INDIA’S MANUFACTURING SECTOR (Syllabus: GS Paper 3 – Economy)

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Context: Recently, a Ficci survey revealed that India's manufacturing sector experienced an accelerated growth in the June-September quarter of FY24, defying the slowdown seen in developed nations. The findings suggest a positive outlook for the sector in the recently commenced financial year.

Key Points

  • FICCI surveyed 380 manufacturing units covering large small and medium enterprises (SME) with a combined annual turnover of over Rs 4.9 trillion in ten major sectors like automotive and auto components, capital goods, cement, and chemicals.
  • The survey said that electronics and white goods, cement, and automotive and machine tools displayed strong growth and are "clear outperformers".

India's Manufacturing Sector 

  • India’s Status: Ranked as the third most coveted manufacturing destination globally, India possesses the capability to export goods amounting to US$ 1 trillion by the year 2030.
  • Contribution to GDP: The Indian Manufacturing sector currently contributes 16-17% to GDP.
  • Employment: The workforce in India's manufacturing sector has experienced a decline of over 30%, dropping from more than 51 million in 2016 to under 36 million in 2023.
  • Opportunities: India offers the 3 'Ds' for business to thrive— democracy, demography, and demand.
  • GST and improving public spending through infrastructure projects are favorable moves for the sector.
  • The labor-intensive manufacturing sector is the only ray of hope for India to absorb its huge labour force.


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