Indian Manufacturing

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The ' Indian Manufacturing' sector has the potential to elevate much of the Indian population above poverty by shifting the majority of the workforce out of low-wage agriculture.

Manufacturing sector is the backbone of any economy. It fuels growth, productivity, employment, and strengthens agriculture and service sectors. Astronomical growth in worldwide distribution systems and IT, coupled with opening of trade barriers, has led to stupendous growth of global manufacturing networks, designed to take advantage of low-waged yet efficient work force of India. 'Indian Manufacturing' sector is broadly divided into -

  • Capital Goods & Engineering.
  • Chemicals, Petroleum, Chemicals & Fertilizers.
  • Packaging.
  • Consumer non-Durables.
  • Electronics , IT Hardware & peripherals.
  • Gems & Jewelery.
  • Leather & Leather Products.
  • Mining.
  • Steel & non-Ferrous Metals.
  • Textiles & Apparels.
  • Water Equipment.
Indian Manufacturing Industry is successfully competing in the global marketplace and registering high growth on YoY basis, but large sections of ' Indian manufacturing' sector still suffers from bottlenecks like -

  • Use of primitive technology or under utilization of technology.
  • Poor infrastructure.
  • Over staffed operations.
  • Expensive financing and bureaucracy.

Further, 'Indian Manufacturing' sector must focus on areas like improving the urban infrastructure, ensuring fair competition and access to markets, reduction of import duties, quality improvements in vocational and higher education, increased investment in R&D and support of SMEs. Government leaders, experts, and researchers focusing towards making Indian manufacturing globally competitive and to have a sustained growth, which contributes significantly to GDP growth, employment generation and overall economic development. It also aims to identify factors hampering industrial growth and seeks to redress these factors.

GDP's share of 'Manufacturing Industry in India'has grown from 25.38% in 1991 to 27% in 2004. Its contribution to exports has increased from 52% in 1970 to 59% in 1980 and 71% in 1990, 77% in 2000-01. Manufacturing exports accounted for a little over 5% of the value of output of the manufacturing sector in 1990. It is now close to 10%. India's currently exports manufactured products worth about $50 billion. A recent study on 'Scenario of Indian Manufacturing Industry' has forecast an annual growth of 17% and to cross the $300 billion mark by 2015. Most of this off-shoring business would be in the auto components, pharmaceutical, apparel, specialty chemicals, electrical and electronic equipment sectors.