industry analysis

manufacturing

overview

The Manufacturing Industry

Manufacturing Industry in India has gone through various phases of development since independence in 1947 and is a major growth sector for the Indian economy with diverse companies including those engaged in manufacturing of machinery and equipment, electrical and metal products, cement, building and construction material, rubber and plastic products and automation technology products

The Indian Manufacturing sector currently contributes 16-17% to GDP and gives employment to around 12% (2014) of the country’s workforce. Various studies have estimated that every job created in manufacturing has a multiplier effect in creating 2–3 jobs in the services sector. In a country like India, where employment generation is one of the key policy issues, this makes this sector a critical one to achieve inclusive growth. Today’s Manufacturing plants are not isolated from the end to end supply chain which consists of Plan, Source, Make and Deliver.

Manufacturing is thus rightfully at the center-place of the Hon’ble Prime Minister’s Vision for Make In India (MII), which is to increase contribution of manufacturing to GDP to 25%.

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