Knowing About Manufacturing Sector in India
The manufacturing sectors in India are undergoing a lot of challenges due to several factors. As a result, Indian government is trying to attract more investors these days in order to improve the economy. The manufacturing sectors are emerging as one of the high growing sectors in India. To make India as a leading manufacturing hub, the government recently introduced “Make in India “program to take the business to next levels. In addition, it will help new entrepreneurs to focus more on their objectives while starting a business. The manufacturing sectors will provide more job opportunities in the future.
What is the market size of manufacturing sectors?
A recent study states that the manufacturing sectors in India contributed more to the growth significantly. It even reveals that the business conditions will remain same that can boost the sales to a large extent. The sectors registered a strong growth compared to previous years. In addition, they contributed more in making the economy stronger one. Major companies such as HTC, Siemens, and Toshiba are setting up their operations in India that will provide more job opportunities for more people. Another thing is that they aim at following the latest technologies in production process to achieve high productivity.
Government initiatives
The Indian government is making some initiatives in order to boost the Indian economy significantly. Some of them include increased export incentives, financial assistance, training support, and ease of operations. It also opened several training institutes for enhancing the skills of students significantly. Major manufacturing industries such as food products, tobacco products, intermediate goods, and basic metals can benefit a lot from them that will improve the economy. Apart from that, the government is trying to encourage entrepreneurs in different sectors to meet the demands of markets.
Growth of manufacturing sectors
India is already becoming a leading hub for manufacturing industries over recent years due to better infrastructure facilities and other factors. In fact, the markets are expecting to grow high after few years. The Indian government is also considering developing industrial corridors and smart cities in order to satisfy the needs of investors. At the same time, the manufacturing sectors these days face some challenges and Indian government is trying to offer solutions for them with expert teams. The manufacturing units even have shortage of labour and other problems that affect their growth. However, , things will change in the future that can improve the Indian economy.
The future of Indian Manufacturing remains bright and we look forward to seeing the sector going from strength to strength in the coming years. Global economic scenario as well as the steps taken by the Government impact performance in the manufacturing sector in the short, medium and long term.
CII through its various activities under the aegis of National Manufacturing Council has been at the forefront of the MII agenda and worked closely with the Government in providing inputs on key issues across the manufacturing spectrum to facilitate growth, enhance efficacy and competitiveness as well as generate business opportunities for both local and foreign investors.The overall mission of the Council has been to align with MII and help manufacturing sector increase its contribution to 25% by 2022.
Road Ahead
India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country.
The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 2.5 trillion along with a population of 1.32 billion people, which will be a big draw for investors. The Indian Cellular and Electronics Association (ICEA) predicts that India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to US$ 100 billion by 2025 through policy interventions.
With impetus on developing industrial corridors and smart cities, the Government aims to ensure holistic development of the nation. The corridors would further assist in integrating, monitoring and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.
