Manufacturing India 2025

Manufacturing India 2025

 
Preface

As we look at the world economy today, India stands out for its high potential and has already emerged as the fastest growing major economy. India has however taken a rather unconventional path of economic development; leapfrogging over the manufacturing-led stage of development and relying on the service sector to drive its economic growth. In many ways, the success of the services sector is also an indictment of our failure to develop a diverse and strong manufacturing industry. Despite some fundamental strengths possessed by the country in terms of a large and growing domestic market base, a strong base of entrepreneurs, vast human resources, well regulated monetary system etc, the question arises as to why India’smanufacturing sector with an 18% share of overall GDP compares poorly with its Asian peers. The lack of an enabling infrastructure and restrictive labour laws stand as major constraints to India’s manufacturing growth. Moreover, complicated central and statelevel tax and legal systems make manufacturing across states in India difficult and cost intensive.

The Government, with its landmark “Make in India” programme has set the juggernaut rolling in the right direction for the manufacturing sector. The program includes major new initiatives designed to facilitate investment, and build best-in-class manufacturing infrastructure. It is expected to provide much required conducive environment for manufacturing sector to grow to its potential. The “Make in India” pitch has energised the global investor and business community and boosted confidence among key domestic stakeholders as igniting the manufacturing sector is the key to kick-start a virtuous cycle of higher economic growth in India.


Kaushal Sampat
President &
Managing Director - India
Dun & Bradstreet

However, the goal of increasing the share of manufacturing sector to 25% of GDP would involve various opportunities and challenges. In order to effectively catalogue this journey of growth, D&B has instituted a research based publication: “Manufacturing India 2025” that analyses the prospects of the Indian manufacturing sector over the next decade. This report provides forecasts of overall economy and manufacturing sector by 2025, identifies critical parameters that will drive growth during this period and also attempts to chart out some of the major policy initiatives that would propel the nation as a global manufacturing hub.

We believe that growth in manufacturing would be a sum of diverse growth paths of various industry sub-sectors identified in the “Make in India” programme.

I hope that you find this publication to be a useful research tool and an invaluable addition to your library. We look forward to receive your valuable feedback and suggestions.