CEA Nageswaran flags land regulations as hurdle in realising India's manufacturing dreams

CEA Anantha Nageswaran

The manufacturing sector is likely to face severe global headwinds, which is compounded by domestic regulatory hurdles, particularly around land use, chief economic advisor V Anantha Nageswaran said on January 20.

Emphasising on the pressing challenges for enterprises and the limited credit flow to Micro, Small, and Medium Enterprises (MSMEs), he said, "Domestic regulations around land use make it more difficult for enterprises.”

Nageswaran was speaking at the EXIM Bank International Economic Research annual event.

The CEA’s comments come at a time when India is striving to position itself as a global manufacturing hub amid shifting global supply chains. However, structural issues such as stringent land laws, limited MSME funding, and global economic uncertainties are hurdles that require immediate attention.

He also pointed to agriculture as a potential growth driver for the economy despite its shrinking contribution to GDP as economies grow. “Agriculture is the sector for the future, though as economies increase in size, its share in GDP falls,” he remarked.