The Centre has been putting in a lot of effort to drive growth of the domestic manufacturing sector and protecting Indian companies from Chinese dumping, but it will not go for over-protection, Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister, said on Friday.
The government is of the view that the contribution of the manufacturing sector to the GDP should over time grow, Sanyal said while speaking at an event organised by the Calcutta Chamber of Commerce here.
“We are putting in a very big effort into getting manufacturing going in India. And a lot of effort has been put in, for example, protecting Indian companies from Chinese dumping which happens all the time. It’s not perfect, but we are providing some protection. We do not want to go too far with it because our own history tells us that if we overprotect our industry what will happen is the Ambassador car scenario...where we need to provide protection we will provide protection,” he pointed out.
The economist said for the growth of the domestic manufacturing sector the government has been putting in place various types of schemes like production linked incentive (PLI) scheme.
“PLI is one of them. There are many. There are many efforts that the Centre has done and some state governments have also done. And the cumulative effectof that is that we can clearly see that manufacturing investment and manufacturing growth are clearly accelerating. And the very latest few numbers show that,” Sanyal said, adding India’s higher GDP growth at 7.6 per cent for Q2FY24 was backed by the manufacturing sector.
“We want to have somewhat balanced growth. For the last many decades, India’s growth has been heavily driven by services. Service sector growth is a good thing...But at the same time we have the view that we need to have another engine for growth, particularly coming from manufacturing. Manufacturing has to be an important part of the mix,” he added.