April 4, 2020
The Government is targeting to have manufacturing represent 25 per cent of the national GDP while creating 100 million new jobs by 2022
Enterprises such as Samsung, Ford,, Pfizer, PepsiCo, Apple, Nestlé, GE, Boeing, among others, are operating manufacturing plants around India
Given the rising activity, cumulative FDI into India’s manufacturing sector totaled US$91.2 billion during the period of April 2000-June 2019
India jumped 12 positions to reach the 68th rank in trading across borders on the World Bank’s Ease of Doing Business (EoDB) 2020 report
Manufacturing has emerged as a driving force for the Indian economy. It is critical, not just for economic value creation, but also for building future capabilities and creating sustainable income opportunities. Herein, the Government’s Make in India programme with the support of a range of other initiatives such as Digital India, Skill India, Startup India, among others, has put the nation on the world map as the preferred destination for diverse manufacturing activities. With the skills enabled by these platforms, India is expected to come up as the fifth largest manufacturing destination in the world by end-2020. The Government is also targeting to have manufacturing represent 25 per cent of the national GDP while creating 100 million new jobs by 2022. Additionally, as part of a broader agenda, manufacturing is key to the Government’s aim of setting up a US$5 trillion economy by 2025.
Rising investment in R&D and innovation through corporate as well as academic avenues, evolving skill sets surrounding new technologies, improved focus on infrastructure development have already led to a growing number of global companies setting up manufacturing operations in India. Enterprises such as Samsung, Ford, Procter and Gamble, Pfizer, PepsiCo, Apple, GE, Nestlé, Boeing, GlaxoSmithKline, among others, are operating manufacturing plants in India, attracted by India’s 1.3 billion consumer base as well as a rapidly-growing export market. Meanwhile, their activities in India have gradually expanded from basic manufacturing to include core innovation and development. Given the activity, cumulative FDI into India’s manufacturing sector totaled US$91.2 billion during the period of April 2000-June 2019. This is expected to grow as India further liberalises foreign investment.
The Government of India has recently taken various steps, in addition to the ongoing schemes, to boost industrial production of India. They include:
Owing to the proactive measures taken by the Government, India jumped 12 positions to reach the 68th rank concerning trading across borders on the World Bank’s Ease of Doing Business (EoDB) 2020 report. Overall, India has progressed 79 spots in the World Bank EoDB ranking over the past five years. Strengthening manufacturing prowess has also helped India rise in the global value chains. Beyond the fast-expanding local consumption, increasing global participation in manufacturing will make India a critical stakeholder of the world economy. India already contributes 3.5 per cent of the global GDP.