Intro: From war zones to boardrooms, Saurabh Sanyal has built bridges—literally and strategically—for over four decades. In this exclusive conversation with Mahima Sharma of Indiastat, the decorated Army veteran and former CEO of PHDCCI decodes India’s industrial future. With sharp insights on PLI, AI, rural credit and women-led growth, he calls out gaps, challenges myths and offers grounded solutions. His words cut through jargon, urging policymakers to act—not just announce. Read the powerful interview at Socio-Economic Voices to rethink India’s real growth engines.

MS: The PLI scheme, set to phase out by mid-2026, will give way to the Component Manufacturing Scheme under the National Manufacturing Mission. With $200 billion in production and over 1.2 million jobs generated till FY 2024–25, how effective is its design in enabling deeper value-chain manufacturing beyond mere assembly?

SS: The PLI (Production Linked Incentive) scheme is a government initiative that provides financial incentives to companies based on their incremental sales or production output, while component manufacturing is the process of producing individual parts or sub-assemblies that make up a larger product. The PLI scheme aims to boost overall domestic manufacturing and production, including component manufacturing, by incentivizing companies to increase their output and invest in advanced technologies. Replacing the PLI scheme is not going to help all components manufacturers.

MS: With industrial production growth slowing to just 1.2 % in May 2025 (manufacturing up only 2.6 %)—lowest since Sep 2024—what strategic interventions would you prioritize to revive momentum, particularly in capital and export-oriented goods?

SS: In my experience and opinion, India needs to introduce PLI in all industrial sectors, specifically those in the MSME sectors. Reduce Excise duty and customs duty on health and food related exports Reduction in cost of raw materials such as steel for automobiles manufacturing which will certainly give a big boost to our industry and increase productivity.

MS: National dialogue on AI-driven smart and sustainable manufacturing emphasizes digital transformation to meet targets of raising manufacturing’s GDP contribution from ~15.9 % to 25 % by 2030. What specific policy levers or institutional collaboration models would you recommend to scale AI adoption in traditional MSMEs?

SS: In my opinion, two steps would be greatly helpful.

1)Trust is the cornerstone of successful, responsible AI adoption at scale, requiring transparency, reliability, alignment, privacy and fairness.

2) Embedding humans in AI design and development ensures fairness, mitigates bias and builds systems that work for everyone.3) Data protection and compliance are non-negotiable; leaders must prioritize security to scale AI confidently in a fast-evolving regulatory landscape.4) Training meticulously the MSMEs who have yet not adopted AI in their systems due to fear and lack of trust.

MS: We take an example of Hyundai’s HTWO Innovation Centre at IIT-Madras—with government backing—is mobilizing MSMEs in localizing hydrogen production and infrastructure. What should be the steps ahead - how can similar MSME-led models be replicated across states to support India’s broader hydrogen and green energy ambitions?

SS: Before I answer this, I would like to ask as to what has the Govt done for incentivising manufacture of green hydrogen which requires a large Capex and opex? Even the utilisation of such green hydrogen today in Bharat is suspect. The Republic of Norway has done commendable work in production, transportation and utilisation of green hydrogen which should be studied and adopted by our country. Currently MSME cannot afford to get into this sector and that stands my personal opinion, in my capacity and understanding.

MS: The ADEETIE scheme launched in July 2025 targets MSME clusters (jewellery, pharmaceuticals, food processing) for clean-energy deployment with technical and financial support. What metrics and institutional mechanisms would ensure MSME clusters realize measurable energy savings and productivity gains?

SS: MSMEs are yet to realise the importance of the scheme as it has been recently introduced.1) It aims to catalyze the adoption of energy-efficient technologies among Micro, Small and Medium Enterprises (MSMEs), enhancing their competitiveness and contributing to India’s climate goals. 2)This Scheme offers comprehensive financial and technical support to Udyam-registered MSMEs, enabling them to implement energy-efficient technologies with a proven potential to save at least 10% of energy. 3)The scheme is structured to provide targeted assistance in the form of interest subvention on loans, Investment Grade Energy Audits (IGEA), Detailed Project Reports (DPRs) and post-implementation Monitoring and Verification (M&V). 4)The scheme is envisaged to provide interest subvention of 5% for Micro and Small Enterprises and 3% for Medium Enterprises on loans, ensuring accessibility and affordability for MSMEs seeking financial aid for energy efficiency projects.5)The scheme also includes provisions for capacity building, with BEE providing assistance through its ADEETIE online platform, designed to facilitate financing for energy-efficient projects in the MSME sector.

