Economy
Make India industrial
India is lagging behind in manufacturing
India’s manufacturing sector can help generate $300 billion. It will have to focus on 11 manufacturing chains. Small and medium enterprises (SMEs) will play a key role.
As per Mckinsey report: From fiscal year 2006 to fiscal year 2012, India’s manufacturing-sector GDP grew by an average of 9.5 percent per year. Then, over the next six years, growth declined to 7.4 percent. In fiscal year 2020, manufacturing generated 17.4 percent of India’s GDP, little more than the 15.3 percent it had contributed in 2000. (By comparison, Vietnam’s manufacturing sector more than doubled its share of GDP during the same interval.) And in the past 13 years, India’s manufacturing-sector share of employment increased by just one percentage point, compared with a five-point increase for the services sector.
11 sectors are divided under skill intensive, raw material intensive and technology/ innovation intensive.
- Vehicles and components
- Capital goods and machine tools
- Pharmaceuticals
- Chemicals
- Agriculture and food
- Metals
- Apparels and textiles
- Furniture, leather and rubber
- Electronics
- Aerospace and defence
- Renewable energy
It outlines that the strategy to grow should focus on domestic sales, exports, import localisation, and contract manufacturing for global markets. Higher productivity, technology know how and access to capitals are key to focus on the above.
