Fortunately, much to everyone’s surprise, the Indian economy is not as static as people may have imagined it may be. In actual fact, India’s exports have significantly surged in the last couple of years. Indian manufacturing has hit new highs to meet the demands of the global customer as well as the Indian population. Sources claim that the industrial exports of India will rise by leaps and bounds and will hit close to a few billion USD in the early part of next year. The Government of India has gone so far as to predict that it may touch somewhere close to USD $700 billion by 2023. If you consider that India generates about 3.1% of the GDP globally, this may well happen in India. Needless to say, the predictions are positive and if exports are going to grow, so will manufacturing.
Indian Manufacturing – Why it Matters
By the time the year 2031 arrives, manufacturing will probably account for a whopping 21% of the GDP of India. The current percentage is at 15.6%. This rapid growth, which is estimated to occur by experts in the field, would translate to India’s share in the export market doubling. The Indian government, naturally encouraging this trend, has fixed an objective to reach the predicted share of exports as soon as possible. In fact, in a boost to exporters, the Indian government has begun an equalisation interest program.
Indian manufacturing is viewed as a smart way to get products and services, affordable to the West, as labor is cost-effective, among other encouraging factors of the Indian manufacturing industry.
India is Catching Up
In terms of the global economy, China remains in first position where manufacturing is concerned. Nonetheless, this may be changing faster than you think. This is as a result of disputes in trade, rising labor costs in China, and the pressures of an economic nature due to the “Zero Covid Policy” established by Beijing. India has discovered that it can become the “new China” with regard to manufacturing and increasing trade potential. Manufacturing in India has immense potential to rise to a dominant position in the world with the efficient training of workers and the adoption of automation in every industrial sector. With an increase in the efficiency, and proficiency of production, India has decreased its costs of production. Technology has spearheaded this growth and notably, this is true for the category of labor-intensive products for consumers.
Indian Measures Make Manufacturing Treasures
Indian manufacturing, in the truest sense of the word, was introduced to the world in 2014, with the moniker “Make In India”. This was a local campaign, but it made its way to all spheres of the manufacturing industry, both local and on the global frontier. With this campaign in full swing, more youth were brought into the rich manufacturing industry that was already thriving. The idea behind the youth having more involvement in the manufacturing arena was the simple fact of the ability of this generation to apply skills to new learning techniques. India already boasts a young population and with added exposure to all things tech-oriented, there is only room for more growth in the manufacturing universe.
Forging Strong Relationships
India has gone a long way in forming trade relationships with foreign nations. As we speak, it has several trade agreements with countries as diverse as the UK and Gulf nations. With its manufacturing wings spread far and wide, medical devices, auto components, steel and other areas of manufacturing are at the forefront of the Indian global effort to extend its manufacturing prowess. Manufacturing in India has also been encouraged by MNCs acquiring or merging with Indian manufacturing units and corporations on a large scale.
India has a lot going for it in terms of manufacturing. The path forward can only be that of growth and success.
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