Think Learn & Perform (TLP)

The Only Dedicated Platform for UPSC Mains Answer Writing

Day 33 – Q 4. What measures can be taken to make India the global manufacturing hub like China? Suggest.

4. What measures can be taken to make India the global manufacturing hub like China? Suggest.

भारत को चीन जैसे वैश्विक विनिर्माण का केंद्र बनाने के लिए क्या कदम उठाए जा सकते हैं? सुझाव दें।


In 1990 China produced less than 3% of global manufacturing output. China now produces almost half of the world’s goods. The low cost of manufacturing in China played a huge role in making it the second largest economy. Now China is rapidly moving into medium to high-tech manufacturing as its labour costs have risen.

In such scenario, favourable demographic dividend over next 2-3 decades, availability of low cost labour and strong domestic market provides an opportunity for India to turn as a global manufacturing hub.


Measures India can take to achieve this

Factor cost reforms

  • Land reforms making it easier and affordable to acquire land.
  • Capital: allowing greater flow of FDI to reduce cost of borrowing.
  • Moving from over-protective to Flexible labour laws.
  • Predictable tax regime.

Investment in infrastructure

  • Well connected means of transport (road, rail, inland-waterway) to keep transportation cost minimum.
  • Development of industrial corridors would attract setting up new industries.
  • Adequate focus to ensure availability of hard and soft infrastructure (Power supply, credit flow, man power and other).

Business friendly ecosystem

  • Doing away with obsolete and obstructing framework and bringing transparent and user friendly business environment.
  • This involves comprehensive overhaul of outdated processes and policies. Examples: use of ICT in taxation system would reduce human interface; rent seeking behaviour; make process simpler thus reduce compliance cost.


  • Innovation is necessary to come up with new technology, new products and new brands.
  • Therefore Research and development needs to be given focus by bringing together scientists-research institutes-industries.
  • Strengthening patent regime.

Technology adoption:

  • Need to support technology upgradation in MSME’s.
  • Harnessing new technologies like Artificial intelligence and making country part industrial revolution 4.0.

Policy support:

  • Adequate measures to boost growth of MSME’s.
  • Strengthening traditional industries.
  • Focus on food processing industries.
  • Setting up Special Economic Zones and Coastal Economic Zones.
  • Simplifying tax system.


Given the potential of manufacturing sector and the need to shift workforce from primary sector, Government of India has come out with ‘Make in India’ initiative to make India global hub of manufacturing, research and innovation and integrate with global supply chain. Initiative should be followed with adequate policy measures to realise its objectives.

Best answer: shri

Print Friendly, PDF & Email