MAN­U­FAC­TUR­ING EX­CEL­LENCE

The Economic Times - - Economy: Macro, Micro & More -

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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.

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