Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. (150 words)

Context

Manufacturing raises productivity, exports and non-farm employment; MSMEs are central to supply chains but face credit, technology and scale constraints.

Policy assessment

• Make in India and PLI: incentives have attracted investment in electronics, autos, pharmaceuticals and solar modules.
• MSME support: Udyam registration, CGTMSE credit guarantees, RAMP, public procurement preference, TReDS and cluster programmes improve formalisation and market access.
• Enablers: GST, logistics corridors, Gati Shakti, industrial corridors and the National Logistics Policy reduce transaction costs.

Gaps and way forward

• Improve timely working-capital finance, delayed-payment enforcement, skilling and technology extension.
• Integrate MSMEs into global value chains through standards, design support and predictable regulation.

Keywords

manufacturing share; PLI; Udyam; GVCs; formalisation