New Delhi, Jan 13 (Blitz India Business) Prioritising the manufacturing sector and strengthening the micro, small and medium enterprises (MSMEs), among others, can not only ensure sustained economic development but also generate millions of employment opportunities, the PHD Chamber of Commerce and Industry (PHDCCI) said on Monday.
The industry chamber proposed a comprehensive five-pronged strategy aimed at creating employment and fostering economic growth and development in the country.
These pillars include boosting rural demand and agricultural reforms, enhancing export competitiveness and fostering university-industry linkages.
The industry body, in its 100-day agenda for the government, suggested to formulate a comprehensive National Employment Policy on a mission mode approach with targeted outcomes on a quarterly basis as increased employment would strengthen India’s journey towards Viksit Bharat by 2047.
PHDCCI suggests prioritising the manufacturing sector which contributes approximately 16 per cent to India’s GDP and “the target should be to increase this share to 25 per cent by 2030”.
Over the last few years, the government has made commendable strides by removing over 42,000 compliances, thus creating a more conducive environment for businesses.
Further, more needs to be done for the ease of doing business at the factories level so that entrepreneurs are able to deploy more and more workforce in their respective premises.
The second crucial strategy is to strengthen the MSMEs, backbone of India’s economy with over 60 million MSMEs that contribute approximately 30 per cent to the nation’s GDP and employ over 110 million people.
“Challenges such as easier availability of finances, robust technological infrastructure, and simplified regulatory environment should be strengthen for the futuristic growth of MSMEs,” said Hemant Jain, President, PHD Chamber of Commerce and Industry.
Boosting rural demand and agricultural reforms has been highlighted as the third pronged of the strategy which emphasises the importance of boosting rural demand, which is intrinsically linked to enhancing agricultural incomes.
“Rural demand, a key driver of economic growth, can significantly impact India’s employment landscape. Strengthening rural economies will create new opportunities for growth, particularly in the manufacturing and services sectors,” said Jain.
Enhancing export Competitiveness is the fourth pronged strategy by the industry body.
India’s exports reached an all-time high of $778 billion, and the goal is to achieve $2 trillion in exports by 2030 — $1 trillion from merchandise exports and $1 trillion from services exports.
Key measures to boost export competitiveness include streamlining trade facilitation processes, improving customs procedures, and reducing logistical costs.
Fostering university-industry linkages has been placed at fifth strategy by PHDCCI as strong linkages between universities and industries will accelerate technological advancements, develop new products, and create high-tech jobs in sectors like biotechnology, robotics, and information technology.
