The commerce and industry ministry is working to identify certain key sectors — like capital goods, leather and chemicals — with a view to establish India as a manufacturing hub, according to sources.
Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub, sources said.
“There are 12 champion sectors which can be looked upon. These include modular furniture, toys, food processing like ready-to-eat food, agrochemicals, textiles like man-made fibers, air conditioners, capital goods, pharma, and auto components,” one of the sources said.
Groups and sub-groups have been constituted on the matter by engaging representatives from industry chambers like CII and Assocham.
The core group would identify specific implementable policies based on issues like technological capability, employment potential, and global as well as domestic demand, they added.
Commerce and Industry Minister Piyush Goyal has recently stated that in the post-Covid era, there is going to be a perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade.
He has said that the ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the purpose of the export.
Promoting manufacturing will help in creating more jobs and pushing India’s dwindling exports.
The manufacturing sector contributes about 15 per cent in the country’s economy and the government is aiming to increase it significantly.
The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement, and electricity amid the coronavirus lockdown.
Exports too contracted by a record 34.6 per cent in March on account of the lockdown due to Covid-19 outbreak.