India is set to establish a central intelligence agency for manufacturing in order to bolster the country's manufacturing sector and make it more globally competitive. This move comes as part of the government's efforts to increase the share of manufacturing in GDP to 25% by 2047, up from the current 17%. But how will this intelligence unit contribute to achieving this ambitious goal?

Analyzing Key Performance Indicators for Manufacturing Success

The proposed intelligence unit will conduct a comprehensive analysis of the domestic market to identify products with high demand and growth potential. By studying value-added, export performance, technological prowess, supply chain effectiveness, labor productivity, and access to global markets, the agency aims to develop key performance indicators (KPIs) that will drive manufacturing success.

Government Schemes and Initiatives: Driving Manufacturing Expansion

The intelligence unit will also evaluate the impact of various government schemes and initiatives aimed at boosting local production and encouraging export substitution. Notable programs include the Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore, the Make in India initiative, and the Phased Manufacturing Programme (PMP). Assessing the effectiveness of these schemes will be crucial in formulating future strategies.

Benchmarking Global Manufacturing: Learning from the Best

To gain insights and learn from global best practices, the intelligence unit will study the top ten countries and their contribution to global manufacturing output. This analysis will help identify strategies and approaches that can be adopted to enhance India's manufacturing capabilities. The unit will collaborate with industry bodies, officials from commerce and industry, and other ministries to ensure a comprehensive understanding of global trends.

Export Potential and Ease of Doing Business: Removing Barriers

In addition to assessing manufacturing competitiveness, the intelligence unit will evaluate India's export potential by identifying products with global demand. This information will be instrumental in guiding foreign trade negotiations and reducing trade barriers. Furthermore, the agency will analyze policies and schemes aimed at enhancing manufacturing competitiveness and recommend reforms to streamline regulations and promote ease of doing business.

Consultancy Agency and Implementation Strategy

To facilitate the establishment and functioning of the intelligence unit, the government plans to hire a consultancy agency that specializes in manufacturing intelligence. This agency will provide expertise and guidance throughout the process, ensuring effective implementation of the unit's objectives. The intelligence unit will also collaborate with the Steering Committee for Advancing Local Value-Add and Exports Research Analysis, Programme Implementation, and Data Intelligence Unit (SCALE RAPiD) for comprehensive insights.

Future Outlook: A Thriving Manufacturing Sector

The establishment of a central intelligence agency for manufacturing marks a significant step toward realizing India's vision of becoming a global manufacturing powerhouse. By leveraging data-driven insights, benchmarking global best practices, and evaluating the impact of existing policies, this initiative aims to drive growth, attract investments, and enhance India's overall competitiveness in the manufacturing sector. With a focus on innovation, export promotion, and ease of doing business, India is poised to establish itself as a key player in the global manufacturing landscape.