India Plans Manufacturing Push to Triple Exports by 2035

• India targets $1.3T exports by 2035 via manufacturing push.
• Focus on 15 sectors incl. semiconductors, metals, leather.
• Reforms prioritize deregulation, hubs over heavy subsidies.

The government of India is planning to drastically change the manufacturing landscape in the country to triple merchandise exports to around $1.3 trillion by 2035. It is looking at 15 sectors for the transformation and the trade problems such as high tariffs and disruptions in the supply chain. Rather than focusing on big subsidies, the initiative looks to emphasis on redeployment to the existing markets, deregulation, infrastructure development, and regulatory streamlining to increase competitiveness and integrate India further into the global value chains.

The 15 key sectors include high, end semiconductors, advanced metals, and labor, intensive industries such as leather manufacturing. Other sectors are likely to be electronics, pharmaceuticals, textiles, and engineering goods, although the exact list varies between the different reports. The strategy is intended to fix the problems caused by the past shortfalls like the Make in India campaign (2014) and $23 billion Production, Linked Incentive (PLI) scheme (2020) which still have not managed to significantly increase manufacturing's GDP share to the 25% target.

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A minister at cabinet level leading the panel along with the Cabinet Secretary will be the helm of reforms on which the parties have applauded the suggestions incorporated: fast, tracking of various kinds of approvals, land acquisition, cheap financing, and the assurance of low, cost power. Around 30 manufacturing units will be set up in places having state, of, the, art infrastructure, geographic advantages, and ports close enough for carrying out efficient logistics and exports.

The government is providing a sum of 100 billion (around $1.2 billion) for whether hub infrastructure and $218 million in the form of grants for high, end sectors such as semiconductor fabrication and energy storage. The move aims at bringing in private investments that will result in the creation of jobs and the development of a long, term capacity without the heavy use of the government coffers.

The strategists call it "a bold, focused, and unified strategy" to take India's manufacturing to the world stage, guard against the risk of tariffs, and encourage the growth of export in the sustainable way. The plan, if it goes through, can reform the economy over a decade thereby positioning India as a major player in the sector of the production of high, value as well as labor, intensive goods."