India's manufacturing sector needs 14-15% annual growth

15 Sep '17

2 min read

India’s manufacturing needs to steadily grow at 14–15 per cent every year over the next three decades for the country to maintain a sustained annual GDP growth of 9-10 per cent, observed a recent study jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global professional services organisation EY.

States, based on their own manufacturing goals, must individually look into bureaucratic hurdles and other obstructive regulations and policies on priority, the study titled ‘Sustaining India’s growth by accelerating manufacturing’ said.

States can grow by focussing on industries in which they have a competitive edge in raw material availability, demand, user industries, logistics and availability of skilled manpower, besides geographical location, an ASSOCHAM news release said quoting the report. States may set up new industries or create ancillary facilities and infrastructure.

“Robust domestic demand, improved FDI (foreign direct investment), increase in exports, higher infrastructure spending and capital formation, supportive fiscal and monetary policies suggest India’s manufacturing sector is headed for a robust growth,” said the report.

The government's ‘Make in India’ initiative will help elevate the country’s manufacturing sector as it aims to increase the share of manufacturing in the GDP to 25 per cent from the current 16 per cent and to create 100 million new jobs by 2022, the report added. (DS)

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