NEW DELHI: India is expected to scale up its manufacturing exports to $1 trillion by fiscal year 2027-28 amid favourable trends in manufacturing and growth in priority sectors, said Bain & Company in a report titled, The Trillion-Dollar Manufacturing Exports Opportunity for India'.
The six sectors driving export growth will be chemicals, auto, electronics, pharmaceuticals, textiles and industrial machinery.
To capitalise on this opportunity, Indian companies need to focus on having a clear export strategy, the right execution chops, the right partnerships for enabling exports, and an optimal capital expenditure (capex) efficiency focus to build manufacturing capacity, said Bain and Company.
With growing interest in electric vehicles, the automotive sector will see electric vehicles and components contributing up to $5 billion to this export growth.
According to the report, India’s export growth has been propelled by six megatrends that got fast-tracked during the last two years. These include supply chain diversification, advantages for India in certain manufacturing sectors, government initiatives to bolster manufacturing in the country, capital expenditure infusion into manufacturing sectors, heightened merger and acquisition (M&A) activity, and private equity/venture capital (PE/VC)-led investment in manufacturing.
The trillion dollar opportunity
Despite being the sixth-largest economy in the world and contributing 3.1% to the world GDP, India’s export contribution to global trade is only 1.6%. In contrast, China's contribution to global trade is 15%, while that of the US stands at 8.3%, Germany at 7.9%, Japan at 3.7% and UK at 2.3%.
However, India’s manufacturing exports for FY21-22 reached an unprecedented $418 billion, an overall growth of more than 40% compared to the $290 billion from the previous year and the prepandemic peak of $328 billion in FY18-19.
Read More at https://timesofindia.indiatimes.com/business/india-business/indias-manufacturing-exports-to-reach-1-trillion-by-fy28-report/articleshow/92845170.cms?NEW DELHI: India is expected to scale up its manufacturing exports to $1 trillion by fiscal year 2027-28 amid favourable trends in manufacturing and growth in priority sectors, said Bain & Company in a report titled, The Trillion-Dollar Manufacturing Exports Opportunity for India'.
The six sectors driving export growth will be chemicals, auto, electronics, pharmaceuticals, textiles and industrial machinery.
To capitalise on this opportunity, Indian companies need to focus on having a clear export strategy, the right execution chops, the right partnerships for enabling exports, and an optimal capital expenditure (capex) efficiency focus to build manufacturing capacity, said Bain and Company.
With growing interest in electric vehicles, the automotive sector will see electric vehicles and components contributing up to $5 billion to this export growth.
According to the report, India’s export growth has been propelled by six megatrends that got fast-tracked during the last two years. These include supply chain diversification, advantages for India in certain manufacturing sectors, government initiatives to bolster manufacturing in the country, capital expenditure infusion into manufacturing sectors, heightened merger and acquisition (M&A) activity, and private equity/venture capital (PE/VC)-led investment in manufacturing.
The trillion dollar opportunity
Despite being the sixth-largest economy in the world and contributing 3.1% to the world GDP, India’s export contribution to global trade is only 1.6%. In contrast, China's contribution to global trade is 15%, while that of the US stands at 8.3%, Germany at 7.9%, Japan at 3.7% and UK at 2.3%.
However, India’s manufacturing exports for FY21-22 reached an unprecedented $418 billion, an overall growth of more than 40% compared to the $290 billion from the previous year and the prepandemic peak of $328 billion in FY18-19.
Read More at https://timesofindia.indiatimes.com/business/india-business/indias-manufacturing-exports-to-reach-1-trillion-by-fy28-report/articleshow/92845170.cms?
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