SCALE Committee looking at demand aggregation issues in manufacturing along with cost competitiveness: Dr Pawan Goenka, Chairman, SCALE Committee & IN-SPACe

December 08, 2023

No better time than today to leverage potential of manufacturing in India; India aims to achieve US$ 1 trillion worth of merchandise exports by 2030

NEW DELHI, December 8, 2023: Addressing at the 96^th FICCI’s Annual General Meeting (AGM) and Annual Convention, Dr Pawan Goenka, Chairman, Steering Committee on Advancing Local value-add & Exports (SCALE) today highlighted that India is at a pivotal moment of unlocking the full potential of the manufacturing sector. The sector currently contributes about US$ 450 billion to India’s overall Gross Value Addition (GVA) , accounting for a share of about 14.6 per cent, he added.

He mentioned that the SCALE Committee is trying to address a host of horizontal issues like demand aggregation within the manufacturing sector and across areas including , EoDB, cost competitiveness, brand India etc.

Dr Goenka added that India has a lot more ground to cover in manufacturing as India's share in global merchandise exports remains less than 2 per cent, with a global ranking of 17. He underscored the ambitious goal of achieving US$ 1 trillion in merchandise exports by 2030, encapsulating the aspirations of self-reliance in manufacturing and positioning India as a global manufacturing hub.

His address outlined India’s key inherent advantages including a burgeoning market, a vast consumer base, strategic geo-location, and a growing soft power. Dr Goenka also acknowledged the important role of government policies, particularly the commitment towards 'Make in India' through the Production Linked Incentive (PLI) scheme covering 14 sectors, as well as the immense support to renewable energy and infrastructure sectors.

Discussing five key enablers for manufacturing competitiveness—cost of doing business, scale, technology, quality competitiveness, market access through FTA/PTA, and brand India—Dr Goenka emphasized the need for greater investments in local capacity creation to enhance domestic value addition. The address also highlighted twelve major sectors identified during the Chintan Shivir for local capacity creation and higher value addition.

Talking about the key challenges being faced in manufacturing, Mr Sidharth Birla, Past President, FICCI & Chairman, Xpro India Ltd. said economies of scale and value addition have to be the anchors of development of the sector in India.

During the panel discussion moderated by Mr Alok Kshirsagar, Senior Partner, McKinsey & Company. Mr Manish Sharma, Chairman, FICCI Electronics and White Goods Committee and Chairman, Panasonic Life Solutions- India & South Asia emphasized on the significance of backward integration, harmonizing standards, and developing an ecosystem for policies and testing facilities aligned with international standards. He also shared success stories from India’s electronics sector.

Ms Sulajja Firodia Motwani, Chairperson, FICCI EV Committee and Founder & CEO, Kinetic Energy & Power Solutions Ltd talked about India’s transition to green mobility. She emphasized the importance of electrification in achieving Panchamrit Goals. Ms Motwani highlighted the need to generate demand, make EV prices attractive for consumers, and recognize the importance of putting in place a holistic EV ecosystem- including batteries, cells, minerals, and charging stations.

The industry leaders shared a comprehensive picture of India's manufacturing landscape, emphasizing the transformative steps required for ensuring sustainable growth and global competitiveness.

SCALE Committee looking at demand aggregation issues in manufacturing along with cost competitiveness: Dr Pawan Goenka, Chairman, SCALE Committee & IN-SPACe

FICCI Media Division

Releases in the Event:

FICCI Annual Convention and 96th Annual General Meeting

Dec 08 - Dec 09, 2023 Vigyan Bhawan, New Delhi

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