KNOWLEDGE-BASED ECONOMY SUSTAINED BY MANUFACTURING

Promoting and investing in R&D and technology is the key for boosting local hi-tech manufacturing and to ensure sustainable economic growth, feels KS Rao, Group CCO, STL

- Aanchal Ghatak

Countries like China and Israel have developed a long-term plan, in consultation with the industry, to promote domestic manufacturing. The Government of India has launched the PLI and some other schemes to promote manufacturing. How should the government promote some champion sectors through a comprehensive policy?

Promoting local manufacturing is critical for sustainable economic growth as it promotes innovation, boosts productivity, maintains favorable trade, and increases employment. Additionally, the growth of domestic manufacturing propels the progress of the domestic services industry, as domestic manufacturing, with its growing maturity, consumes more services and rely more heavily on services to operate.

Considering a knowledge-based economy cannot be sustained in the long run unless it is adequately supported by a growing manufacturing economy, the government has taken various policy initiatives, including PLI, SPECS, etc to boost domestic manufacturing capabilities. However, a comprehensive framework for 'Make in India' rather than isolated initiatives would yield much better outcomes and impacts.