India’s 100th year of independence could see the country becoming the world’s fourth-largest economy with a gross domestic product (GDP) target of $40 trillion, driven by manufacturing. Led by the Aatmanirbhar Bharat mission, production-linked incentive schemes, industrial corridors, mega textile parks, phased manufacturing programme, thrust on electric vehicles and development of coastal economic zones, the share of the manufacturing sector in India’s gross value added is expected to rise to 25% in the medium term in FY31 and 27% by FY48 from around 15.4% in 2021-22. Besides, the National Policy for Advanced Manufacturing will help in the emergence of India as a global manufacturing hub by integrating it more deeply into global supply chains.
Industry has emphasised mandatory skilling and incentives, which clearly link the schemes with adoption of smart manufacturing.
Another shot in the arm for India’s manufacturing sector could come from companies planning to pull out their units from China and looking for alternatives. India could be a preferred destination due to its sustained GDP growth, expanded robust market, enabling environment and transparent open policy regime.
By 2047, India can become the world’s fourth-largest economy and contribute 15% to global GDP. It is also expected to become a manufacturing hub as it is the third most sought after manufacturing destination in the world with the potential to export goods worth $1 trillion by 2030.