Manufacturing

Manufacturing has emerged as one of the high growth sectors in India. Organised manufacturing is the biggest private sector employer in India. Overall, more than 30 million people are employed by the sector (organised and unorganised) and will become the engine of growth as it tries to incorporate the huge available workforce in India most of which is semi-skilled. India is expected to become the fifth largest manufacturing country in the world by the end of year 2020. Government aims to achieve 25 per cent GDP share and 100 million new jobs in the sector by 2022. India’s manufacturing industry is already moving in the direction of industry 4.0 where everything will be connected and every data point will be analysed. Indian companies are at the forefront of R&D and have already become global leaders in areas such as pharmaceuticals and textiles. Areas such as automation and robotics also receiving the required attention from the industry. The Gross Value Added (GVA) at basic current prices from the manufacturing sector in India grew at a CAGR of 4.29 per cent during FY12 and FY19 as per the annual national income published by the Government of India. The sector’s Gross Value Added (GVA) at basic prices based at current prices is estimated at US$ 403.47 billion in FY19PE. Quarterly GVA at Basic Prices for Q1 2019-20 stood at Rs 697,824 crore (US$ 99.85 billion in Q2 FY20. Cumulative Foreign Direct Investment (FDI) in India’s manufacturing sector reached US$ 91.20 billion during April 2000-June 2019. With the help of Make in India drive, India is on the path of becoming the hub for hi-tech manufacturing as global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either set up or are in process of setting up manufacturing plants in India, attracted by India's market of more than a billion consumers and increasing purchasing power. Skill India, a multi skill development programme has been started to equip the workforce with the necessary skills required by the sector. The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025 and India is expected to rank amongst the top three growth economies and manufacturing destination of the world by the year 2020. 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.

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