MS: Retail inflation hit a six-year low by mid-July 2025, leading RBI to stay neutral after a 50 bps rate cut in June. Yet, car sales, real estate, and rural demand remain weak. What targeted monetary, fiscal, and sectoral actions would you recommend to revive growth—especially in rural areas and women-led enterprises—without stoking inflation?

SS: Here I would like to go deeper this time and suggest the following measures:-

On the momentary front, what needs to be done is create and implement:

1. Targeted Credit Programs to implement subsidised interest rates and relaxed collateral requirements for loans to women-led businesses, particularly in rural areas, through existing schemes like Mudra and Stand-Up India.
2. Credit Guarantee Schemes that can expand credit guarantee programs, like the Women Enterprise Acceleration Fund, to cover a larger portion of loan defaults, encouraging financial institutions to lend to women entrepreneurs.
3. Microfinance Expansion to actually fully strengthen microfinance institutions and self-help groups (SHGs) to reach women in remote areas, providing access to small, flexible loans.

On the Fiscal Policy Aspect, the government needs to:

• Direct Subsidies and Grants - Direct subsidies for setting up businesses, especially in sectors with high potential for rural development and women's participation, like agriculture and related industries.
• Tax Incentives - Offer tax breaks and deductions for businesses that employ a significant percentage of women or operate in rural clusters.
• Infrastructure Development - Invest in infrastructure development in rural areas (roads, electricity, internet access) to reduce operational costs and improve market access for women-led enterprises.

India also needs Sector-Specific Support via the following measures:

1. Skill Development for which customised vocational training programs to the specific needs of women-led businesses, focusing on areas like digital literacy, financial management and sustainable farming practices.
2. Marketing and Networking is required via organizing workshops and mentorship programs to connect women entrepreneurs with potential customers, buyers and distributors, both domestically and internationally.
3. Access to Technology that too affordable technology and digital tools to streamline operations, improve marketing and access information.
4. Promote Value Addition by supporting women-led enterprises in processing and value-adding agricultural products, increasing their income and market competitiveness.

I would also like to suggest some important considerations here:

• Inflation Management - Carefully monitor the impact of these measures on inflation and adjust policies as needed to maintain price stability. Avoid excessive liquidity injection that could fuel inflation.
• Monitoring and Evaluation - Establish robust monitoring and evaluation mechanisms to track the effectiveness of these measures and make necessary adjustments.
• Coordination - Ensure effective coordination between different government agencies, NGOs and private sector actors to maximize the impact of these support measures.
• Addressing Societal Bias - Actively address societal biases and gender stereotypes that hinder women's participation in entrepreneurship through awareness campaigns and promoting positive role models.

MS: With over 6.5 million property cards issued across 230 districts by Jan 18, 2025, under the Svamitva scheme, how would you propose converting these records into actionable rural credit products (e.g. micro-mortgages, agri-enterprise loans), particularly in underserved districts?

SS: In my opinion the use of technology tools will be very effective to consolidate these records at district, subdivisions and divisions level and maintained at state level. This data can be shared by the state government to bank’s financial institutions etc.

MS: Industry leaders, including CII’s president, emphasised diversifying agriculture (to horticulture, fisheries), boosting irrigation, cold storage and rural industrial parks near industrial corridors to drive rural demand and job creation Hindustan Times. In your view, which states or clusters are best positioned to pilot this model and what combination of public-private investment and regulatory reforms would you recommend?

SS: Based on the geographical positioning of states, horticulture, fisheries, animal husbandry, poultry etc can be easily implemented. These sectors should also be brought under agriculture and given equal weightage and benefits and tax subvention. For example the southern states closer to seas can develop big fisheries (many of them are already in it e.g Kerala, Tamil Nadu etc) horticulture in the northeast and animal husbandry and poultry in UP and MP and Rajasthan.

