Manufacturing has emerged as one of the high growth sectors in India. Honorable Prime Minister of India, Shri Narendra Modi, had launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy.
India’s ranking among the world’s 10 largest manufacturing countries has improved by three places to sixth position in 2015.
The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25% of Gross Domestic Product (GDP) by 2025, from 16% currently.
India’s manufacturing sector has the potential to touch US$ 1 trillion by 2025. There is potential for the sector to account for 25-30% of the country’s GDP and create up to 90 million domestic jobs by 2025. Business conditions in the Indian manufacturing sector continue to remain positive.
In September 2016, Foreign Direct Investment (FDI) in electronic manufacturing has reached an all-time high of Rs. 123,000 crore (US$ 18.36 billion) in 2016, from Rs. 11,000 crore (US$ 1.65 billion) in 2014; on the back of enabling policies of the government and its “Make in India” initiative.
India has become one of the most attractive destinations for investments in the manufacturing sector.