The Indian government has launched a significant initiative aimed at boosting manufacturing across seven strategic sectors, which are expected to drive job creation, enhance domestic value addition, and strengthen long-term industrial competitiveness. Finance Minister Nirmala Sitharaman presented this ambitious plan, emphasizing the need for targeted industrial interventions to accelerate economic growth. The sectors identified for this focused approach include biopharmaceuticals, semiconductors, electronics components, rare earth magnets, chemicals, capital goods manufacturing, and textiles.

Biopharma SHAKTI Programme

In a bid to position India as a global hub for biopharmaceutical manufacturing, the government has introduced the Biopharma SHAKTI programme. This initiative comes with a substantial investment of Rs 10,000 crores over the next five years. The programme aims to enhance domestic production of biologics and biosimilars, expand pharmaceutical education, and establish a network of over 1,000 accredited clinical trial sites. By fostering a robust biopharma sector, the government seeks to improve healthcare outcomes and create numerous job opportunities in this vital industry.

Semiconductors: Expanding Mission to Full Supply Chain

The government is also making strides in the semiconductor sector with the launch of ISM 2.0. This initiative aims to develop a comprehensive supply chain for semiconductor production, including the manufacturing of equipment and materials, as well as the design of full-stack Indian intellectual property. The plan includes establishing industry-led research and training centers to enhance technology and workforce capabilities. By strengthening the semiconductor ecosystem, the government hopes to reduce dependency on imports and bolster domestic manufacturing.

Electronics Components: Outlay Expansion to Build Domestic Ecosystem

To further support the electronics components manufacturing sector, the government plans to increase the outlay for the Electronics Components Manufacturing Scheme to Rs 40,000 crores. This expansion is intended to capitalize on the existing momentum, as the scheme has already attracted investment commitments that exceed initial targets. By enhancing support for this sector, the government aims to build a self-sufficient domestic ecosystem that can meet the growing demand for electronic components and devices.

Championing MSMEs: New Growth Fund and Risk Capital Support

Recognizing the crucial role of micro, small, and medium enterprises (MSMEs) in the economy, the government has unveiled a targeted financing strategy to support their growth. This includes the establishment of a Rs 10,000 crore SME Growth Fund designed to assist high-potential MSMEs and incentivize performance-based growth. Additionally, the government plans to bolster funding for micro enterprises by topping up the Self-Reliant India Fund with Rs 2,000 crores. This comprehensive approach aims to empower MSMEs, enabling them to thrive and contribute significantly to the economy.

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