A report on Tuesday showed that India’s industry sector is expected to outpace agriculture and take a larger share of the GDP (30-32 percent) by 2035, opening a $3 trillion opportunity, driven mainly by manufacturing.
Manufacturing is expected to emerge as the growth leader, taking a two-thirds share of industrials and more than a 20 percent share of the GDP by 2035.
According to Omniscience Capital’s report, higher domestic consumption, increasing per capita income, and a target of $1 trillion in merchandise exports are expected to drive this growth.
Manufacturing is pivotal to India’s economic growth, significantly contributing to the nation’s GDP. Currently, it is one of India’s key growth sectors, catering to domestic and international markets.
Government initiatives such as the Production-Linked Incentive (PLI) scheme, ‘Make in India’ campaign, liberalised Foreign Direct Investment (FDI) policy, public-private partnership (PPP) models for various public undertakings, and infrastructure development are fuelling this growth.
The report mentioned that to achieve India’s ambitious $1 trillion merchandise export target by 2030, merchandise exports should increase from the current $450 billion to $1 trillion, requiring a year-on-year growth rate of 12 percent.
India’s share in global merchandise exports has doubled from 0.9 per cent in 2005 to 1.8 per cent in 2023. India’s merchandise exports have grown at a 3-year CAGR of 18.8 per cent from FY21 to FY24 and a 5-year CAGR of 9.4 per cent from FY19 to FY24.
“India is poised to continue emerging as a preferred destination for manufacturing investments due to the availability of raw materials, low labour costs, a favourable corporate tax rate for manufacturing, and proactive government support through incentives,” said Ashwini Shami, EVP and Portfolio Manager at OmniScience Capital.
The government is developing 11 industrial corridor projects across the country in four phases under the National Industrial Corridor Development Programme (NICDP).
As of July 31, 2023, the DPIIT has sanctioned and released Rs 9,900 crore for the industrial corridor project, with Rs 9,817 crore already utilised. This is expected to create 1 million direct and 3 million indirect jobs, contributing to socio-economic upliftment.
–IANS
