The manufacturing sector is experiencing a robust growth as India has a strong base in engineering and capital goods. Sector’s outlook holds promising future because of high industrial growth, infrastructure development and favourable policies. The business review of various industries shows that with a slew of reforms, the government has been able to put the economy on a growth mode. These reforms have unlocked India’s enormous growth potential and unleashed powerful entrepreneurial forces. To ensure ease-indoing businesses, industrial controls are being attempted to dismantle and massive deregulation of industrial sectors is underway to bring in the element of competition and increase efficiency.
At present, India’s manufacturing sector has a target of contributing 16 percent of GDP to the nation’s exchequer. By 2025, the sector is expected to deliver 25 per cent. It is projected to touch US $1 trillion by 2025 and create up to 90 million domestic jobs. Companies engaged in the engineering sector are virtually on a roll. Capacity creation in sectors like infrastructure, power, mining, oil and gas, refinery, steel, automotive, and consumer durables has been driving demand in the engineering sector.
The Government’s recent pro-industry initiatives and the ambit of ‘Make-in-India’ programme have expanded growth horizons of certain sectors such as MSMEs, which were awaiting the Government’s long-due reformative support. The move aims to fulfill the purpose of job creation, boosting the national economy, converting India into a self-reliant country and to give a boost to domestic manufacturing. The country offers unique advantages to the manufacturing sector. It has favourable demographic dividends for the next 2-3 decades, a sustained availability of quality workforce and a strong consumerism in the domestic market. As such, India is expected to capture the fifth spot in the list of most competitive manufacturing nations in the globe over the next five years. The Micro, Small and Medium Enterprises (MSME) share in India’s GDP and development is phenomenal. MSME sector spearheads the growth in economy, offering opportunities at comparatively lower investment than large industries and helping industrialisation of rural and backward areas, thereby reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs also back the large industries as supply units, thus contributing enormously to the socio-economic development of the country. In order to protect, support and promote small enterprises as also to help them become selfsupporting, a number of protective and promotional measures have been undertaken by the government. These incude industrial extension services, institutional support in respect of credit facilities, provision of developed sites for construction of sheds and assistance for domestic marketing as well as exports.