Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
About the Report
- Published by NITI Aayog’s Frontier Tech Hub with CII and Deloitte collaboration outlining strategic pathway.
- Purpose: chart India’s pathway to advanced manufacturing leadership through technology integration, sectoral focus, institutional reforms.
- Scope: covers 13 high-impact sectors under five clusters; 10-year roadmap (2026-2035) integrating frontier technologies.
Current Manufacturing Status
- Manufacturing contributes 15-17% to GDP; below China (25%), South Korea (27%) East Asian peers.
- Aim: raise to 25% by 2035; generate 100+ million skilled jobs, 6.5% global export share.
- Key sectors: automotive, electronics, textiles, pharmaceuticals, renewable energy central to growth goals.
Potential and Vision
- Top-three global manufacturing hub by 2035 leveraging AI, robotics, digital twins frontier technologies.
- Add $270 billion to GDP by 2035, $1 trillion by 2047 driving high-value industrial growth.
- Generate 100+ million skilled jobs; exports rise from 2% to 6.5% global trade boosting competitiveness.
- Enhance production precision, resilience, sustainability credentials through AI, advanced materials, robotics embedding.
Key Challenges
- R&D spending below 1% GDP; India lags in innovation capacity, patents, high-tech product development.
- Fragmented supply chains: MSMEs face weak global value chain integration due to limited digital connectivity.
- Skilling deficit: large workforce untrained in automation, AI tools slowing advanced manufacturing adoption significantly.
- Infrastructure gaps: absence of smart industrial parks, 5G networks, reliable energy constrains global-scale production.
- Regulatory lag: lack of unified data governance, technology standards delays industry-wide digitization and interoperability.
Initiatives
- National Manufacturing Mission: coordinates frontier tech adoption, R&D funding, policy convergence across priority sectors.
- PLI Schemes: performance-linked incentives for electronics, semiconductors sunrise sectors boosting domestic manufacturing capacity.
- Industrial Corridors: Gati Shakti, PM MITRA enhance logistics, connectivity, cluster-based competitiveness nationwide.
- Make in India, Digital India: encourage self-reliant production, integrate digital tools into manufacturing processes.
- Skill India, AICTE: drive industry-linked training, promote modular skilling aligned with Industry 4.0 needs.
Key Recommendations
- Global Frontier Technology Institute (GFTI): Centre of Excellence for advanced R&D, testing, certification promoting innovation.
- 20 Plug & Play Frontier Industrial Parks: tech-enabled zones with ready infrastructure, 5G, simulation facilities.
- Technology Access Platforms: shared digital infrastructure helping MSMEs access AI, robotics, automation tools affordably.
- Champion-Based Model: large industries mentor MSMEs through cluster-led innovation, technology demonstration programs.
- Servicification of Manufacturing: shift to integrated service solutions powered by AI, IoT for value creation.
- National Digital Backbone: real-time industrial IoT network for seamless data exchange, predictive efficiency in production.
- State-specific Skilling Missions: robotics in Tamil Nadu, green mobility in Maharashtra localizing expertise regionally.
Q- What is the significance of Production Linked Incentive (PLI) schemes in India’s advanced manufacturing roadmap? Discuss with reference to electronics and semiconductor sectors. (10 marks, 150 words)