Building a "Viksit Bharat" - India's Manufacturing Ambitions

Can India truly become the next global manufacturing powerhouse?

Before the pandemic, India’s manufacturing sector was 16-17% of the country’s GDP. After, it was 17% and employed over 27.3 million workers. Additionally, the MSME sector handles around 45% of India’s exports. The United Nations’ report “World Economic Situation and Prospect 2024”, says India is the world's fastest-growing economy. Domestic demand will grow fast. The manufacturing sector is key to the Indian economy.?

India's manufacturing sector has shown strength and growth. In December 2023, its Purchasing Managers' Index (PMI) was 54.9, indicating steady growth. Despite five drops in the first nine months of FY 2023-24, the sector is doing well. In FY23, exports of six major items hit US$ 295.21 billion. They include engineering goods and pharmaceuticals. By February 2024, the PMI had risen to 56.9. Exports that month jumped 14.20% to US$ 73.55 billion. This highlights India's manufacturing sector's strength.

India's Manufacturing Progress Report

India's manufacturing sector achieved record exports. They reached US$ 447.46 billion in FY23, a 6.03% rise from the previous year.

Growth and Potential

• By 2030, India's middle class will account for 17% of global consumption.
• In the first quarter of FY24, the gross value added (GVA) was estimated at US$ 770.08 billion. Manufacturing contributed US$ 110.48 billion.
• The GDP grew by 8.4% in the October-December quarter. Manufacturing drove the growth, with an 11.6% increase. Construction also rose by 9.5%.
• India is on track to become a global manufacturing hub. It could add over US$ 500 billion annually to the global economy by 2030.

Market Projection

• The display panel market is also projected to grow from US$ 7 billion in 2021 to US$ 15 billion by 2025

How "Make In India" Sparked Change and Influenced Global Manufacturing?

Launched in 2014, the "Make in India" initiative has transformed India's manufacturing. It aims to make India a global manufacturing leader. The initiative encourages local and foreign companies to produce goods within the country. It focuses on sectors like automobiles, textiles, and electronics. The initiative boosts growth with policy reforms, better infrastructure, and simpler regulations.

It simplified business rules and attracted foreign investments. Now, more multinational companies are considering India for production. They aim to diversify their supply chains. The government introduced the Production-Linked Incentive (PLI) scheme. It rewards firms for making specific products in India. This scheme, spanning 14 sectors, attracted over ? 950 billion by September 2023.

In April 2021, Bharti Enterprises Ltd. and Dixon Technologies (India) Ltd. joined forces. 
Their aim? To profit from the PLI scheme for telecom and networking products. 

Also, Samsung Display Noida invested Rs 4,825 crore (US$ 650.42 million). This move shifted its mobile and IT display manufacturing from China to Uttar Pradesh. The state government offered special incentives. These investments underscore a growing interest in India as a global manufacturing hub. Supportive government policies and initiatives fuel this trend.?        

Actions Fueling Manufacturing Expansion

PM Modi's Vision for Viksit Bharat

Prime Minister Narendra Modi urged India to reassess outdated beliefs and break free from "professional pessimists" to build a "Viksit Bharat" (Developed India) by 2047. He stressed comprehensive reforms beyond economic changes, advocating for his vision of "reform, perform, and transform" focusing on speed, scale, scope, and standards.

Prime Minister Modi highlighted that India's governance, digital initiatives, and poverty reduction efforts have become models for other countries. As the 21st century looks to India with hope, his vision calls for collective effort, positivity, innovation, and excellence.

By dreaming big and working together, India can achieve its ambitious goals and solidify its position as a global leader.