In a dynamic economic context, the focus is on an increase in investments and production, with particular attention given to the sectors of semiconductors, renewable energies, and defense. The government, determined to strengthen national self-sufficiency, is directing its budgetary efforts to reduce dependence on imports. The goal is to increase the share of the manufacturing sector in GDP over the coming years. This strategy aligns with the vision of propelling India to a leading status in these key areas while ensuring stable and sustainable economic growth.
As part of the current economic policy, Rohit Agarwal from Kotak Mahindra emphasized the importance of increasing investments in the manufacturing sector. It is expected that this sector will contribute between 18 and 20% to GDP in the next five to ten years. The government intends to continue allocating a substantial budget to capital expenditures, with incentives and standard operating procedures to strengthen the manufacturing industry. Agarwal highlights the key role of semiconductors, renewable energies, and defense in this strategy. Additionally, he noted that Trump’s protectionist inclination would not affect this dynamic as the primary goal is to reduce dependence on imports, particularly in sectors like solar energy which could triple or quadruple in capacity.
Increase in Investments in Semiconductors
The semiconductors sector is positioned as a key element in modern industrial development. By focusing on this area, governments aim to reduce their dependence on imports by strengthening local production. This strategy is part of a broader effort to enhance domestic manufacturing activity, where semiconductor production is deemed crucial for the development of advanced technologies.
Renewable Energies: A Strategic Pillar
Renewable energies are becoming a crucial lever for economic growth and environmental sustainability. By valorizing infrastructures such as solar, wind, and other clean energy sources, investments in this sector promise to triple or quadruple current capacities. This strong mobilization is accompanied by protective policies aimed at optimizing the development of local players while competing against cheaper imports. Companies like Amazon continue to lead the way by massively supporting renewable energy, further enhancing the sector’s appeal.
Defense: Focus on Domestic Production
In the defense sector, initiatives aim to establish national self-sufficiency, thus stimulating the growth of local industries while addressing security issues. By strengthening local production of defense equipment, the government aims to reduce its dependence on external sources. This movement aligns with the Atmanirbhar Bharat philosophy, which promotes a self-reliant India, thereby reducing imports in crucial sectors such as defense.
