Industry should leverage new technologies, policies and practices to make India a manufacturing powerhouse: Labour Secretary

Industry must provide long-term vision and collaborate with government to make India a global manufacturing hub: DPIIT Secretary

“By 2030, India’s working age-population will constitute about 65 per cent of our total population, positioning India as a key player in addressing global labour shortages”,  said Ms Sumita Dawra, Secretary, Ministry of Labour & Employment, Government of India speaking at the Global Economic Policy Forum 2024 organised by the Confederation of Indian Industry (CII) with the theme ‘Decadal Priorities for the Global Economy’ here at New Delhi today. India is posed to be a major contributor to the global workforce, with about 24 per cent of incremental workforce in the world expected to come from India in the next 10 years, she added.

Highlighting the ongoing efforts to formalize India’s labour markets, Ms Dawra noted that since 2017, over 7 crore Indians have joined EPFO and government is undertaking initiatives to enhance employability and skill sets of the workforce.

Underscoring the strength of India’s manufacturing sector, she remarked that initiatives such as Make in India and Production Linked Incentive (PLI) scheme have helped India emerge as a global leader in sectors like automobiles, pharmaceuticals, textiles, renewable energy, electronics, engineering goods, among others.

Urging the industry to leverage the Employment Linked Incentive (ELI) Scheme, she highlighted that ELI is designed to incentivize the hiring of additional workers, particularly in the manufacturing sector, by offsetting the cost of employing new workers. The scheme aims to boost labour formalization, enhance the employability of workers, and support job creation in key manufacturing industries, she added.

Ms Dawra also highlighted India’s growing role as a hub for Global Capability Centres (GCCs) that employ millions of Indians in sectors like engineering, technology, and AI, contributing to global innovation while supporting India’s domestic manufacturing capabilities.

Ms Dawra discussed the ongoing labor reforms, particularly the codification of 29 labor laws into four streamlined labor codes that aim to simplify compliance, reduce complexity, and promote ease of doing business.

“India’s manufacturing competence is built on cost efficiency, skilled workforce, and government support. With continued investment in key sectors, we will further enhance our global positioning. The industry should leverage new technologies, policies, and practices to make India a manufacturing powerhouse in the future”, said Ms Dawra.

Shri Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India highlighted several key reforms undertaken by the Government in India to enhance ease of doing business, including Business Reform Action Plan (BRAP), Single Window System, decriminalization efforts, among others. Recognizing the valuable feedback from the private sector, he urged for continued industry collaboration to refine and enhance these efforts.

Shri Bhatia further noted substantial improvement in India’s industrial infrastructure, including development of industrial parks and pointed out the need for optimizing land use to make industrial land more accessible. Reduction in logistic costs and Production Linked Incentive (PLI) scheme have enhanced competitiveness of Indian manufacturing, added Shri Bhatia. He further expressed optimism about growth of startup ecosystem, with new startups emerging in tier-2 and tier-3 cities and stressed the importance of sector-specific intervention to ensure their continued success.

Shri Bhatia noted that clean energy, sustainable infrastructure, integration into global supply chains, data centres, etc. are promising areas for investment and innovation for the private sector. Encouraging industry stakeholders to actively engage in India’s industrial future, he said, “Industry must provide the long-term vision and work together with the government to make India a manufacturing hub that not only serves domestic needs but becomes a key player in global markets.”

11 December 2024

New Delhi