India has unique opportunity to become global manufacturing hub this decade: Economic Survey

New Delhi: India has a unique opportunity to become a global manufacturing hub this decade as foreign companies are adapting their manufacturing and supply chain strategies to build resilience, the Economic Survey said on Tuesday.

The risk of supply chain shocks has never been more palpable than today, following compounding crises from the US-China trade war, the Covid-19 pandemic, and the war in Ukraine, it said.

"In this fast-evolving context, as global companies adapt their manufacturing and supply chain strategies to build resilience, India has a unique opportunity to become a global manufacturing hub this decade," it said.

At present, India's manufacturing sector accounts for about 15-16 per cent of the country's GDP and there is an aim to increase it to 25 per cent in the coming years.

The survey said that the three primary assets to capitalise on this unique opportunity are the potential for significant domestic demand, measures by the government to encourage manufacturing, and a distinct demographic edge.

To further enhance India's integration in the global value chain, 'Make in India 2.0' is now focusing on 27 sectors, which include 15 manufacturing and 12 service sectors and that include furniture, agri produce, textile, robotics, televisions and aluminium.

With an aim to promote Make-in-India programme, the government has launched the PLI (production linked incentive) scheme for 14 sectors.