Govt plans factory groups, major reforms to increase the economy amid the US tariff

Copyright © HT Digital Streams Limit all rights reserved. The manufacturing sector of India, which makes up about one sixth of the economy, is expected to expand by 3.8% in the financial year 2026. (Reuters) Summary The proposals discussed include interest businesses, the development of manufacturing groups near infrastructure hubs and measures to attract more private capital. The measures are also expected to focus on the creation of jobs, promoting export and strengthening domestic consumption. New -Delhi: The government weighs new measures to increase manufacturing while investigating alternative markets to compensate the impact of US rates and making Indian products worldwide more competitive, according to two people familiar with the matter. The proposals discussed include interest -subventions, the development of manufacturing groups near infrastructure coats, and measures to attract more private capital, the people cited earlier said on condition of anonymity. The measures are also expected to focus on the creation of jobs, promoting export and strengthening domestic consumption. “In addition to targeted incentives, the government weighs structural reforms, ranging from the framework of the GST (goods and service tax) to fresh manufacturing stop, to increase the sector’s weight in GDP,” the first person said. ‘Importance is also given to sectors such as engineering, electronics, textiles, steel and construction, with a sharper focus on’ make in India ‘and’ vocal for local ‘. New PLI (production-linked incentive) schemes for heavy machinery in mining and construction are also discussed to combat the dependence on imports, “this person added. Last week, Premier Narendra Modi announced a Reformation Task Force in its Independence Day speech, which aimed to drive the next generation reform to an economy of $ 10 India’s manufacturing sector, which makes up about one sixth of the economy for the Monitoring of the Indian Economics (CMIE). spokesmen of finance and trade ministries, and the prime minister’s office did not respond to e -mail questions. Like roads, railways and ports, to create manufacturing centers that increase logistical efficiency and generate large -scale employment, “this person added.” These groups are aimed at increasing the manufacturing’s share in GDP of India. The linking of these groups with important infrastructure projects will help create seamless value chains, as well as domestic and foreign investment and a strong pressure on the economy, “the person said.” The group -based approach to manufacturing, where firms and industries work within an integrated ecosystem, are based on a strong theory, ” Experts take on a broad-based strategy to strengthen Indian manufacturing and increase global competitiveness, with an emphasis on scale, value adding and market diversification to reduce the vulnerability to tariff shocks. Upgrades, simplification of the regulatory, skills programs and increased investment in research and innovation, “says Hardik Shah, partner, Deloitte India.” These initiatives are not just as quickly corrected, but as part of a long -term vision of Vikksit Bharat to build resilience, to reduce and reliably. Worldwide Competitive Manufacturing Center, “Shah added. Catch all the business news, market news, news reports and latest news updates on live mint. Download the Mint Newsapp to get daily market updates.