labourers. For instance, an average textile firm in India has 240 employees; in Bangladesh, about 800.
In a bid to restart manufacturing in the country, and improve the economy, the government will allow some factories to operate under strict conditions.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Now that both IAF and PAF have made formal claims of having shot down the other’s aircraft in the 87-hour war in May, we can ask a larger question: do such numbers really matter?
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