MS: Considering the interplay between industrial policy (e.g. GCC expansion into tier-2/3 cities The Economic Times), women’s welfare (MyGov forums), rural infrastructure schemes and digital integration across sectors, what coordinated governance architecture would you propose to ensure these policies reinforce each other, avoid fragmentation and deliver inclusive growth by mid-2026?

SS: Inter-sectoral synergy and inclusive growth are achieved through coordinated efforts across different sectors of the economy and society, ensuring that the benefits of growth are shared by all, particularly the marginalised and vulnerable. This involves promoting collaboration between government, private sector, civil society, and communities to address systemic inequalities and create opportunities for everyone. I am sharing something more here:

Key Strategies for Achieving Inter-sectoral Synergy and Inclusive Growth:

1. Fostering partnerships between government agencies, businesses, non-profit organizations, and community groups is crucial. This involves creating platforms for dialogue, joint planning and resource sharing. This is a must to address complex challenges like poverty, inequality and environmental sustainability.
2. Investing in human capital like prioritizing education, healthcare, and skills development, especially for marginalised communities, is vital. This empowers individuals with the knowledge and capabilities to participate fully in the economy and improve their livelihoods.
3. Promoting inclusive markets and institutions to ensure fair access to markets, finance and technology for all.Needs to be done particularly for small and medium-sized enterprises (MSMEs) and informal sector businesses, is essential. This can involve simplifying regulations, providing access to credit, and promoting digital inclusion.
4. Investing in infrastructure, social services, and economic development in lagging regions can help bridge the gap between different parts of the country. This can involve targeted policies and programs to support specific regions and communities.
5. Strengthening social safety nets, such as unemployment benefits, food security programs, and healthcare, can provide a safety net for vulnerable populations and ensure they can participate in the economy.
6. Promoting Environmental Sustainability:
   Integrating environmental considerations into economic development policies and practices is crucial. This involves promoting green technologies, sustainable resource management, and climate resilience.
7. Implementing policies and programs that specifically target the needs of women, minorities, persons with disabilities and other marginalised groups is essential. This can involve affirmative action, targeted social programs, and efforts to combat discrimination.
8. Leveraging digital technologies to expand access to information, education, healthcare, and financial services. These must be done to empower marginalised communities and promote inclusive growth.
9. Regularly monitoring and evaluating the effectiveness of inclusive growth policies and programs is crucial to ensure they are achieving their intended outcomes. And also to make necessary adjustments.

About Saurabh Sanyal

A seasoned professional with 42 years of diverse experience. Served in the Indian Army’s Corps of Engineers and later led PHD Chamber as CEO and Secretary General for a decade. Managed policy advocacy with key ministries like Finance, Commerce, MSME, and Exim Bank. Executed large-scale infrastructure and power projects across India, Africa, and Bhutan. Promoted MSMEs in defence procurement and CSR. Twice awarded the COAS Commendation and the Best Officer Merit Medal. Holds a B.E., M.Tech from IIT Chennai, M.Sc. in Disaster Mitigation, and PGDBM. Trained at IIM Kolkata and Army War College. Engaged with global trade bodies and signed 153 MoUs. Expert in governance, stakeholder engagement, and economic reforms. Known for integrity, vision, and execution.

About the Interviewer

Mahima Sharma is an Independent Senior Journalist based in Delhi NCR with a career spanning TV, Print, and Online Journalism since 2005. She has played key roles at several media houses including roles at CNN-News18, ANI, Voice of India, and Hindustan Times.

Founder & Editor of The Think Pot, she is also a recipient of the REX Karmaveer Chakra (Gold & Silver) by iCONGO in association with the United Nations. Since March 2022, she has served as an Entrepreneurship Education Mentor at Women Will, a Google-backed program in collaboration with SHEROES. Mahima can be reached at media@indiastat.com

Disclaimer : The facts & statistics, the work profile details of the protagonist and the opinions appearing in the answers do not reflect the views of Indiastat or the Journalist. Indiastat or the Journalist do not hold any responsibility or liability for the same.