India: Navigating Manufacturing and Energy Transition Challenges

The Economic Survey 2024-25 highlights the importance of coordinated efforts among government, private sector, and other stakeholders to establish India as a manufacturing powerhouse. It emphasizes deregulation, skilling, and strategic focus on China's role in the manufacturing sector and energy transition challenges.

The Economic Survey 2024-25 underscores the need for synchronized efforts across government, industry, and academia to bolster India's manufacturing sector as global economic conditions remain uncertain. The survey advocates for deregulation, skill development, and support for small enterprises to enhance competitiveness.

Positioned against China's manufacturing dominance, India faces challenges in energy transition and material supply chains. India's current dependence on China, particularly for lithium-ion batteries, complicates its ambitions in renewable energy and industrial growth.

The survey calls for accelerated deregulation and strategic focus on industrial reforms, encouraging states to adopt best practices for uniform progress. It highlights the concentration of industrial activity in a few states and suggests reforms to boost overall industrial output.

(With inputs from agencies.)