India is going to be 3rd largest economy by 2027, reach $7 trillion by 2030
James Sullivan, the managing director of Asia Pacific Equity Research at JP Morgan sees Indian economy doubling to $7 trillion by 2030 with contribution from manufacturing rising to nearly 25% from 17% and exports will double, to be trillion dollars.
As Indian economy will see massive structural changes in long term, where sectoral opportunities will evolve drastically
India has emerged as fastest growing manufacturing sector due to rapid increasing population in the country. Investment in India is rising as "Make in India" derive aim to be next manufacturing hub. Manufacturing industry growth percent was at 4.7 in FY23. FDI investment hitting $17.51 billion in FY20-21.
India manufacturing sector has seen tremendous growth with FDI investment $17.51 billion in FY20-21. This showcases the heightened global investor confidence. "Make in India" initiatives will boost domestic manufacturing as well as government policies like PLI. Performance linked incentive will support manufacturing industries to grow like automobiles, electronics, and textiles.
Also, government initiatives like Bharatmala Pariyojana Project, and the National Logistics Policy, the proposed DESH Bill, supported to increase opportunities to industries.
manufacturing sector contributed around 17 per cent to the GDP pre covid, the manufacturing sector is poised to grow to 21 per cent in the next 6-7 years, showcasing India's prospective to nourished its position in global supply chains.
A per the National Manufacturing Policy India increasing investment in manufacturing sector.
Various major steps have been taken by the govt. to promote manufacturing sector and to uplift domestic and foreign investments in India. These include introduction of Goods and Services Tax, reduction in corporate tax, interventions to improve ease of doing business, FDI policy reforms, measures for reduction in compliance burden, through public procurement orders, Phased Manufacturing Programs (PMP), some policy measures have been initiated to boost domestic manufacturing.
Government reforms initiatives have resulted in increased Foreign Direct Investment (FDI) inflows in the country. FDI inflows in India was at US $ 45.15 billion in 2014-2015 and India has registered highest annual FDI inflow of US$ 84.84 billion (provisional figures) in FY 2021-22
Indian manufacturing still facing some major constrain to grow like - poor core infrastructure, lethargic bureaucracy, high cost of capital, an agonizing land acquisition process and labour issues. Earlier also manufacturing initiative taken by SEZs but with only limited success. Due to inadequate land acquisition reforms, and lack of power and logistics infrastructure. The services sector including IT/ITES has shown healthy growth track, was the only real beneficiary of SEZs. India has to uplift global competitiveness of manufacturing sector for the country’s long-term growth. The National Manufacturing Policy (NMP) has taken comprehensive and significant policy initiative in same way. A decade late in arriving by some accounts, the policy seeks to increase manufacturing growth rate from 9% (in the last five years) to 12% to 15% over the medium-term period. The aim is to push manufacturing’s contribution to GDP from the present 15% to 21% by 2030. In doing so, the policy intends to create an additional 100 million jobs and support required skills development programs. Major objectives of the policy are formation of National Investment and Manufacturing Zones (NIMZs), development of Small and Medium Enterprises (SMEs), implementation of industrial training and other skill upgradation measures, Promotion of Green Manufacturing, and Rationalization and simplification of business regulations. Besides, the policy also dwells upon improvement of core infrastructure, creation of financial and to boost global competitiveness of Indian manufacturing sector many initiatives has been taken to increase domestic production capacity to enhance exports and to boost technology development.
India has seen tremendous export growth in last two years. India has reached $418 billion of manufacturing exports in the fiscal year FY22. India export contributes mere 1.6% to the world, has huge potential to grow. By 2028, exports from manufacturing are expected to reach 1 trillion. Manufacturing sector contribution to GDP in India is estimated to increase from 15.6% currently to 21% by 2031—and which would double India’s export market share. Govt's uniform interest scheme, which has made credit available for exporters.
Indian middle class global consumption would be 17% second largest share by 2030.
By 2030, manufacturing sector will be driven by advanced technologies such as automation, robotics, 3D printing, and nanotechnology. These technological advancements will revolutionize production processes, reduce costs, improve quality and precision, and increase the sector's global competitiveness.