Regional resource-based manufacturing (RRBM) leverages locally available raw materials to boost manufacturing activity. It is a key component of National Manufacturing Policy which envisages a 25% share in GDP by 2025 compared to 17% in 2019. E.g.: One District One Product scheme (Uttar Pradesh).
RRBM boosting employment.
1. Creates forward and backward linkages which boosts economic activity along entire supply chain.
2. The use of locally available raw materials reduces logistics costs and wastages (currently at 14%, whereas USA 8%)
3. Jobs of all skill levels generated leading to economic prosperity.
4. Balanced regional development due to utilising the locally found resources
5. Supports ancillary industries that feed the primary manufacturing unit- further increase in jobs.
6. Local production creates local demand resulting in a virtuous economic cycle.
Lack of infrastructure, political instability, low human capital and low output efficiency are some impediments to RRBM. If addressed, every Rs. 1 crore investment in Manufacturing would create 11 jobs, leading to economic prosperity, employment and most importantly balanced regional development.