kdclglobal

1
Indian Manufacturing Sector at ENGIMACH 2021 A
Shining Light Industrial manufacturing has
emerged as one of the highest growing sectors in
India. Developing through various stages over
the period since Indian independence in 1947,
from building the industrial foundation in the
1950s and early 1960s to the license-permit raj
between 1965 - 1980 to the liberalization of
1990s, it is positioned strongly in global
competitiveness with a scope of
expansion. Indias Manufacturing Sector Today
With several companies engaged in manufacturing
of machinery and equipment, electronics and
electrical products, building and construction
material, rubber, plastic and metals products and
automation technology products - budding and
growing in the Indian market, we stand at the
turning point of our economic regrowth with a
belief in the manufacturing industry to be the
ladder to it. The sector contributes 14 to the
Indian GDP and employed 12 (2014) of the
countrys workforce. As per the annual national
income published by the Government of India, the
Gross Value Added (GVA) at the basic current
prices from the manufacturing sector in India
grew at a CAGR of 50 between FY16 and FY20. It
is to be estimated at 397.14 billion in FY20PE.
According to the Ministry of Statistics
Programme Implementation, Indias industrial
output, measured by IIP, rose by 3.6 y-o-y in
October 2020. Merchandise export decreased 4.78
y-o-y to reach US 314.31 billion in FY20, while
(Purchasing Managers Index) PMI stood at 58.9 in
October 2020 from 56.8 in September, signifying
strong growth in the manufacturing sector,
despite losing traction. Records also reflect
strong growth in the production of basic metals
(10.8), intermediate
2
goods (8.8), food products (2.7) and tobacco
products (2.9). Global giants like GE, Siemens,
Toshiba, etc have set up new manufacturing plants
or are raring to, and hold an increasing capacity
to spend to localize their offers. Companies
including Samsung, Foxconn, and Wistron Corp.,
have also pledged 1.5 billion worth of
investments to set up mobile phone factories in
India. Scope of Growth for the Indian
Manufacturing Sector
When COVID led the world to a setback with its
economy, the Indian manufacturing sector
generated 17.4 of Indias GDP. The triple play
of 3Es Economy, Employment and Efficiency - are
the key push to the sector. In a country with
manufacturing employment in need of a
sustainable growth but at a sharp fall with about
2 million jobs lost, the sectors can achieve
inclusive growth by having each job leading to
2-3 jobs in the services. The gap between the
skilled workers and the requirement to perform
new tasks is yet a major factor contributing to
the decline. Job Opening and Labor Turnover
Survey states the opening rates to have nearly
doubled, while the construction industry which
generally employs low-skilled labour saw a
minimal growth of 0.17 over the same.
Cross-regional migration and mobility that the
pandemic has restricted today have made job
seekers irresolute to move in the search of jobs.
Vacancies relatedly remain unfilled for a long
time due to lag in supply chain management,
transportation, production planning and
maintenance. Since most of these are still
bouncing back, the large labour pool of
employment is filling. Government Initiatives
for Manufacturing Growth Manufacturing is
rightfully at the centre-place of the GOIs
vision for Make In India (MII), which is to
increase the contribution of manufacturing to GDP
to 25. With a view of promoting the growth of
the manufacturing sector, Indian Prime Minister,
Narendra Modi, states the pandemic
3
to be the period of opportunity revitalized under
the crisis, and its time we can claim a place in
the world by becoming the global epicenter for
hi-tech manufacturing to inherit growth. While
presenting the Union Budget 2021-22, Union
Finance Minister Nirmala Sitharaman wished to
give the manufacturing sector a push. The
Finance Minister committed an infusion of ?1.97
lakh crore into the sector. The governments
Performance Linked Incentive (PLI) scheme has the
capacity of creating approximately 1.40 crore
man-months of additional workers. Other
initiatives like reduction in Corporate Tax
Rates have also been implemented where the tax
rates for corporates would be now payable at
22. ENGIMACH-2021 Reviving Manufacturing
Growth Growth in manufacturing is crucial for
Indias economic development as it has the
potential to provide large-scale employment to
the young population enabling a significant
section to move out of poverty. By 2030, the
Indian middle class is expected to have the
second-largest share in global consumption and
this can help the country achieve its
manufacturing potential as it looks to benefit
from its demographic dividend and a large
workforce over the next two to three decades. As
the market keeps unpredictably pacing towards
growing, it is the need of the moment to stay
cognizant of the on-goings. K and D
Communications brainchild ENGIMACH, offers
a launchpad for new ideas, products and services,
and a conducive environment for forging joint
ventures and collaborations with over 1,00,000
business visitors, corporate intrapreneurs,
savvy technocrats, ancillary producers, product
manufacturers and beneficiaries in the
Engineering Machine Tools Industry. Register
for ENGIMACH 2021 to follow the trends,
innovations and developments in the engineering
and machine tool industry.