Launch supplier development programs

These programs could encompass sharing of technology licenses and know-how, mentorship opportunities, and partnerships to manufacture value-added offerings linked to the core product (e.g., EV companies could help their MSME suppliers develop informatics, safety systems, and battery management systems).

Key actors: Large companies and conglomerates (annual revenues >USD 500 million)

Establish supplier grants for manufacturing innovation

Large corporations can explore supplier grants for development of breakthrough innovations in advanced manufacturing. To support this, a National Manufacturing Technologies Mission could identify technology gaps across sectors and facilitate the acquisition and transfer of manufacturing technologies through international JVs and alliances

Key actors: Large companies and conglomerates (annual revenues >USD 500 million), with support from industry bodies like FICCI and ELCINA

Partner with domestic technology firms

These partnerships could be aimed at incorporating IoT-based assembly line and distribution productivity enhancements (such as digital twins, chatbots, RPA-based automated maintenance, and 3D printing) to enhance operational efficiency across key metrics (yield, quality, cycle time etc.)

Key actors: At-scale manufacturers (annual revenues of >USD 50 million)

Develop employee capability-building programs

At-scale manufacturers could upskill or reskill their employees with latest manufacturing technologies (such as computer-aided technologies, product design, etc.) through tie-ups with academic institutions and digital training platforms.

These programs could be complemented by digital centers of excellence (created under the ambit of industry skill councils).

Key actors: At-scale manufacturers (annual revenues of >USD 50 million), with support from industry skill councils (e.g., NSDC)

Promote greener manufacturing

Manufacturers could promote circularity (e.g., battery waste reuse) by creating recycling hubs and leveraging shared infrastructure. They could also prioritize the creation of green alternatives to existing products, through sustainable packaging, green building materials, etc.

To support this, industry bodies could define a standard for “green” labels and establish a robust auditing process for green products.

Key actors: Manufacturers in the sustainability industry (e.g., makers of solar panels and EVs), with support from FICCI, EESL and other industry bodies

Establish free trade zones and port-proximate clusters

The central government could facilitate globally competitive manufacturing hubs in high-potential sectors (like electronics and capital goods, chemicals, textiles and apparel).

State governments could support efforts by creating plug-and-play cluster zones based on their manufacturing strengths. For example, Nagpur could become a world-class efficient logistics zone for manufacturing in electronics and aeronautics.

Key actors: Central and state governemnts

Increase effectiveness of production-linked incentive schemes

Accelerating growth of economy by PLI scheme and increasing effectiveness by encouraging component eco-system, offering investment-linked incentives for capital-intensive and sunrise sectors (e.g., ACC Batteries, EVs, hydrogen fuel cell), targeting unexplored sectors such as white goods/industrial goods and including other segments in already announced PLI sectors such as all components under electronics (e.g., UPS, Solar invertors) , CDMO/CRAMS manufacturing in Chemicals scheme.

Key actors: Central government

Strengthen infrastructure

India could strengthen infrastructure in key manufacturing hubs through PPPs and SPVs and expand smart-city coverage. It could also utilize new technologies to provide essential utilities (e.g., it could facilitate off-grid rural market electrification through solar infra).

Key actors: State and central governments

Simplify compliance requirements

The central government could create a one-stop shop for clearances and industry queries through an e-governance platform. This would reduce project delays and costs as well as digitize the compliance process (by implementing BRAP, expanding the use of e-signatures, etc.).

Key actors: Central government

Improve scale and effectiveness of EXIM bank

Through collaborations with commercial banks, the EXIM bank could support large transactions and reinsurance programs and extend export financing for both pre- and post-shipment stages

Key actors: Central government