Budget wishlist: Here are the key challenges in manufacturing sector

Current sector snapshot

The India Manufacturing Purchasing Manager’s Index (PMI) for December indicated an improvement in the manufacturing sector for the sixth consecutive month. International demand for Indian goods also improved. The industry is facing disruption from factors like new tech-based entrants, decoupling of the global supply chain, among others. Despite the pandemic, there is a sense of optimism about the prospects of the Indian manufacturing sector. The industry is expecting the Centre to intervene towards tariff rationalisation to improve the local supply chain, develop key downstream operations, and incentivise investments in high-tech production.

Key challenges
 

Sustainable demand creation: Government spending and