Union Minister Ashwini Vaishnaw Outlines Key Investments Fuelling India's Economic Expansion

New Delhi, Sep 2 (KNN) India's economic growth is being propelled by substantial investments in infrastructure, inclusive development, and manufacturing, alongside efforts to simplify regulations, according to Union Minister Ashwini Vaishnaw.

Speaking at the Economic Times World Leaders Forum on Saturday, Vaishnaw highlighted the government's multifaceted approach to driving progress.

Regarding infrastructure, Vaishnaw emphasised that investments are extending beyond physical and digital assets to include social resources.

Notably, the number of medical colleges in India has nearly doubled to 706 over the past decade, and the count of premier All India Institutes of Medical Sciences (AIIMS) has increased from seven to 22.

On the manufacturing front, Vaishnaw pointed out that the government is focusing on creating new industries through initiatives such as the Production-Linked Incentive (PLI) schemes.

The PLI for mobile phone manufacturing has resulted in the creation of 1.2 million direct and indirect jobs over the past ten years. The production value of mobile phones manufactured in India surged from USD 2.3 billion in 2014 to USD 50 billion in 2024.

This year, Apple is set to manufacture its latest model in India. The value of electronics manufacturing in India reached USD 105 billion as of 2022-23, up from USD 29 billion in 2013-14.

Vaishnaw announced plans for a new program aimed at expanding the component ecosystem in India, similar to the growth seen in electronics and mobile manufacturing.

India has achieved notable progress in mobile phone manufacturing, becoming the second-largest producer globally, behind China. Cumulative shipments of locally produced handsets exceeded 2 billion units from 2014 to 2022, according to market research firm Counterpoint.

Building on this success, the government is launching another PLI program to develop a semiconductor chip manufacturing and packaging ecosystem from the ground up.

"Our approach encompasses the entire ecosystem—design, fabrication, assembly, testing, marking, packaging, and talent development," Vaishnaw said.

Additionally, a new scheme will focus on electronics component manufacturing, with the government expected to allocate up to Rs 40,000 crore for this initiative.

The Ministry of Electronics and Information Technology, which oversees these schemes, anticipates that successful applicants will invest around Rs 82,000 crore, with the total value of components produced estimated at Rs 1.95-2 lakh crore.

The previous scheme, the Promotion of Electronics Manufacturing and Semiconductors (SPECS), which offered a 25 per cent capital subsidy for electronic products with higher domestic value addition, ended in March this year. The new expansive incentive scheme aims to bolster local electronics component manufacturing.

Vaishnaw also discussed the integration of digital public infrastructure, such as the Unified Payments Interface (UPI), to facilitate credit access.

The government plans to use digital payment histories of individuals and small businesses as collateral to support credit availability, promoting inclusivity in technology.

In terms of physical infrastructure, the government has approved projects worth Rs 2 lakh crore since June 2024, marking the start of its third term.

Significant achievements include laying over 31,000 kilometers of railway tracks in the past decade, with an average of 14.5 kilometers per day in FY24, and constructing 327 kilometers of viaducts for the Mumbai-Ahmedabad bullet train line.

This train will feature a 21-kilometer undersea tunnel, among 370 kilometers of railway tunnels built, more than double the amount constructed before 2014.

(KNN Bureau)