To Counter China, Modi Plans To Make India Global Manufacturing Hub In His Third Term, These Changes To Expect

Business-friendly measures are likely to be implemented by Prime Minister Narendra Modi if he wins a third term. This includes easier hiring and firing of workers through loosening regulations.

As per government officials cited by The Economic Times, subsidies will be offered for domestic manufacturing, similar to what is being offered to semiconductor chip makers and electric vehicle companies.

The aim is to transform India into a global manufacturing hub, for which import taxes on key inputs for made-in-India goods will also be reduced, bringing down the domestic manufacturing cost.

During the election campaigning, Modi has been emphasising making India the third largest economy in his third term, for which manufacturing is extremely necessary.

India wants companies to see the country as an alternative to China and diversify by shifting a portion of their supply chains from China to India.

The manufacturing sector will also create employment opportunities. Currently, India's share in global manufacturing is only 3 per cent and the aim is to bring to 5 per cent by 2030 and 10 per cent by 2047.

To attract global investors, land reforms and changes in labour regulations are needed. Specific industrial zones and cuts on import tariffs will also be offered.