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Capital-intensive industries drive employment growth in India: Goldman Sachs
Industry News- Nov 05,24
India’s manufacturing transformation is being fuelled by reforms, including the Production-Linked Incentive (PLI) schemes, which have played a pivotal role in increasing domestic production, fostering technological progress, and drawing both foreign and local investments.
Over the past decade, India’s capital-intensive sectors, including electronics, chemicals, and machinery manufacturing, have shown significant growth in employment and exports, according to a report from Goldman Sachs. This surge reflects the impact of government initiatives aimed at promoting high-value manufacturing, which has enabled exports to developed markets to achieve double-digit growth, boosting India's high-value export portfolio.
The report highlights that capital-intensive sectors have outpaced labour-intensive industries in employment growth. Defined as sectors with a capital income share of 0.65 or more, industries like chemicals and machinery have seen greater employment gains compared to labour-intensive sectors such as textiles, footwear, and food processing. Nevertheless, labour-intensive industries still hold a larger share of total jobs across the country.
India’s manufacturing transformation is being fuelled by reforms, including the Production-Linked Incentive (PLI) schemes, which have played a pivotal role in increasing domestic production, fostering technological progress, and drawing both foreign and local investments. Introduced in 2020, the PLI schemes, with an outlay of Rs 1.97 trillion, cover 14 critical sectors, including electronics, pharmaceuticals, and specialty steel. They aim to expand production capacity, create jobs, and reduce import dependency in alignment with the Atmanirbhar Bharat initiative and the Viksit Bharat 2047 vision.
As of June 2024, the PLI schemes have attracted Rs 1.32 trillion in investments, contributed Rs 10.9 trillion in manufacturing output, and generated 850,000 direct and indirect jobs. These schemes have also contributed Rs 4 trillion to exports, underscoring India's growing influence on the global manufacturing stage.
(Odisha TV)
Goldman Sachs
indian manufacturing
PLI
capital-intensive sectors
Viksit Bharat 2047
Atmanirbhar Bharat
manufacturing
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