India’s manufacturing sector is witnessing secular growth. And it could get better in the coming years on the back of economic growth, supported by favourable policy decisions by the government.
In recent years, the government has been lending support to the manufacturing sector through suitable reforms. More so since India’s manufacturing holds a lot of potential compared to the developed world. With India’s manufacturing supposed to reach 22% - 25% of the GDP, it still offers a growth opportunity worth $1 trillion.
Owing to coronavirus-induced lockdowns and industrial stress, the share of manufacturing has gone down vis-à-vis the services industry. That being said, this offers a potential to the manufacturing sector to stage a comeback in the post-covid era.
POLICY SUPPORT
The government has launched a series of programmes such as Make in India, India 4.0, Production Linked Incentives scheme and Samarth Udyog, among others with the aim of aiding and increasing production domestically.
Never before has there been greater focus on internal development than now, especially in the backdrop of sanctions and conflict in Ukraine now, which has caused supply chain disruptions and hampered energy
production, and the coronavirus pandemic and its ramifications in China and around the world.
Also, announcements are being made to reduce India’s reliance on foreign countries in the area of defence, medical products, energy and other sectors that are crucial to the growth of India’s national security or those that are dependent on other nations.
This story is from the October, 2022 edition of Beyond Market.
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This story is from the October, 2022 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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