Budget 2023-24 wishlist: Here're the key challenges in manufacturing sector

Current sector snapshot

The IIP manufacturing for November expanded to its highest in five months after a subdued performance in October 2022. Domestic demand may be the critical driver in the coming months for the manufacturing sector. The government’s thrust toward capital expenditure in the infrastructure sector will have a multiplier effect.

Overall, the economy has shown resilience against geopolitical headwinds, supply chains, and inflationary challenges. The government has announced the PLI scheme for 14 other sectors. The scheme will focus on achieving global competitiveness in the manufacturing sector.

Key challenges

• It will be essential to build a resilient and responsive supply chain

• Cyber risk is viewed as the biggest challenge

• The democratisation of digital technologies will accelerate adoption and drive productivity gains

• Organisations facing a shortage of talent will have to keep up with digitisation and upskill their workforce

• From an ESG perspective, automated data capture and reporting will be critical for net zero and decarbonisation disclosures