India is positioning itself as a compelling alternative in the realignment of global supply chains, given its abundance of raw materials, competitive labor costs, burgeoning manufacturing capabilities, and entrepreneurial spirit, said Shri Hardeep Singh Puri, the Minister of Petroleum & Natural Gas and Housing & Urban Affairs. He made these remarks while addressing the 118th Annual Convention of the PHD Chamber of Commerce and Industry (PHDCCI).
Shri Hardeep Singh Puri emphasized India’s manufacturing ambitions, noting that the sector currently accounts for 17% of the nation’s GDP and provides employment to over 27.3 million individuals. He highlighted Prime Minister Narendra Modi’s call for “Make in India, Make for the World” at the World Economic Forum earlier this year, signaling India’s readiness to raise the manufacturing sector’s contribution to 25% of GDP by 2025.
The minister commended India’s economic reforms and policies, including GST, IBC, asset monetization, labor law reforms, Performance-linked Incentives (PLI), the National Infrastructure Pipeline, and the Gati Shakti mission for multimodal connectivity. These measures, he noted, have addressed several structural deficiencies.
Highlighting India’s robust industrial foundation, Shri Hardeep Singh Puri pointed out that the country is the second-largest producer of steel, cement, and coal. He also mentioned India’s extensive infrastructure, which includes the second-largest construction of built environments, the fourth-largest railway network, and the second-largest road network. In the automobile sector, India is the largest producer of two-wheelers and the fourth-largest producer of four-wheelers.
Shri Hardeep Singh Puri lauded the transformative impact of the Performance-linked Incentives (PLI) scheme, which has revolutionized manufacturing in 14 strategic sectors. This initiative has led to a 76% increase in foreign direct investment (FDI) in the manufacturing sector and is expected to create an additional 60 lakh jobs over the next five years. Notably, the minister highlighted a 20% increase in value addition in mobile manufacturing within three years and a 139% surge in smartphone exports, underscoring the success of the PLI program.
Discussing the evolution of the energy sector in India, the minister noted the country’s dual focus on traditional fuel exploration and energy transition. India aspires to increase its net geographic area under exploration from 8% (0.25 million sq. kms.) to 15% (0.5 million sq. kms.) by 2025. India is a global exporter of petroleum products and boasts the fourth-largest refining capacity worldwide.
Shri Hardeep Singh Puri also highlighted significant achievements in the biofuel sector, citing an increase in ethanol blending from 1.53% in 2013-14 to 11% in 2023. India has launched the National Green Hydrogen Mission with an allocation of Rs. 19,744 crores to develop a green hydrogen ecosystem.
Regarding India’s journey toward green energy transition, the minister mentioned the support for electric vehicles through PLI and the establishment of alternative fuel stations at 22,000 retail outlets by May 2024. These initiatives align with India’s commitment to sustainable and eco-friendly energy solutions.