Centre backing domestic manufacturing to reduce import reliance: FM

The Central Government has extended support to the manufacturing sector through multiple budget announcements to enable domestic production and reduce India's dependency on imports, Finance Minister Nirmala Sitharaman said on Friday. Speaking at the Bharat Shakti Pondy Lit Fest in Puducherry, she stated that the government is incentivising those who want to free themselves from dependence on other countries and establish production capacity within India.

Sitharaman highlighted challenges in India's export dynamics, noting that while goods destined for China are technically being exported there, they are often routed through intermediary countries like Vietnam, affecting how exports are accounted for in India's trade records. She cited examples of bulk goods such as buffalo meat and pharmaceutical generic drugs that India supplies but not through direct market access.

The Finance Minister emphasized that the government's manufacturing support measures aim to both enable companies to start domestic production long-term and provide alternative sourcing options immediately to reduce reliance on foreign suppliers. These efforts form part of the broader government agenda to strengthen domestic production capacity and enhance self-reliance in key manufacturing sectors.