{"id":45740,"date":"2025-06-19T20:37:12","date_gmt":"2025-06-19T15:07:12","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=45740"},"modified":"2025-06-20T11:25:15","modified_gmt":"2025-06-20T05:55:15","slug":"scaling-balancing-manufacturing-sectors-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/19-06-2025\/scaling-balancing-manufacturing-sectors-india","title":{"rendered":"Scaling &amp; Balancing Manufacturing Sectors in India"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Apple\u2019s evolving supply chain strategy is reshaping the <strong>global manufacturing landscape<\/strong>\u2014and India is emerging as a key beneficiary.\n<ul class=\"wp-block-list\">\n<li>As of 2025, India now produces 18% of the world\u2019s iPhones, up from just 1% a few years ago, however, China still accounts for over 75% of global iPhone production.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><u><a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/17-05-2025\/manufacturing-mission-need-of-right-policy-intervention\"><strong>Manufacturing in India<\/strong><\/a><\/u><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It encompasses industries engaged in the <strong>production, processing, and assembly of goods<\/strong>, contributing significantly to the country&#8217;s economic growth and employment.<\/li>\n\n\n\n<li>It includes textiles, electronics, automobiles, pharmaceuticals, chemicals, and renewable energy components.<\/li>\n\n\n\n<li><strong>Vision: <\/strong>India aims to increase manufacturing\u2019s share of GDP from the <strong>current 17% to 25% by 2047,<\/strong> as part of its Viksit Bharat vision.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why is India Far Behind Than China in Manufacturing Sector?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Scale and Ecosystem Depth:<\/strong> China has spent decades building a <strong>deep, vertically integrated<\/strong> manufacturing ecosystem, especially in <strong>electronics, machinery, and renewable energy<\/strong>.\n<ul class=\"wp-block-list\">\n<li>However, <strong>India is still developing<\/strong> its industrial clusters and supply chain networks, which limits scalability and efficiency.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure and Logistics: <\/strong>It enables rapid production and delivery.\n<ul class=\"wp-block-list\">\n<li>However, India has improved but logistics costs remain high, and infrastructure gaps persist, especially in hinterland regions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Investment and Policy Continuity:<\/strong> China attracted massive FDI by offering predictable policies, tax incentives, and streamlined approvals.\n<ul class=\"wp-block-list\">\n<li>India\u2019s regulatory environment has improved, but bureaucratic delays and policy shifts still deter some investors.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Skilled Workforce and Productivity:<\/strong> China trained millions of workers in precision manufacturing.\n<ul class=\"wp-block-list\">\n<li>India has a large labor force, but <strong>skill mismatches and lower productivity<\/strong> levels hinder high-tech manufacturing growth.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>China\u2019s Strategic Industrial Policy:<\/strong> China\u2019s <strong>Made in China 2025<\/strong> plan aggressively supports high-tech sectors through subsidies, R&amp;D funding, and export incentives.\n<ul class=\"wp-block-list\">\n<li>India is responding with PLI schemes and quality control orders, but matching China\u2019s long-term industrial strategy remains a challenge.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>China\u2019s Dual Circulation Strategy:<\/strong> It emphasizes self-reliance in critical tech and a strong domestic supply chain base.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Strategies and Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expansion of PLI Schemes &amp; Global Supply Chain Integration:<\/strong> The government has rolled out PLI schemes across 14 sunrise sectors, including semiconductors, medical devices, and renewable energy components, to boost domestic production and exports.<\/li>\n\n\n\n<li><strong>Omnibus Technical Regulation (OTR)-2024:<\/strong> It consolidates safety and quality standards across over 400 products, aligning Indian manufacturing with global benchmarks.<\/li>\n\n\n\n<li><strong>Quality Control Orders (QCOs):<\/strong> The <strong>Bureau of Indian Standards (BIS)<\/strong> has ramped up QCOs to ensure that both domestic and imported goods meet high-quality standards, protecting consumers and local industries.<\/li>\n\n\n\n<li><strong>Infrastructure and Logistics:<\/strong> Initiatives like <strong>Gati Shakti and the National Logistics Policy<\/strong> aim to reduce logistics costs and improve supply chain efficiency\u2014critical for scaling manufacturing.<\/li>\n\n\n\n<li><strong>Skill Development and Employment:<\/strong> With over 6 crore people employed in manufacturing as of 2020, the sector is a major job creator.\n<ul class=\"wp-block-list\">\n<li>The government is investing in vocational training to meet the <strong>demands of Industry 4.0.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Manufacturing Mission:<\/strong> It was announced as part of the <strong>Union Budget 2025-26<\/strong> to strengthen India&#8217;s manufacturing sector<strong>, <\/strong>covering <strong>small, medium and large industries,<\/strong> emphasizing:\n<ul class=\"wp-block-list\">\n<li>Ease and cost of doing business<\/li>\n\n\n\n<li>Future-ready workforce development<\/li>\n\n\n\n<li>Revitalization of MSMEs<\/li>\n\n\n\n<li>Access to cutting-edge technology<\/li>\n\n\n\n<li>Production of globally competitive quality products.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure and Logistics Development:<\/strong> The government has invested in <strong>industrial corridors, smart cities, and logistics improvements<\/strong> to enhance manufacturing efficiency.\n<ul class=\"wp-block-list\">\n<li>The <strong>National Infrastructure Pipeline (NIP) and National Monetization Pipeline (NMP)<\/strong> aim to modernize industrial infrastructure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>FDI and Trade Policy Reforms:<\/strong> Over the last decade, total FDI inflows amounted to $709.84 billion, accounting for <strong>68.69% of the overall FDI<\/strong> inflow in the past 24 years.\n<ul class=\"wp-block-list\">\n<li>Policy measures such as GST implementation, corporate tax reductions, and streamlined regulatory processes have improved the business environment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Focus on Clean-Tech Manufacturing:<\/strong> India is scaling up clean-tech manufacturing, focusing on solar PV cells, EV batteries, wind-energy components, and hydrogen technology.\n<ul class=\"wp-block-list\">\n<li>These efforts align with India&#8217;s climate goals and aim to reduce import dependence.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Analyze how India\u2019s manufacturing strategy is evolving in response to China\u2019s industrial dominance. What key lessons can India learn from China&#8217;s experience in the manufacturing sector?<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.business-standard.com\/opinion\/columns\/scaling-manufacturing-power-apple-in-china-key-lessons-for-india-125061601284_1.html\" rel=\"nofollow noopener\" target=\"_blank\">Source: BS<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/06\/UPSC-Editorial-Analysis-19-June-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Apple\u2019s evolving supply chain strategy is reshaping the global manufacturing landscape\u2014and India is emerging as a key beneficiary.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-45740","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/45740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=45740"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/45740\/revisions"}],"predecessor-version":[{"id":45775,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/45740\/revisions\/45775"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=45740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=45740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=45740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}