Medical devices, robotics & automation equipment, advanced materials, and chemicals are the other emerging sectors that the group has identified to play a significant role in manufacturing.
“These sectors have exponential growth potential which need to be explored. Detailed assessment of the potential of these sectors should be taken up and actionable roadmaps drawn up to harness the potential,” said the working group on making India a $5 trillion economy by 2025 in its report.
Focus on emerging sectors is part of the three pronged strategy suggested by the group to achieve $1 trillion from manufacturing. Focus on existing high impact sectors and medium, small and micro enterprises (MSME) are the other two pillars.
Another $1 trillion from is expected to come from agriculture and allied activities while contribution from the services sector is pegged at $3 trillion.
The report has suggested an e-commerce policy and regulatory framework to strengthen the country’s logistics sector and using e-commerce to facilitate access to larger markets both domestic and international.
It said in the defence sector, there is a need to identify key components and systems and encourage global leaders to set up manufacturing base in India by offering limited period incentives; and ensure incentives result in technology/process transfer.
“Where applicable, leverage government purchases (Offset Policy), particularly for technology transfer; and ensure high-quality anchor investors capable of spurring growth of associated suppliers (including MSMEs) and offer limited period incentives to anchors, if required,” it said.
To boost electronics manufacturing, it said the government should consider offering additional fiscal incentives such as a limited-period tax holiday to players investing more than an identified threshold of investment. The report suggested measures to boost manufacturing in other areas including aeronautical, space, garments, organic and ayurvedic products.
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