India’s Path to Global Manufacturing Leadership: The Role of Health and Education

India’s Path to Global Manufacturing Leadership: The Role of Health and Education

Health and Education Reforms: A Blueprint for India’s Manufacturing Dream

India’s aspiration to establish itself as a global manufacturing leader aligns with the pathways taken by nations such as China. With a young, dynamic population and a growing domestic market, the potential for transformation is immense. However, to realize this vision, the country must address two critical pillars: healthcare and education. Current statistics highlight significant gaps in these areas, and without intervention, these challenges could hinder India’s journey toward becoming a manufacturing powerhouse.


Tackling the Malnutrition Challenge

India is grappling with severe malnutrition issues, as evidenced by its 105th rank out of 127 countries on the Global Hunger Index. With a worrying score of 27.3, malnutrition is classified as a “serious” concern. Alarming statistics include:

  • 13.7% of the population being undernourished.
  • 18.7% of children under five experiencing wasting (low weight for height).
  • 35.5% of children under five facing stunting (low height for age).

While initiatives like the National Food Security Act, Poshan Abhiyan, and PM Garib Kalyan Yojna have driven improvements, much remains to be done.

Learnings from China

China’s sustained investment in healthcare has resulted in drastically reduced levels of undernourishment, child wasting, and stunting. These improvements have directly contributed to a healthier, more productive workforce — a cornerstone of its manufacturing success. For India, persistent malnutrition poses a dual threat to public health and economic ambitions.


Linking Education to Economic Growth

Despite being home to the world’s second-largest education system, India struggles to meet the demands of an ambitious nation. Challenges include:

  • Over 1.33 million Indian students seeking education abroad in 2024, signifying dissatisfaction with domestic opportunities.
  • A Gross Enrolment Ratio (GER) of 28.4% for higher education (18–23 age group), compared to 60% in China.

Importance of a Skilled Workforce

A thriving manufacturing sector requires a skilled, adaptable workforce. India’s education system needs significant reforms to align with industry demands. Measures to achieve this include:

  1. Expanding Accessibility: Increasing enrollment opportunities in rural and underserved areas.
  2. Modernizing Infrastructure: Upgrading facilities to meet global standards.
  3. Industry-Aligned Curricula: Bridging the gap between academic learning and practical, job-ready skills.

Investments in education will also ensure workforce flexibility, enabling the adaptation of skill sets in response to evolving industry trends.


Budgetary Expectations

Between 2012-13 and 2022-23, spending on the Department of Health and Family Welfare constituted less than 2.5% of the Union Government’s total expenditure, with the current figure standing at under 2%. Similarly, education spending remains below 3% of total budgeted expenditure.

Key Budgetary Recommendations

  • Health Sector: Increase healthcare funding to combat malnutrition and improve public health infrastructure, thereby fostering a healthier workforce.
  • Education Sector: Allocate resources to enhance the quality of education, improve accessibility, and reduce reliance on foreign institutions for higher studies.

By addressing these funding gaps, the 2025 Union Budget can pave the way for significant progress in these critical areas.


The Way Forward

India’s ambition to lead in global manufacturing hinges on the health and education of its population. Strategic investments in these sectors will create a foundation for a skilled, innovative, and productive workforce.

Key Recommendations (Point-wise):

  1. Health:
    • Boost funding for malnutrition-related schemes like Poshan Abhiyan.
    • Improve healthcare accessibility in rural and urban areas.
    • Enhance healthcare infrastructure with modern technology and adequate staffing.
  2. Education:
    • Invest in higher education infrastructure.
    • Align curricula with industrial needs to produce job-ready graduates.
    • Promote vocational training and skill development programs.

As India approaches the centenary of its independence, prioritizing healthcare and education is not merely a moral obligation but an economic necessity. These investments will chart the nation’s trajectory toward becoming a developed nation and a true global manufacturing leader.

By fostering a healthier and more educated population, India can achieve sustainable growth and realize its manufacturing dream. The upcoming Union Budget 2025 offers a critical opportunity to take the necessary steps toward this vision.

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