The projections are made at current prices and the underlying targets tor

current prices) of Rs.

average annual growth rates are based on the past trend. GDP (at
3.60,00,000 crore in 2024-25 is equivalent to approximately USD 5 trillion at the
assumed exchange rate of Rs. 72/- per USD.
MANUFACTURING SECTOR ECONOMY REVIEW AND WAY FORWARD
The growth prospects for India look optimistic and India is gearing up to become a
of
global manufacturing powerhouse as the manufacturing sector forms the backbone
the Indian cconomy. In addition, MNCs are now able to diversify their production
capabilities to include low cost manufacturing, thereby driving sustainable growth for
the sector. Following three-pillar strategy is suggested to achieve required expansion of
the manufacturing sector output, whose broader view is shown in Figure-1.
a) Focus on existing high impact sectors
b) Focus on emerging sectors
c) Focus on MSMEs
Defence
India is the third largest military and sixth biggest defence spender in the world.
The defence budget (2018-19) is about Rs 2.95 lakh crore, about 12 per cent of the total
central government expenditure for the year 2018-19. The following measures are
suggested: Identify key components and systerns and encourage global leaders in these
components and systems to set up manufacturing base in India. Forge industry - R&D
labs - academia collaborations. Set grand challenges for new concepts, technologies
and its adaptation. Institute priority-sector funding and encourage long-term funding
mechanisms
Electronics
India's Electronics System, Design & Manufacturing (ESDM) sector is
expectedtomorethandoublein3years'time,fromUSD100billionin2016-17toUSD 228
billion by 2020. It is expected that nearly 75 per cent of the total domestic demand for
clectronic goods will be met through imports by 2020. The following measures
aresuggested: Correct any inverted duty structure in Custom duty and GST
ratestructures. Identify specific components and/or systems for integration into global
value chains. Encourage focused Electronics associations or technical experts. Ensure
high-quality anchor investors in clusters.
Aeronautical
There is high domestic demand. India now the third largest buyer of aircrafts.
India is expected to take deliveries of 2,100 new planes worth USD 290 billion in the
next 20 years, accounting for more than 5 per cent of the total global demand of 41,030
arerafts. However, the entire requirement will be largely met through imports. The
Iollowing measures are suggested: Strengthen existing clusters by improving flexibility
In regulations. Support measures to develop the Maintenance, Repair and Operations
segment. Support measures to develop the air cargo segment.
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