Boosting Manufacturing and Services: India's Strategic Vision

Finance Minister Nirmala Sitharaman outlined India's policy focus on enhancing manufacturing and service sectors. At the ADB Governors' Seminar, she emphasized harnessing human capital and technology to elevate GDP and establish global supply chain links. The ambition includes attracting investments from Japan and negotiating a free trade agreement with the EU.

Finance Minister Nirmala Sitharaman expressed confidence in India's policy measures tailored to bolster the manufacturing and service sectors, contributing around 60% to the nation's GDP. Speaking at the ADB Governors' Seminar in Milan, she stressed leveraging India's demographic dividend and strengths in technology.

India aims to increase the manufacturing sector's GDP contribution from 12-13% to 18% by focusing on 14 priority areas like electronics and semiconductors. Production Linked Incentives will support these developments as India seeks to strengthen its supply chain ties internationally, emphasizing sustainable practices.

Sitharaman also highlighted the potential expansion of Japan's investments into India, appreciating the progress on a JPY 5 trillion target, while urging further partnership growth in sectors like green energy. The minister advocated for signing a free trade agreement with the EU during negotiations, underscoring the importance of flexible negotiation terms for successful trade deals.

(With inputs from agencies.)