New Delhi: The government’s Production Linked Incentive (PLI) schemes and a ₹1 lakh crore innovation fund announced in the Union Budget are expected to drive growth in India’s manufacturing and startup sectors, officials and industry leaders said at the FICCI AGM 2024.
Kamran Rizvi, Secretary, Ministry of Heavy Industries, said that the shift towards electrification is reshaping industries, with the ministry focusing on cost-effective manufacturing and domestic value addition. “India’s robust industrial base positions it for sustainable growth,” Rizvi said, emphasizing the growing role of electric vehicles (EVs) in the economy.
Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), outlined the government’s efforts to facilitate industrial growth. Initiatives like the National Industrial Corridor Program and ease of doing business reforms have enabled the development of smart industrial townships and sector-specific parks in Tier 2 and Tier 3 cities. “FDI liberalization and these reforms are contributing significantly to India’s industrialization,” he said.
The startup ecosystem is also witnessing rapid growth, supported by incubators and an emphasis on deep-tech innovation. “The ₹1 lakh crore innovation fund presents an opportunity for startups to align with industry demands,” he added.
Anant Goenka, Vice President, FICCI, and Vice Chairman, RPG Group, highlighted private sector alignment with domestic demand. He emphasized the need for sector-specific industrial parks to enhance manufacturing competitiveness, taking cues from SEZ models.
Manish Sharma, Chair of FICCI’s Electronics and White Goods Manufacturing Committee, projected significant demand growth in the next two to three years, driven by localization, value addition, and product customization. “The PLI schemes are key to accelerating private sector investments,” he noted, while advocating for supply chain corridors to complement industrial corridors.
Sulajja Firodia Motwani, Chair of FICCI’s Electric Vehicles Committee, highlighted the growing share of EVs in the automotive supply chain. She called for a revised tariff structure, graded PLI 2.0, and increased R&D to position India as a major global player in EV production and consumption.
