“Global supply chains are realigning. India is emerging as an alternative supply source given its raw materials, low labour costs, growing manufacturing knowhow, and entrepreneurial ability”, said Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs at an event today. He was addressing the 118th Annual Convention of PHD Chamber of Commerce and Industry (PHDCCI).
Speaking about India’s manufacturing aspirations, Hardeep Singh Puri said that the manufacturing sector currently comprises 17% of the nation’s GDP and over 27.3 million workers. He said that the Prime Minister’s clarion call for ‘Make in India, Make for the World’ at the World Economic Forum this year was a signal that India is ready and keen to increase the share of manufacturing to 25% by 2025.
The minister said that Economic reforms and policies such as GST, IBC, asset monetization, labour law reforms, PLI, National Infrastructure Pipeline, and Gati Shakti mission for multimodal connectivity, have fixed many structural deficits.
Referring to the strong industrial base of India, the Union Minister highlighted that India is second-largest producer of steel; second-largest producer of cement; and second-largest producer of coal. Talking about the infrastructure, the country has second-largest construction of built environment; fourth-largest railway network; and second-largest road network. Noting about the automobile industry the Minister said that India is largest producer of two-wheelers and fourth-largest producer of four-wheelers.
Hardeep Singh Puri said that Performance-linked Incentives (PLI) scheme has revolutionised manufacturing in 14 strategic sectors. He said that there has been an increase of 76% in FDI in manufacturing sector due to PLI schemes. Over the next five years, the PLI schemes are expected to create 60 lakh additional jobs.
Speaking about the transformational impact of PLI, the Minister said that there was a 20% value addition in mobiles manufacturing within a period of 3 years, and a 139% increase in exports of smartphones.
During the event, the Minister also spoke about the transition witnessed by energy sector in recent years. He said that India is simultaneously pursuing both traditional fuel exploration and energy transition.
The minister said that India aims to increase its net geographic area under exploration from 8% (0.25 million sq. kms.) to 15% (0.5 million sq. kms.) by 2025.
India is a global exporter of petroleum products, and boasts the fourth-largest refining capacity globally, he added.
Referring to the significant milestones achieved in biofuel revolution, he noted that the ethanol blending that has increased from 1.53% in 2013-14 to 11% in 2023.
He said that India has also launched the National Green Hydrogen Mission with an allocation of Rs. 19,744 crores to develop a green hydrogen ecosystem.
Talking about India’s journey towards green energy transition, he said that India is supporting electric vehicles through PLI, and alternative fuel stations will be established at 22,000 retail outlets by May 2024.
