World turning inward, India must strengthen manufacturing base: PM Modi

Prime Minister Narendra Modi on Friday underscored the need for India to build a robust manufacturing ecosystem, observing that the world is increasingly moving away from globalisation. His remarks come at a time when global supply chains are being reshaped by geopolitical tensions and calls for self-reliance are growing louder across major economies.

Addressing a gathering, the Prime Minister emphasised that a strong manufacturing sector is essential for India to become self-reliant and to secure its place in the global economy. He noted that the era of unfettered globalisation, which once allowed countries to rely heavily on imports for critical goods, is giving way to a more cautious approach where nations are prioritising domestic production and supply chain resilience.

Modi’s statement aligns with India’s long-pursued ‘Make in India’ initiative, launched in 2014, which seeks to transform the country into a global manufacturing hub. The government has introduced production-linked incentives (PLI) across sectors such as electronics, automobiles, pharmaceuticals, and textiles to boost domestic manufacturing and attract foreign investment.

Experts point out that the ongoing shift in global trade dynamics, partly triggered by the COVID-19 pandemic and subsequent disruptions, has made countries rethink their over-reliance on single sourcing destinations, particularly China. India, with its large market and improving infrastructure, is positioning itself as a viable alternative.

However, economists caution that India still faces significant hurdles, including complex land acquisition norms, regulatory bottlenecks, and skill gaps, which need to be addressed to fully realise the manufacturing vision. The government has taken steps to simplify labour codes and improve ease of doing business, but implementation remains a challenge at the ground level.

The Prime Minister’s remarks also come in the backdrop of rising protectionist measures globally, including tariffs and export controls, which have prompted many countries to build domestic capacities in strategic sectors such as semiconductors, green energy, and defence manufacturing.

Analysts note that India’s focus on manufacturing is not just an economic strategy but also a geopolitical one. By reducing import dependence and enhancing export capabilities, India aims to strengthen its position in global value chains and reduce vulnerability to external shocks.

While the prime minister did not specify any new policy measures in his address, his emphasis on manufacturing is likely to set the tone for future government initiatives. Industry bodies have welcomed the statement, calling for faster approvals and incentives to boost local production.

Observers say the path ahead requires a concerted effort from both the central and state governments to create a conducive environment for manufacturers. Investments in infrastructure, technology adoption, and worker training will be key to making India a competitive manufacturing destination.