The Center has put in a lot of effort to boost the growth of the domestic manufacturing sector and protect Indian companies from Chinese dumping, but it will not go for excessive protection, said Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council. said Friday.
The government is of the view that the contribution of the manufacturing sector to GDP should increase with time, Sanyal said in a speech organized by the Calcutta Chamber of Commerce.
“We are making very strong efforts to start manufacturing in India. And a lot of effort has been made, for example, to protect Indian companies from Chinese dumping that happens regularly. It’s not perfect, but we offer some protection. We don’t want to go too far because our own history tells us that if we overprotect our industry, what will happen is the Ambassador car scenario… where we have to provide protection, we will provide protection,” he said. -He underlines.
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The economist said that for the growth of the domestic manufacturing sector, the government had introduced various types of schemes, such as the Production Linked Incentive (PLI) scheme.
“PLI is one of them. There is a lot of. The Center and some state governments have also made many efforts. And the cumulative effect of that is we can clearly see that manufacturing investment and manufacturing growth is clearly accelerating. And the very latest numbers show it,” Sanyal said, adding that India’s higher GDP growth at 7.6 per cent for Q2FY24 was supported by the manufacturing sector.
“We want to have somewhat balanced growth. In recent decades, India’s growth has been strongly driven by services. The growth of the services sector is a good thing… But at the same time, we believe that we need another engine of growth, particularly from the manufacturing sector. Manufacturing needs to be an important part of the mix,” he added.
