Manufacturing has emerged as one of the premium growth sectors in India. Prime Minister Narendra Modi launched the ‘Make in India’ initiative in 2014 that aimed to recognize India as a manufacturing hub of the world. India is expected to become the 5th largest manufacturing country globally by the end of 2020. Government aims to achieve 25% GDP share and 100 million new jobs by 2022.
India is on the path of becoming the hub for hi-tech manufacturing, as global giants such as GE, Siemens, HTC, Toshiba, and Boeing have either set up or are in process of setting up manufacturing plants in India. The Indian market has become attractive since more than a billion consumers with high purchasing power and increased ease in doing business has been successful in retaining the current manufacturers.
Cumulative Foreign Direct Investment (FDI) in India’s manufacturing sector reached US$ 91.20 billion during April 2000-June 2019. India has become one of the most attractive destinations for investments in the manufacturing sector. In September 2019, Mumbai got its first metro coach manufactured by state-run Bharat Earth Movers (BEML) under 'Make-in-India' initiative. OnePlus launched its smart TVs in the Indian market which became a huge hit. In August 2019, Vivo planned to invest around Rs 3,500 crore (US$ 480 million) in India for capacity expansion which also contributed to job creation. Filatex India, a polymer manufacturer, planned to undertake forward integration by setting up a fabric manufacturing and processing unit. In August 2018, IISC’s Society of Innovation and Development (SID) and WIPRO 3D collaborated to produce India’s first industrial level 3D printing machine. For commercial vehicles production, Ashok Leyland utilized machine learning algorithms and its newly created telematics unit to improve the performance of their product.
Government of India is making various concrete steps in developing industrial corridors and smart cities for holistic development of the nation. As student of Calcutta Business School, I would like to conclude by saying that since the present government came to power in 2014, we have seen number of initiatives in manufacturing industry which has contributed immensely towards the improvement of India’s rank in ease of handling business index which shows that the initiatives are working positively and promoting the FDI inflow.
PGDM batch 2019-2021