India’s Manufacturing Revolution
The Indian manufacturing sector currently stands as one of the primary growth sectors in India, catering to both domestic and international markets. First 2 phases of India’s transformation through the Amrit Kaal vision focused on building the digital and the physical infrastructure.
- Phase 1 created a nationwide marketplace with GST, ONDC, UPI, Jan-Dhan accounts, Aadhaar, and affordable telecom.
- Phase 2, still ongoing, focuses on physical infra through the Gati Shakti initiative to enhance logistics efficiency and future readiness. The 3rd phase of Amrit Kaal will focus on growth of Industrial and Services sectors.
India is poised to continue emerging as a preferred destination for manufacturing investments due to the availability of raw materials, low labor costs, a favorable corporate tax rate for manufacturing, and proactive government support through incentives.
The Industry sector currently accounts for 27.3% of India's GDP, and is expected to increase its share to more than 30% by 2035. By then India’s GDP will potentially reach $10 trillion, giving more than $3 trillion opportunity for Industry sector as compared to $1 trillion now.
The manufacturing sector's expansion will not only contribute to GDP growth but also generate substantial employment, reduce import dependency, and improve trade balances. To realize this potential, the sector must adopt advanced manufacturing technologies, improve supply chain efficiencies through infrastructure development, and foster a conducive business environment.
