MANUFACTURING SUCCESS STORIES
Beyond Market|October, 2022
Policy reforms and key announcements by the government have turned the tide for the manufacturing sector in India
MANUFACTURING SUCCESS STORIES

India’s manufacturing sector is witnessing secular growth. And it could get better in the coming years on the back of economic growth, supported by favourable policy decisions by the government.

In recent years, the government has been lending support to the manufacturing sector through suitable reforms. More so since India’s manufacturing holds a lot of potential compared to the developed world. With India’s manufacturing supposed to reach 22% - 25% of the GDP, it still offers a growth opportunity worth $1 trillion.

Owing to coronavirus-induced lockdowns and industrial stress, the share of manufacturing has gone down vis-à-vis the services industry. That being said, this offers a potential to the manufacturing sector to stage a comeback in the post-covid era.

POLICY SUPPORT

The government has launched a series of programmes such as Make in India, India 4.0, Production Linked Incentives scheme and Samarth Udyog, among others with the aim of aiding and increasing production domestically.

Never before has there been greater focus on internal development than now, especially in the backdrop of sanctions and conflict in Ukraine now, which has caused supply chain disruptions and hampered energy

production, and the coronavirus pandemic and its ramifications in China and around the world.

Also, announcements are being made to reduce India’s reliance on foreign countries in the area of defence, medical products, energy and other sectors that are crucial to the growth of India’s national security or those that are dependent on other nations.

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