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17
January 2019
 |
India (The
Total Investment & Insurance Solutions)
Biotechnology, electric mobility, unmanned
aerial vehicles and bulk drugs are among the eight emerging sectors that will
contribute $170 billion to India’s manufacturing gross value added by 2025- 26,
a working group of the Department of Industrial Policy and Promotion (DIPP) has
said.
Medical devices, robotics & automation
equipment, advanced materials, and chemicals are the other emerging sectors
that the group has identified to play a significant role in manufacturing.
“These sectors have exponential growth potential which need to be explored.
Detailed assessment of the potential of these sectors should be taken up and
actionable roadmaps drawn up to harness the potential,” said the working group
on making India a $5 trillion economy by 2025 in its report.
Focus
on emerging sectors is part of the three pronged strategy suggested by the
group to achieve $1 trillion from manufacturing. Focus on existing high impact
sectors and medium, small and micro enterprises (MSME) are the other two
pillars. Another $1 trillion from is expected to come from agriculture and
allied activities while contribution from the services NSE 0.32 % sector is
pegged at $3 trillion. The report has suggested an e-commerce policy and
regulatory framework to strengthen the country’s logistics sector and using
e-commerce to facilitate access to larger markets both domestic and
international.
It said in the defence sector, there is a
need to identify key components and systems and encourage global leaders to set
up manufacturing base in India by offering limited period incentives; and
ensure incentives result in technology/process transfer. "Where
applicable, leverage government purchases (Offset Policy), particularly for
technology transfer; and ensure high-quality anchor investors capable of
spurring growth of associated suppliers (including MSMEs) and offer limited
period incentives to anchors, if required," it said.
To
boost electronics manufacturing, it said the government should consider
offering additional fiscal incentives such as a limited-period tax holiday to
players investing more than an identified threshold of investment. The report
suggested measures to boost manufacturing in other areas including aeronautical,
space, garments, organic and ayurvedic products. The Total Investment & Insurance Solutions
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