It is expected that India will increase the share of manufacturing in the overall economy to 25 per cent by 2025 from the current 16 per cent on account of various measures taken by the government, Dun & Bradstreet said today.
If the Indian manufacturing companies wish to stay competitive at the higher ends of the value chain they will have to adapt and increase their focus on developing advanced manufacturing capabilities.
Indian manufacturing companies will have to adapt and increase their focus on developing advanced manufacturing capabilities if they wish to stay competitive at the higher ends of the value chain, he added.
The various steps taken by the government in terms of measures for ease of doing business, creation of conducive environment for the manufacturing activities, focus on improving industrial policies and FDI enhancement would aid in reviving the manufacturing sector and achieving global competitiveness, it said in a statement.
Arun Singh, Lead Economist, Dun & Bradstreet India, said :
“We expect India to realise the target of 25 per cent share of manufacturing in overall economy at best by 2025. Going forward, changing economics of production and distribution and frequent shifts in consumer demand will require manufacturers to adopt new process and make new products.”
He further added that
“Indian manufacturing companies will have to adapt and increase their focus on developing advanced manufacturing capabilities if they wish to stay competitive at the higher ends of the value chain.”
Singh also said that consumption as well as investment demand is likely to remain healthy, support overall growth momentum and push India’s nominal GDP to reach USD 6.4 trillion by FY 2025 with real Gross Value Added expected to grow at an average rate of 7.9 per cent till FY 2025.
The manufacturing sector is expected to be the major driver of growth in the coming decade, he said.
Dun & Bradstreet’s “Manufacturing India 2025” report was released by Amitabh Kant, Chief Executive Officer, NITI Aayog.
Source : http://www.financialexpress.com/economy/indian-economy-can-25-share-manufacturing-2025-report/