Global Headwinds And Regulatory Issues Challenge India's Manufacturing Sector: CEA Nageswaran

1/21/2025 2:15:24 PM

(MENAFN- KNN India) New Delhi, Jan 21 (KNN) Chief Economic Advisor V Anantha Nageswaran highlighted significant obstacles facing India's manufacturing sector, including global economic headwinds and domestic regulatory constraints, during his address at the EXIM bank International Economic Research annual event on January 20.

The CEA specifically noted concerns about insufficient credit access for Micro, Small, and Medium Enterprises (MSMEs) while also identifying land-use regulations as a major impediment to enterprise development, while also noting.

These observations come at a critical juncture as India seeks to establish itself as a global manufacturing hub amid shifting international supply chains.

The country's ambitions, however, face substantial challenges from rigid land laws, constraints in MSME financing, and broader global economic uncertainties that demand swift policy attention.

Despite these challenges in the manufacturing sector, Nageswaran expressed optimism about agriculture's role in economic growth.

While acknowledging the natural tendency for agriculture's GDP contribution to decrease as economies expand, he emphasised its enduring importance, stating, "Agriculture is the sector for the future, though as economies increase in size, its share in GDP falls."

(KNN Bureau)

MENAFN21012025000155011030ID1109114295

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.