As of October 2020, India’s manufacturing sector scaled an impressive improvement for the third consecutive month. Businesses grew production which was more than ever before in the last 13 years. Bouncing back from the pandemic, there was also a record as far as sales growth is concerned.
In India, there is a huge domestic market and the middle class as well as the overall population is only expanding. This has led to increase in demand and this will only grow over the next decade.
Investments have been on the increase in India. Gross Fixed Capital Formation which represents net investments in fixed assets stood at Rs 43,34,091 in 2020.
And then there is the government support – the Make in India initiative was launched back in 2014 with the primary goal of making India a global manufacturing hub. It aims to encourage both multinational as well as domestic companies to manufacture their products in India.
The policy was led by the Department of Industrial Policy and Promotion and it aims to increase the contribution of the manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025 from its current 16%.
It has already a number of new initiatives and has promoted foreign direct investment, implementing intellectual property rights and developing the manufacturing sector.
The government has set its sights on developing industrial corridors and it has also built smart cities with state-of-the-art technology and high-speed communication. There are several innovation and research activities that are supported by a fast-paced registration system and improved infrastructure for Intellectual Property Rights (IPR) registrations.
Not only this, there will also be training provided to the skilled workforce for the sectors is also being addressed.
India boasts of the largest young population in the world and the opportunities are aplenty for the country to unlock the manufacturing opportunity. Industrial manufacturing is by all means a major growth sector for the Indian economy and companies including those engaged in manufacturing of machinery and equipment, electrical and metal products, construction, rubber and plastic technology products are all on the rise.
There are a number of efforts which are on which goes a long way in facilitating multi-national partnerships, alliances and joint ventures in order to secure FDI. Also, there are benefits are there to be had from advanced technologies, and this promises to improve productivity through factory automation.
There has been a thrust on product development by initiating new technologies, new processes for a large group of manufacturers and it has paved the way for the simple task of assembling the products from the key components imported from abroad.