Resource Mobilisation and Industry Challenges

The Confederation of Indian Industry (CII) President, R. Mukundan, highlights the need for enhanced resource mobilisation following the West Asia crisis. He emphasizes the importance of accelerating exploration to address India's dependency on imports.

Production-Linked Incentive Scheme (PLI)

• The government should continue to push PLIs, focusing on sectors with high export potential and those with significant import dependency.
• A PLI scheme for chemicals used in active pharmaceutical ingredients is recommended, building on the success of the pharmaceutical industry.

Reforms and Resource Mobilisation

Mukundan categorizes necessary reforms into four areas: foundational, factor, future-ready, and fiscal/monetary. Highlights the necessity for:

• Improving ease, cost, and speed of doing business.
• Enhancing exploration to diversify supply chains for oil, gas, and critical minerals.
• Empowering MSMEs as part of industrial self-interest.

India’s Energy Future

Diversity of Energy Supply

India requires diverse energy sources including wind, solar, biomass, biofuel, nuclear, and tidal energy. The future power demands are expected to be 10 times higher, necessitating exploration in all directions.

Nuclear Power and Small Modular Reactors (SMRs)

• The adoption of SMRs is crucial for establishing a distributed grid and ensuring continuous power supply.
• Financing of nuclear projects will come from diverse sources, with industries acting as partners in operations.

Industry Development and Challenges

Discussion on the progression from upstream to downstream investments in industries like electronics, aircraft maintenance, and more. Emphasizes the need for achieving scale to develop industries fully.

Importance of PLIs

PLIs have shown success in certain segments and should continue to be supported, especially those with export potential and high import intensity. Adjustments to policy should be made where necessary to maximize benefits like tax revenue and employment generation.

India’s Critical Minerals Ecosystem

The mining sector is acknowledged as a long-term venture, requiring exploration, site identification, and establishment of processing facilities. Debt financing hinges on completion of comprehensive reports on deposit sizes.

International Deals and Import Dependencies

US and EU Deals

Securing deals with the US, EU, and UK is crucial for technology, market access, and capital. However, India remains reliant on China for imports, particularly in chemicals and fertilizers.

Diversification of Imports

• India needs to explore alternative sources for essential imports like phosphates.
• Potential alternative markets include Saudi Arabia, Morocco, Jordan, and Tunisia.