Last Updated: November 27, 2015
Chairman, General Electric
Last Updated: September, 2015
CHEMICALS SECTOR REPORT | August, 2015
ELECTRONICS SECTOR REPORT | August, 2015
The Prime Minister of India, Mr Narendra Modi, has launched the ‘Make in India’ initiative to place India on the world map as a manufacturing hub and give global recognition to the Indian economy.
The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per cent currently.
India’s manufacturing sector could touch US$ 1 trillion by 2025. There is potential for the sector to account for 25-30 per cent of the country’s GDP and create up to 90 million domestic jobs by 2025.iBusiness conditions in the Indian manufacturing sector continue to remain positive.
In August 2015, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) stood at 52.3, thanks to a sharp increase in buying levels coupled with a record drop in stocks of finished goods. The composite PMI that combines both services and manufacturing sectors was at a five month high of 52.6 points in August 2015.
In a major boost to the 'Make in India' initiative, the Government of India has received investment proposals of over Rs 1,10,000 crore (US$ 16.56 billion) in the last 12 months from various companies including Airbus, Phillips, Thomson, Samsung, LG and Flextronics among others.
India has become one of the most attractive destinations for investments in the manufacturing sector. Some of the major investments and developments in this sector in the recent past are:
In a bid to push the 'Make in India' initiative to the global level, Mr Narendra Modi, Prime Minister of India, pitched India as a manufacturing destination at the World International Fair in Germany's Hannover earlier this year. Mr Modi showcased India as a business friendly destination to attract foreign businesses to invest and manufacture in the country.
The Government of India has taken several initiatives to promote a healthy environment for the growth of manufacturing sector in the country. Some of the notable initiatives and developments are:
The Government of India has an ambitious plan to locally manufacture as many as 181 products. The move could help infrastructure sectors such as power, oil and gas, and automobile manufacturing that require large capital expenditure and revive the Rs 1,85,000 crore (US$ 27.85 billion) Indian capital goods business.
India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country.
With impetus on developing industrial corridors and smart cities, the government aims to ensure holistic development of the nation. The corridors would further assist in integrating, monitoring and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.
Exchange Rate Used: INR 1 = US$ 0.01505 as on September 15, 2015
References: Media Reports, Press Releases, Press Information Bureau, McKinsey & Company
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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