Manufacturing Sector in India
India ranked 30th on WEF global manufacturing index in 2017-18.

Indian Manufacturing Industry Analysis

Latest update: December, 2018

Growth

 

Last Updated: December, 2018

The Gross Value Added (GVA) from the manufacturing sector is estimated at US$ 390.84 billion in FY18PE. During April-September 2018, GVA from manufacturing at current prices grew 14.8 per cent year-on-year to Rs 138.99 trillion (US$ 198.05 billion). During 2017-18, Index of Industrial Production for manufacturing sector grew 4.50 per cent. India’s Index of Eight Core Industries advanced 4.2 per cent year-on-year during 2017-2018.

Nikkei Manufacturing sector PMI of India increased for the third consecutive month to 54.00 in November 2018 indicating an expansion in the manufacturing sector. The expansion was driven by strong order inflows which led to higher production, input purchasing and employment.

The electronic goods industry is one of the fastest growing industries and is expected to be worth US$ 400 billion by 2020. Government is working on an export-oriented policy for Electronic products. The idea behind this policy is to promote greater exports of electronics and drive larger investments by setting up port-based electronic manufacturing clusters. Also, in October 2018, Ministry of Electronics and Information Technology had released a draft National Policy on Electronics.

The Government of India has been supportive towards this growth. It set up Electronic Hardware Technology Parks (EHTPs), Special Economic Zones (SEZs) and brought about a favourable climate for Foreign Direct Investment (FDI). The government has also increased liberalisation and relaxed tariffs to promote growth in the sector. In addition, it has given the nod to Modified Special Incentive Package Scheme (MSIPS) under which the central government will be offering up to US$ 1.7 billion in benefits to the electronics sector in next five years. Under the scheme, subsidy for investment in capital expenditure is provided to the extent of 20 per cent of investment in SEZs and 25 per cent of investment in non-SEZs.

The growing customer base and the increased penetration in consumer durables segment have provided enough scope for the growth of the Indian electronics sector. Also, digitisation of cable could lead to increased broadband penetration in the country and open up new avenues for companies in the electronics industry.

Note: PE – Provisional Estimate

Indian Manufacturing Sector in India Industry Report (December, 2018)
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Indian Manufacturing Sector in India Industry Report (November, 2018)
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Click to access the Manufacturing Sector in India Industry Archived Report

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