India’s manufacturing growth will hinge on stronger domestic demand and a lighter regulatory burden on smaller businesses, according to Jamshyd Godrej, Managing Director of Godrej & Boyce. Speaking to mediapersons on the sidelines of the 21st CII Manufacturing Summit 2025, he said private investment remains slow, but the real concern is demand, not risk appetite.
"Whether it's private or public investment, it is really driven by demand," he said, stressing that investors step in when they see consumption rising. "If the demand is there, everyone will invest," he said, adding that policy focus should be on stimulating demand rather than fixating on investment numbers.
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Godrej noted that reforms such as the Goods and Services Tax have improved the business environment but pointed out persistent bottlenecks in daily operations. "There are many other areas for ease of doing business that need to be done," he said, highlighting the challenges faced particularly by smaller units.
On labour codes and their impact on micro, small and medium enterprises (MSMEs), he was categorical: "The MSME sector in India has been overburdened with regulation and the more that you can do to ease their regulatory burden, the better it is," he said, emphasising that reducing cost and complexity directly supports growth.
Reflecting on India’s position in the global value chain, Godrej said, "Countries like China and others in the region have become manufacturers to the world." He added, "This is something that we have to aspire to; we have to aspire to be a manufacturer to the world, while underlining that despite recent progress, an enormous amount remains to be done."
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