New Delhi: After 25 years i.e. on completion of 100 years of independence, India will not only celebrate the centenary year but will lead the world. Recently India overtook the UK to become the world’s fifth largest economy and it is expected that by the year 2047, India will achieve a GDP of over $15 trillion to become the third largest economy. You can get an idea of India’s global picture from the fact that India is the only country whose economy is growing rapidly amidst the global recession. This is definitely a ray of hope for manufacturing businesses not only in India but across the globe.
If India wants to reach the estimated target of 20 trillion dollars by the year 2047, it is very important for it to grow the manufacturing sector. This journey of India with its right decisions and right measures and strict implementation, India’s manufacturing sector can reach 4.5 trillion dollars and its GDP share is 22 percent.
For India to grow in manufacturing, the most important thing is to future-proof its infrastructure and reduce logistics costs. With an investment of $1.2 billion in India for industry-specific businesses, India aims to reduce logistics costs to 8 percent of GDP by 2030.
To reduce logistics costs, the central government has launched the National Logistics Policy last year itself, so as to reduce the cost of transportation of goods leaving the factory. Apart from this, Indian traders can easily sell their goods internationally at lower prices. India has vast experience in pharmaceuticals, chemicals, textiles and apparel and automotive. However, the difference is clearly visible in terms of mega-scale facilities. Considering this gap, India needs to focus on the experiential sector in which it has expertise so that no other country leads in these areas.
India currently does not have much experience in renewable energy, aerospace and hi-tech semiconductors, but the government has started thinking in this direction as well, resulting in global companies now agreeing to manufacture in India. Big companies like Apple, Samsung are now slowly selling their products all over the world from India.
India needs to pay special attention to the next generation sector in which tech is going to contribute a lot. India needs to focus on encouraging private investment as well as R&D, technology transfer, global linkages and collaboration between academia, industry and government to build a solid foundation. If India is to move forward in the manufacturing sector, the country is in dire need of an industry-ready workforce. For this, institutions need to focus on curriculum, skill development, so that the next generation is industry ready and able to support production.