The sector’s Gross Value Added (GVA) at current prices was estimated at US$ 350.27 billion as per the first advanced estimate of FY21. The manufacturing GVA accounts for 19% of the country's real gross value added. The IHS Markit India Manufacturing Purchasing Managers Index (PMI) increased to 57.7 in January 2021 from 56.4 in December 2020.
As per the latest survey, capacity utilisation in India’s manufacturing sector stood at 63.3% in the second quarter of FY21.
According to the Ministry of Statistics & Programme Implementation, India’s industrial output, measured by the Index of Industrial Production (IIP), stood at 135.2 in January 2021. In January 2021, industrial output indices for the mining, manufacturing and electricity sectors stood at 119.7, 135.1 and 164.2, respectively.
Overall merchandise exports stood at US$ 200.80 billion between April 2020 and December 2020.
The electronic goods industry is one of the fastest growing industries and was expected to be worth Rs. 27.96 lakh crore (US$ 400 billion) by 2020. The Government is working on an export-oriented policy for electronic products. The idea behind this policy is to promote greater export of electronics and drive larger investments by setting up port-based electronic manufacturing clusters.
The Union Budget 2021-22 is expected to enhance India’s domestic growth in manufacturing, trade and other sectors. Development of a robust infrastructure, logistics and utility environment for the manufacturing sector is a primary focus field.
Some of these initiatives are as follows:
Make in India 2.0 presently focuses on 27 sectors. The Government of India is continuously focusing on facilitating investment and establishing schemes to boost domestic investments in India. These include the following: