Manufacturing
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India's manufacturing sector contributed around 15% to GDP in recent years, below China's 34% contribution. India accounts for only 1.8% of world manufacturing output compared to China's 13.7%. Key sectors in Indian manufacturing include gems and jewelry, textiles, food processing, chemicals, and IT hardware. The government has implemented special economic zones, liberalized foreign investment policies, and developed industrial corridors to boost manufacturing. Initiatives also aim to increase employment in manufacturing by focusing on small businesses, skills training, and improving productivity.
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This document provides an overview of the principal industries in India, which include oil and gas, textiles, cement, mining, automotive, and pharmaceuticals. It discusses the history and growth of each industry, highlighting their contributions to India's GDP and employment. For example, it notes that the oil and gas industry contributes over 34% of export earnings and India is the second largest cement producer globally. The document concludes that India's principal industries are growing rapidly but some need more growth and resources must be utilized sustainably for future generations.
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The document provides an overview of India's manufacturing sector. It discusses key topics such as the importance of manufacturing, classification and size of the sector, export and import trends, technology intensity, and challenges. Some key points:
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- Exports are dominated by low technology goods. Engineering goods, gems and jewelry account for over 60% of exports but India has less than 1% share in global markets. Imports exceed exports, leading to a large trade deficit.
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Consulting club presents'The Indian Economic Outlook'
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Mexico has seen strong growth in manufacturing exports over the past decade by leveraging its proximity to the US market and establishing free trade agreements. It targets the US automotive industry in particular, receiving duty-free access. Mexico also works to diversify its export markets while maintaining competitive advantages in low-cost labor and energy. These concerted efforts to build on location advantages and access developed country markets have supported Mexico's rise as a global manufacturing superstar.
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The Indian manufacturing sector has grown steadily over the long term at an annual rate of 13%, but there remains significant untapped potential to increase its contribution to GDP and employment. While historical growth has been strong, recent manufacturing performance has been below par, with output declining in 7 of the past 11 months. The slowdown in capital goods has been particularly concerning. However, the government has introduced several initiatives through programs like "Make in India" to promote manufacturing growth by improving infrastructure, easing business regulations, and reforming labor laws.
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The Indian economy grew at 6.28% in FY 2011-12 but slowed to an estimated growth rate of 5% in FY 2012-13, below the budgeted rate of 7.6%. Inflation increased over this period from 8.4% to 10.44% while industrial production and FDI declined. The mining and metals sector saw negative growth of 2.01% and 2.33% respectively over the two fiscal years. Salary increases across sectors averaged 12% in FY 2012-13, with manufacturing seeing the highest at 15% and financial services the lowest at 10%, as the economy faced challenges of inflation and slowing global growth.
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Manufacturing
- 1. Manufacturing : India value proposition Prepared & presented by : SUDHIR KUMAR
- 2. Current Scenario o Manufacturing sector contribution to India GDP : 15.7% in the year 2011-2012 15.2 % in the year 2012-2013 Below 15.2 % in the year 2013-2014 o China contribution to the GDP is 34 % o India share in world manufacturing is only 1.8 % where china contributes 13.7 % to the world manufacturing . o Share of manufacturing sector in total merchandise export declined substantially over the period 2000-2001 to 2012-2013 from 76 % to 59% where China contributes 93 % in 2012-2013. o Manufacturing sector contributes to India GDP will 25 % by 2025 as per estimated by NMCC Report .
- 3. Key Sectors in India Manufacturing o Agriculture o Gems & Jewellery o Leather Industry o Textiles Industry o Food Processing o Chemicals Industry o Plastic industry o Handicraft o Paper Industry 75 % of mfg export o IT hardware/Electronics o Cement o Minerals and Metals o Telecom Equipt o Drugs/Pharmaceuticals 25 % of mfg export
- 4. Manufacturing Sectors contribution o Germs & Jewellery - employs an estimate of 2 million workers o Leather industry - employs around 2.5 million people . o Textile industry – employs 20 million people . o Plastic Industry - 0.5% of India's GDP , 4 lakh employees o Chemical industry - 7 % of India’s GDP, 1 million employees o Food Processing - employs 1.6 million Jobs o Paper industry - 1.6 % of India GDP , employs 1.2 million jobs
- 5. Continued….. Manufacturing , accounting nearly 15.3 % of real GDP in FY12 and employing about 12 % of the country labour force . rate of growth of manufacturing sector in FY12 was 3.3 % while real GDP growth was Near by 6.5 .
- 6. Manufacturing competitive index GMCI index considers market dynamics and policy issues that influence the market . GMCI expects the India competitiveness score to improve to 9.01 out of 10 by 2015 from 8.15 in 2010 .
- 7. Contribution of manufacturing to employment in India 4.55 5.65 7.54 5.12 4.11 7.32 11.4 12 0 2 4 6 8 10 12 14 workforce (percent) Source : IBEF
- 8. Government initiative o Implementation of SEZ Act o Investor - Friendly FDI Policies o Delhi-Mumbai Industrial corridor o New manufacturing policy 2011
- 9. Boosting Employment in Manufacturing sector o Focus on MSMEs o Target skill development o Enhance the labour productivity o Enhance the capital Productivity