The India story: Progress in manufacturing sector but key challenges remain

The fourth part of the series assesses what it will take to encourage domestic manufacturing, while also being an alternative to China

To boost domestic factory production and capitalise on the global “China Plus One” strategy, which encourages multinational companies to reduce reliance on China, India needs a conducive ecosystem for manufacturing.  However, instead of becoming a hub of production and integrating with the global supply chain, the contribution of manufacturing to the Indian economy has been declining, despite initiatives like the National Manufacturing Policy (NMP) and Make in India.

 

A slow progress, though, is being made in select commodities, such as telecom handsets, in reducing imports and increasing exports.

 

Though the NMP was introduced in 2011 by the United Progressive Alliance