Monday, 13 January 2014

Manufacturing Sector in India

Manufacturing: Brief Introduction


According to a study by global management consulting firm McKinsey and Company, the manufacturing sector in India could grow six-fold to US$ 1 trillion, by 2025. The rising demand in the country and the aspirations of multinational companies (MNCs) to establish low-cost plants in India, are seen as reasons for this possible growth. Up to 90 million domestic jobs could be created by that time, with the sector generating about 25–30 per cent of the country’s gross domestic product (GDP). India’s rapidly expanding economy gives domestic entrepreneurs and international players vast opportunities to invest and grow.
India’s manufacturing sector is vital for its economic progress. Its contribution to the GDP is 16 per cent, with the potential to grow more. The government has realized the importance of this sector to the country’s industrial development, and has taken a number of proactive steps to further enhance the industry.
Today, India’s attractiveness as a manufacturing centre for foreign companies is all too apparent. Overseas mobile phone and automobile companies already have manufacturing plants in India. Luxury brands such as Frette and Louis Vuitton are looking to do the same, as is major aircraft maker Airbus.

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