India Economic Survey 2023: The country is flagging in the industrial sector, EV industry will create 5 crore jobs

New Delhi. Finance Minister Nirmala Sitharaman placed the Economic Survey 2023 on the table of Parliament on Tuesday. The Economic Survey states that despite the rise in raw material prices due to the Russia-Ukraine war and supply disruptions, the industrial sector in India has performed exceptionally well. In the first half of the financial year 2023, the overall gross value added (GVA) of the industrial sector has increased by 3.7 percent. This is higher than the average growth of 2.8 per cent achieved in the first half of the last decade. The growth rate of eight core industries such as coal, fertiliser, cement, steel and refinery products has been steady. Sectors like auto mobile and electronics have done exceptionally well. On the other hand, the rate of textile sector has been slow in the current financial year.

Industries have an important place in the Indian economy. Their contribution in gross domestic production is 31 percent and it provides employment to more than 12.1 crore people. Indian industries have faced some extraordinary challenges in FY23. But despite this, the industrial production of the country is increasing. India has achieved second place in the world in mobile manufacturing and third place in manufacturing of pharma products. In 2022, India will become the largest manufacturer of two-wheelers and three-wheelers and the world’s fourth largest manufacturer of passenger vehicles.

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ever-growing electronics industry
India’s electronics industry is growing steadily. The production of mobile phones, consumer electronics and industrial electronics is on the rise. India has become the second largest mobile phone manufacturer in the world in the mobile phone segment. While 60 million mobile phones were made in India in the financial year 2015, this number has reached 310 million in 2022.

India’s third place in the pharma sector
According to the Economic Survey, India’s pharmaceutical industry has made its special place on the global stage. India ranks 3rd in the world in the production of pharma products and 14th in terms of value. India is the leading vaccine manufacturer globally with 60 per cent market share. The cumulative FDI in the pharma sector till September 2022 was more than $20 billion.

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30 lakh jobs will be created in the manufacturing sector
The Economic Survey states that the Make in India initiative has strengthened domestic manufacturing capabilities. The sector is expected to attract a capex of Rs 3 lakh crore in the next five years. 30 lakh jobs will be created in the manufacturing sector in the next five years. FDI equity inflows in the manufacturing sector to increase from US$ 12.1 billion in FY21 to US$ 21.3 billion in FY22. FDI inflows in H1 FY2023 are at $6.6 billion which is lower than H1 FY22.

MSME units became a major source of employment
The effect of the steps taken by the government to promote small and micro industries is now visible. By August 2022, the number of registered units on the Udyam portal has crossed 1 crore. 9.6 crore people are working in registered enterprises out of which 2.3 crore are women. Of these, 1.5 lakh are export units. By 30 November 2022, 1.2 crore MSME units had taken advantage of the ECAGS scheme. GST paid by MSMEs in FY 2022 has crossed the pre-pandemic level.

In 2022, India is the largest manufacturer of two-wheelers and three-wheelers and the world’s fourth largest manufacturer of passenger vehicles. The automobile sector is contributing 7.1 percent to the overall domestic product. Its contribution to the manufacturing GDP is 49 percent. According to the Economic Survey, the domestic electric vehicle market is expected to grow at a CAGR of 49 per cent by 2030. EV sales in India are expected to touch 10 million units annually by 2030. The EV industry is expected to generate 5 crore direct and indirect jobs by 2030.

Tags: Budget, Economic survey, FM Nirmala Sitharaman

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