A look at what PM Narendra Modi is planning to do in his potential third term, as per his adviser
Narendra Modi’s government has pledged to boost manufacturing in India as it seeks a third term in power, potentially increasing the country’s control on supply chains and creating jobs, a government adviser said.
Modi’s government would target the export-oriented sectors that face high import duties which hurt their competitiveness, Arvind Virmani, a member of the government’s policy making agency Niti Aayog, said in an interview on Friday.
A Modi administration would also focus on lowering trade barriers and improving output-linked incentive plans, he said, adding that the finance ministry is identifying sectors where duties can be reduced.
Earlier this year, India reduced tariffs on several mobile-device components to boost production and make exports competitive. Industries including textiles, leather, and engineering goods have all made the case for lower import duties.
Modi is luring manufacturers to the country with heavy incentives, such as tax cuts, rebates and capital support. The strategy is showing early successes with firms like Apple Inc. and Samsung Electronics Co. ramping up production in India.
However, the World Bank put the share of manufacturing in the nation’s gross domestic product at about 13% in 2022, while the South Asian nation had hoped to increase that figure to 25% by 2025.
Read more: India Slowly Taking Export Market Share From China, Study Shows
Virmani said India should also expedite pacts with major trading partners, including the US, to take advantage of investors’ appetite
