Indian Manufacturing Needs Policy Support to Boost Sophistication: FM Sitharaman

New Delhi, May 20 (KNN) Finance Minister Nirmala Sitharaman on Wednesday underscored the need for the Indian manufacturing sector to develop greater sophistication in its products and said the government will assess policy measures to support this endeavour.

Dismissing suggestions from "some economists" to not focus on ramping up manufacturing, Sitharaman said, "Manufacturing must increase, and with the help of policies, India must increase its share in manufacturing and global value chains." This will also aid India's self-reliance efforts, she added.

The Minister cited a Capgemini report which found that 65 per cent of nearly 760 senior executives surveyed in the U.S. and Europe were planning significant manufacturing investments in India to reduce dependence on China.

Sitharaman, addressing the CII Annual Summit, also highlighted an S&P assessment that projected trillion-dollar opportunities in India's consumer market, expected to double by 2031, along with rising spending on food and financial services.

She emphasised skilling efforts to capitalise on India's demographic dividend and enable more consumption.

With healthy bank and corporate balance sheets, investments can push faster economic growth, the Minister said.

Attributing India's consistent high growth to policy stability, corruption-free governance and industry consultation on compliance, Sitharaman said the government partners with the private sector as a facilitator.

(KNN Bureau)