 "Manufacturing to account for 25% of economy by 2025: Report")
Aided by government reforms, India is expected to realise the target of 25 percent share of manufacturing in overall economy by 2025, as per the Dun &Bradstreet’s new report, ‘Manufacturing India 2025’. The Make in India initiative of the Government, according to the report, is expected to be a vital component in India’s quest for establishing itself as a global manufacturing hub.
The reported added that the government’s strong intent to revive India’s manufacturing sector should be able to crowd-in private investment in the coming years. While services sector will continue to drive India’s growth momentum, the industrial sector is expected to witness double-digit growth and its share estimated to increase from 31.4 percent in FY15 to 37.6 percent in FY25.
“Enhancing the share of manufacturing to 25 percent of overall economy would, however, require conducive business environment, investment to support innovation, capital and labour efficiency, shift from low value added sectors towards high value added sectors, efficient business processes, presence of supporting industries along with continued policy thrust amongst other measures,” said Dr Arun Singh, senior economist, Dun & Bradstreet India.
Dr Singh added, “Dun &Bradstreet expects that the future holds much more promise for the Indian economy in the next decade. We believe the on-going reform efforts by the Government needs to be supplemented with appropriate implementations along with overhauling some of the fundamental factors such as labour laws, poor infrastructure along with tax policies that have held back India’s growth potential. This would provide the much awaited ‘big push’ to the Indian economy during the next decade.”
The reported added that the government’s strong intent to revive India’s manufacturing sector should be able to crowd-in private investment in the coming years. While services sector will continue to drive India’s growth momentum, the industrial sector is expected to witness double-digit growth and its share estimated to increase from 31.4 percent in FY15 to 37.6 percent in FY25.
“Enhancing the share of manufacturing to 25 percent of overall economy would, however, require conducive business environment, investment to support innovation, capital and labour efficiency, shift from low value added sectors towards high value added sectors, efficient business processes, presence of supporting industries along with continued policy thrust amongst other measures,” said Dr Arun Singh, senior economist, Dun & Bradstreet India.
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The Indian economy is anticipated to reach close to $ 7 trillion by 2025. The strong accent on infrastructure and institutional capacity creation by the current government is expected to be the major growth driver for the Indian economy in the next decade.
Dr Singh added, “Dun &Bradstreet expects that the future holds much more promise for the Indian economy in the next decade. We believe the on-going reform efforts by the Government needs to be supplemented with appropriate implementations along with overhauling some of the fundamental factors such as labour laws, poor infrastructure along with tax policies that have held back India’s growth potential. This would provide the much awaited ‘big push’ to the Indian economy during the next decade.”