India must promote manufacturing to reduce trade deficit: Prime Minister

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Pic source - PMO

  In his Independence Day address to the nation, Prime Minister Narendra Modi highlighted the importance of strengthening India’s manufacturing sector to reduce trade deficit. The PM said, “If we have to develop a balance between imports and exports, we will have to strengthen manufacturing sector.” The PM added that India has the largest youth population in the world, with around 65% of India’s total population of around 1.23 billion below the age of 35 years. This could help India become a manufacturing powerhouse and reduce trade deficit, he said.

Source - Ministry of Commerce

The PM assured that while the government will lend its full strength to harness the manufacturing potential of India, world powers are also invited. “Sell in any country of the world but manufacture here,” he said. “We have got skill, talent, discipline, and determination to do something. We want to give the world an favourable opportunity that come here, ‘Come, Make in India’ and we will say to the world, from electrical to electronics, automobiles to agro value addition, paper to plastic, satellite to submarine, ‘Come, Make in India’. Our country is powerful. Come, I am giving you an invitation.” The PM expressed disappointment that India imports even items that could be manufactured locally. He urged the youth to manufacture at least one imported item through small scale industries to reduce dependency on imports. “We should even advance to a situation wherein we are able to export such items. If each one of our millions of youngsters resolves to manufacture at least one such item, India can become a net exporter of goods,” the PM said. According to the Commerce Ministry, India’s trade deficit in April - July 2014 has declined to around $45.3 billion, down about 24% compared to around $59.9 billion recorded during the same period last year.