India will be the new manufacturing hub of the world

These days, various reports by global economic and financial organizations are saying that India is now moving towards becoming the new manufacturing hub of the world. Not only this, recently on August 3, China's government newspaper Global Times has released the list of top 10 countries in the world in manufacturing output, in which it has been said that China ranks first in the world in manufacturing output. Also, in the manufacturing sector, India ranks fifth in the world with a manufacturing value of $ 456 billion and India is moving towards becoming the new world manufacturing hub.

It is worth mentioning that on July 30, Prime Minister Narendra Modi, while addressing the conference of the Confederation of Indian Industry, said that the way India's manufacturing sector is being rapidly taken forward with facilities, investors from all over the world are eager to come to India. In such a situation, the industries of the country should also not lag behind in taking advantage of this golden opportunity. He said that at present India's economy is the fifth largest economy in the world. Now to make it the third largest economy and to take India forward on the path of becoming a developed country, industrialists will have to play an important role.

It is worth noting that in the reports of global economic and financial organizations being published these days, it is being said that the budget for the year 2024-25 presented by Finance Minister Nirmala Sitharaman on July 23 is a budget to enrich the industries. Through this budget, unprecedented provisions have been made to reduce imports and increase exports while strengthening the manufacturing sector, the scenario of India becoming a new manufacturing hub is emerging.

It is important that the manufacturing sector contributes significantly to both exports and employment generation from the country and special care has been taken in this budget for its promotion. Through this budget, focus has been placed on industrial clusters. Industrial clusters are those where all the facilities related to the manufacture of an item are available at one place, manufacturing becomes easy and its cost also reduces. In the budget, the Finance Minister has announced the construction of plug and play industrial parks in 100 cities of the country. Industrial parks with plug and play facilities will be developed with the mutual participation of the Center, State and private sector. The special thing is that the entrepreneur has to go to such an industrial park and just start production. The plug and play model is mainly introduced to attract new exporters and entrepreneurs towards manufacturing. It is worth mentioning that in order to increase exports, manufacturing has been going on on the plug and play model in China and other countries for years and in many places there the entrepreneur does not even need to install a machine. Under the provisions of the new budget, by developing industrial clusters or parks with plug and play facilities in 100 cities, at least 100 types of items can be produced on a large scale. It is also important that all the facilities related to production of one item can be provided in an industrial park. It is worth noting that in the budget for the year 2024-25, the Finance Minister has empowered Micro, Small and Medium Enterprises (MSMEs) in view of increasing exports. It is worth noting that MSMEs, which contribute more than 40 percent to both the country's GDP and exports, face the most difficulty in taking loans. In the new budget, the government has tried to overcome this problem.

In the new budget, a credit guarantee scheme has been launched for the purchase of machinery. Under this scheme, a self-financing guarantee fund will be created under which loans up to Rs 100 crore will be guaranteed. Under the provisions of the new budget, MSMEs taking loans will have to pay only upfront guarantee fees. The special thing is that loans will also be given to MSMEs on the basis of digital transactions. According to the budget announcement, the bank will give loans to MSMEs on the basis of evaluation of digital transactions. With this system, entrepreneurs will be able to get loans easily to expand their business. It has been found that due to business problems, the business of MSMEs often gets into trouble and they are unable to repay the bank loan. By not being able to repay more than one installment, they gradually come to the verge of being declared NPA. To save MSMEs from this problem, a separate fund has been announced. Certainly, under the provisions of the new budget, MSMEs can benefit greatly if the quality of their products increases. Keeping this in mind, financial assistance will be given to open 50 units for quality testing in the MSME sector related to food items.

It is also important that under the new budget, the total allocation to the Ministry of Electronics and Information Technology has been increased from Rs 9509 crore last year to Rs 21,085 crore for two important projects under the Make in India initiatives and to improve manufacturing. There is unprecedented budget provision for the much-hyped Production Linked Incentive (PLI) schemes. A revised program for the development of semiconductors and displays along with the development of toy, footwear, leather, industries has also been encouraged. Under this, companies are being given the facility to set up silicon and compound fabrication (fab), display fab, assembly, testing, marking and packaging (ATMP), outsourced semiconductor assembly and test and design in the country.

BUY PRATIYOGITA NIRDESHIKA – Study Material-
2023 yearbook for 2024 exams E-Book Price only -50 Rs

BUY PRATIYOGITA NIRDESHIKA – Study Material -
CUET 2023 (Common University Entrance Test - U.G) E-Book Price only -500 Rs

BUY PRATIYOGITA NIRDESHIKA – Study Material-
IBPS PO/SBI PO/RBI Grade-B Phase 1 E-Book Price only -500 Rs