New Delhi, May 13 (IANS) India’s industry sector is expected to outpace agriculture to take a larger share in the GDP (30-32 per cent) by 2035 and opening a $3 trillion opportunity, driven majorly by manufacturing, a report showed on Tuesday.
Manufacturing is expected to emerge as the growth leader taking two-third share of industrials and more than 20 per cent share of the GDP by 2035.
Higher domestic consumption with increasing per capita income and a target of $1 trillion merchandise exports are expected to drive this growth, according to the report by Omniscience Capital.
The manufacturing sector is pivotal to India’s economic growth, significantly contributing to the nation’s GDP. Currently, it stands as one of India’s key growth sectors, catering to both domestic and international markets.
Government initiatives such as the Production-Linked Incentive (PLI) scheme, ‘Make in India’ campaign, liberalised Foreign Direct Investment (FDI) policy, public-private partnership (PPP) models for various public undertakings, and infrastructure development are fuelling this growth.
To achieve India’s ambitious $1 trillion merchandise export target by 2030, the merchandise exports should increase from the current $450 billion to $1 trillion, requiring a year-on-year growth rate of 12 per cent, the report mentioned.
India’s share in global merchandise exports has doubled from 0.9 per cent share in 2005 to 1.8 per cent in 2023. India’s merchandise exports have grown at a 3-year CAGR of 18.8 per cent from FY21 to FY24 and a 5-year CAGR of 9.4 per cent from FY19 to FY24.
“India is poised to continue emerging as a preferred destination for manufacturing investments due to the availability of raw materials, low labour costs, a favourable corporate tax rate for manufacturing, and proactive government support through incentives,” said Ashwini Shami, EVP and Portfolio Manager at OmniScience Capital.
The government is developing 11 industrial corridor projects under the National Industrial Corridor Development Programme (NICDP) across the country in four phases.
As of July 31, 2023, the DPIIT has sanctioned and released Rs 9,900 crore for the industrial corridor project, with Rs 9,817 crore already utilised. This is expected to create 1 million direct jobs and up to 3 million indirect jobs, contributing to socio-economic upliftment.
–IANS
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