Why are Manufacturing Funds Worthy of Your Portfolio?

India's manufacturing sector greatly impacts fields like logistics and maintenance, making this thematic fund a strong addition to your investment portfolio.

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Manufacturing is a significant component of an economy’s growth engine, alongside services and agriculture. For India, the services sector currently dominates, contributing 56% to the GDP, followed by manufacturing at 27%, and agriculture and allied sectors at 17%. Despite this progress, there is considerable room for growth in the manufacturing sector, which can play a critical role in the country’s economic development.

The Crucial Role of Manufacturing

Manufacturing is essential for several reasons. Firstly, it plays a crucial role in import substitution by reducing the need to import goods, decreasing dependency on foreign products, and strengthening the domestic economy. Producing more goods locally helps conserve foreign exchange reserves and enhances self-reliance, which is vital during global trade disruptions.