India Must Boost Domestic Manufacturing To Reduce Import Dependence: PMO's PK Mishra

India must bolster its domestic manufacturing sector to lessen its dependence on imports, according to Pramod Kumar Mishra, principal secretary to Prime Minister Narendra Modi. Mishra addressed this urgent need at the 13th SBI Banking and Economics Conclave 2026 in Mumbai. He emphasized the growing global supply chain uncertainties and increasing trade restrictions, which necessitate India's ability to produce goods within its borders.

Mishra pointed out India's significant merchandise trade deficit, growing from $123.88 billion in the same period last year to $147.09 billion in FY27's first half. Despite robust economic fundamentals, Mishra urged India to stay vigilant against potential risks arising from global developments. These include supply chains being used as instruments of power, capital's swift mobility, and rising trade barriers, both tariff and non-tariff.

Mishra stressed the need for enhancements in manufacturing, workforce skills, and foreign direct investment (FDI) inflows. He also highlighted the importance of stable tax policies, dependable logistics systems, and smoother approval processes. Mishra warned of the AI revolution, urging India to prepare for the rapidly evolving artificial intelligence landscape by strengthening its financial system.

He called for the transition from simply increasing access to advancing economic growth, emphasizing the need for stronger bond markets, institutional investors, and infrastructure funds to finance future requirements. Mishra also suggested adopting cash-flow-based lending for small businesses to minimize bureaucratic obstacles like time-consuming documentation, collateral demands, and drawn-out approval processes.