Sanjiv Puri, the President of the Confederation of Indian Industry (CII) and Chairman and Managing Director of ITC Ltd, has called for targeted interventions in labour-intensive sectors and a renewed focus on Micro, Small, and Medium Enterprises (MSMEs) to propel India’s economic growth to the next level. In a recent interview with Aggam Walia and Aanchal Magazine, Puri discussed the importance of leveraging key industries such as footwear, apparel, tourism, and furniture to enhance manufacturing output and create significant employment opportunities.
Puri emphasized that India’s agricultural sector would always remain important, as it employs around 45 to 46 percent of the country’s workforce. While acknowledging the sector’s fundamental role, he pointed out that the country’s future growth relies on expanding other sectors, particularly manufacturing. He explained that manufacturing holds the key to taking the country’s economy to new heights by driving both growth and employment. The CII president called for a renewed focus on specific industries where India already has a competitive advantage, as well as those that can be more effectively tapped into with strategic policies and government support.
The footwear, apparel, tourism, and furniture sectors were highlighted by Puri as labour-intensive industries with great potential for growth and job creation. These sectors, with their large-scale employment capacities, can contribute significantly to India’s overall economic development. By creating targeted interventions in these industries, India could harness the growth potential of these sectors, addressing the pressing issue of unemployment in the process. According to Puri, the government’s role is crucial in ensuring the necessary policies, funding, and infrastructure to encourage both domestic and international investments in these sectors.
In particular, Puri believes that footwear and apparel have the potential to emerge as major drivers of economic growth, as they not only have a strong demand globally but are also well-suited to India’s manufacturing capabilities. The country’s labour force is skilled in these areas, making it an ideal location for both domestic production and export. He suggested that the government should continue offering incentives and schemes to boost these sectors, further enhancing their competitiveness on the global stage.
Similarly, Puri emphasized the importance of the tourism sector, which has the ability to drive both domestic and international spending, create jobs, and promote regional development. He stressed the need for creating better infrastructure and encouraging more public-private partnerships in the tourism space. By investing in the country’s tourism potential, India can generate significant economic activity and employment opportunities, particularly in rural and semi-urban areas, which are often underserved in terms of economic development.
The furniture industry, which has shown immense promise in recent years, was also on Puri’s radar as one of the sectors that could significantly contribute to India’s growth story. With a growing middle class and increasing demand for both domestic and international markets, the furniture sector presents a unique opportunity for manufacturers to scale production, enhance design innovation, and meet consumer demands. Again, targeted interventions in the form of policy support, access to financing, and skills development are key to driving growth in this industry.
Alongside the emphasis on sectoral interventions, Puri highlighted the significance of MSMEs in India’s economy. MSMEs serve as the backbone of the country’s employment sector, providing jobs to millions of Indians and contributing substantially to the nation’s GDP. As India seeks to position itself as a global economic powerhouse, MSMEs remain critical to the nation’s success. Puri stressed that the government must continue its focus on supporting these enterprises through various schemes, particularly those that address the challenges of access to capital, modern technology, and skill development.
Puri’s remarks underscore the need for a comprehensive approach to economic growth, one that supports key industries while fostering the development of MSMEs. His vision of a vibrant, inclusive economy requires sustained investment in sectors that can both enhance manufacturing output and create widespread employment opportunities. By ensuring that these sectors are given the attention they need, India can accelerate its growth trajectory, not only moving towards a stronger manufacturing base but also improving the livelihoods of its citizens across the nation.
Puri also touched on the importance of innovation and technology adoption within the labour-intensive sectors to enhance productivity and global competitiveness. He stated that embracing modern technology and automation, while balancing it with the need for job creation, can provide these industries with a much-needed boost. For instance, integrating advanced manufacturing processes into the footwear and apparel sectors could increase output without sacrificing quality. Likewise, promoting the use of digital platforms and e-commerce within the tourism and furniture industries could expand their reach and attract a broader consumer base, both domestically and internationally.
He also addressed the need for a skilled workforce, emphasizing that India’s demographic dividend can only be fully realized if adequate training and development programs are implemented to equip the labour force with the necessary skills. Whether it is in traditional sectors such as apparel and furniture manufacturing or emerging industries, skilled workers are crucial to maintaining high standards of production and meeting the demands of a competitive global market. Puri advocated for stronger collaborations between industry bodies, educational institutions, and the government to design programs that are tailored to the specific needs of these growing sectors.
Furthermore, Puri acknowledged the challenges that MSMEs face, especially in terms of financing. While many small and medium businesses struggle to access affordable credit, the government’s ongoing efforts to improve the ease of doing business in India have shown promise. He suggested that more measures should be taken to streamline credit processes and encourage financial institutions to invest in MSMEs, particularly those that are in the early stages of growth. By improving access to capital, MSMEs can scale up their operations, invest in technology, and expand into new markets, all of which will drive economic growth and job creation.
Puri also highlighted the need for sustainability within these sectors, particularly in light of growing global concerns over climate change and resource conservation. He encouraged industries, especially the manufacturing sectors, to adopt more sustainable practices that minimize environmental impact. This could include reducing waste, conserving water, and using eco-friendly materials. By aligning growth with sustainability, industries can tap into the growing global demand for green products and practices, ensuring that they remain competitive in an increasingly environmentally conscious world.
India’s focus on boosting labour-intensive sectors also requires strengthening infrastructure, especially in terms of logistics and transportation networks. Puri noted that inefficiencies in the supply chain could hamper growth, particularly for industries such as footwear and furniture, which rely on both domestic and international supply chains. Expanding infrastructure development and improving logistics will reduce costs and improve delivery timelines, making Indian products more attractive in global markets.