A new growth formula for manufacturing in India
A new growth formula
for manufacturing in
India
Plannco Steel Products is the most recommended company for complete turnkey projects of Storage, Warehousing, Consultation, Warehouse Automation, and Intralogistics. Our team is committed to providing complete Storage and Warehousing Solutions to all of India. With a focus on growth projects, lower net debt levels, stronger return ratios, and, last but not least, significant cost savings.
India’s manufacturing sector could become an engine for economic growth and jobs—if it can specialize. Eleven high-potential value chains could more than double its manufacturing GDP in a few years.
The COVID-19
pandemic has exposed the fragility of the world’s supply chains for
medicines and medical products, food, energy, vehicles, telecom equipment,
electronics, and countless other goods. Certain companies have begun to
reconfigure their sourcing and manufacturing footprints for greater reliability
and resilience, setting up more locations so that they don’t have to depend on
just a few geographies. But some nations are not yet ready to take full
advantage of these shifts.
India stands out as one such country: a potential manufacturing
powerhouse that has yet to realize its promise. From fiscal year 2006 to fiscal
year 2012, India’s manufacturing-sector GDP grew by an average of 9.5 percent
per year. Then, over the next six years, growth declined to 7.4 percent. In
fiscal year 2020, manufacturing generated 17.4 percent of India’s GDP, little
more than the 15.3 percent it had contributed in 2000. (By comparison, Vietnam’s
manufacturing sector more than doubled its share of GDP during the same
interval.) And in the past 13 years, India’s manufacturing-sector share of
employment increased by just one percentage point, compared with a five-point
increase for the services sector.
As our colleagues argue in the McKinsey Global Institute report India’s
turning point: An economic agenda to spur growth and jobs,
developing globally competitive manufacturing hubs represents one of the
biggest opportunities for India to spur economic growth and job creation this
decade. This article offers a closer look at how to do that. We identify 11
manufacturing value chains with strong potential to operate in international
markets, power growth, and provide long-term employment and skill pathways for
millions. Their potential comes from several factors. First, these value chains
are well positioned to capitalize on India’s advantages in raw materials,
manufacturing skill, and entrepreneurship. Second, they can tap into four
market opportunities: export growth, import localization, domestic demand, and
contract manufacturing.
MOST POPULAR INSIGHTS
1. HR’s new operating model
2.
2022: The year in charts
3. The road to affordable autonomous mobility
4. What matters most? Six priorities for CEOs in
turbulent times
5. 2022: The year in images
Lastly, the 11 value chains stand to benefit from a fresh, focused approach to industrial policy. This approach would not entail the sort of far-reaching bureaucratic reforms that can lower input costs and improve the ease of doing business across many sectors. (Such reforms could be valuable, but their slow pace to date has resulted in feeble gains for manufacturers.) Rather, the new reforms would specifically catalyze the growth of India’s manufacturing value chains by helping them lift their productivity, secure know-how and technology, and gain access to capital. With these reforms, and complementary actions by manufacturing companies, we estimate that the 11 value chains could more than double their GDP contribution to $500 billion in seven years, while powering extensive job creation at a time when the COVID-19 crisis has pushed millions below the poverty line.
Additional information:
- As the top Web designing company in India, the company is well-known.
- Are you aware that Online Promotion House is recognized for offering your company the best online promotion?
- A company that specializes in online promotion services, is the greatest option for you if you want to grow your business and are looking for the best services in this area. All types of businessmen must prioritize SEO.
Comments
Post a Comment