Question

Role of Manufacturing in Growth in Indian Economy.

Answer 1

Manufacturing has emerged as one of India's fast growing sectors. India's premier, Mr Narendra Modi, launched the 'Make in India' campaign to put India as a manufacturing hub on the world map and give Indian economy global recognition. India is expected to become the fifth largest production country in the world. By 2022, the government plans to achieve 25 per cent share of GDP and 100 million new jobs in the industry.

1) The manufacturing sector led to the development of stable jobs in the Indian economy which were not possible in agriculture.
2) It has helped to encourage modernisation and growth at large.
3) It has helped to increase the mechanization and productivity of the agricultural sector.
4) The industrial industry assists in adding value to the raw materials and also facilitates research and development.

With the aid of Make in India push, India is on the road to becoming the hub for hi-tech manufacturing as global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either established or are in the process of establishing manufacturing plants in India, attracted by India 's market of more than a billion consumers and rising purchasing power. During April 2000-December 2019, cumulative Foreign Direct Investment ( FDI) in India's manufacturing sector exceeded $89.15 billion.

India is an attractive hub for foreign manufacturing investment. Several cell phone, luxury and automotive brands, among others, have set up their manufacturing bases in the country or are looking to do so.

India's manufacturing sector has the potential to cross US$ 1 trillion by 2025 and by 2020, India is projected to rank among the world's top three growth economies and manufacturing destination. Implementing the Goods and Services Tax (GST) would make India a large market with a GDP of 2.5 trillion US dollars along with a population of 1.32 billion people, which would be a major draw for investors.