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New Delhi: India is looking to triple the country’s exports by 2035 by boosting the manufacturing sector through structural changes instead of spending a huge amount of money. Details of the new structure are likely to be announced by Finance Minister Nirmala Sitharaman in her upcoming budget presentation on February 1.

Government prioritised manufacturing in 15 sectors

Since coming to power in 2014, this is the third such attempt by the government led by Prime Minister Narendra Modi. The government has prioritised manufacturing in 15 sectors, including metals, semiconductors, labour-intensive leather industry, among others, Reuters reported.

“In past years, several government initiatives to boost manufacturing growth have led to modest, incremental progress at best. What is needed is a bold, focused and cohesive strategy to drive transformative change,” the agency quoted an official as saying.

According to the report, the government will look to spend nearly $1 billion to build 30 manufacturing hubs. It will also provide grants of $218 million for areas like energy storage and chips, the agency quoted officials as saying.
The officials observed that this time the funding has been modest. This is because the focus remains on easing regulatory and compliance burdens, instead of bringing out new subsidies. Funding for industries will be decided on case basis with recommendations by a government panel to different departments of the government.

Govt announced a new structure last year

The government had announced the new structure called ‘National Manufacturing Mission’, which was announced in last year’s budget. While the budget was not disclosed, the details could be announced this year on February 1.

The panel will look to enhance regulatory clearance in a faster way, approving land and cheaper financing for large projects. The panel will be chaired by a minister and will consist of bureaucrats, the report added.