Way to $ 1 trillion manufacturing economy?

  • Industry News
  • Mar 02,23
In 2021-22, for the first time, India’s exports crossed $ 400 billion and this year, the country has set a target of $ 470 billion (a tall ask given the prevailing external environment).
Way to $ 1 trillion manufacturing economy?

In 2021-22, for the first time, India’s exports crossed $ 400 billion and this year, the country has set a target of $ 470 billion (a tall ask given the prevailing external environment). By 2025, India is expected to become a $ 5 trillion economy with manufacturing sector contributing about 25 per cent of its GDP share. The Government of India (GoI) is giving a boost to manufacturing sector by reducing and simplifying tax regimes, and introducing multiple initiatives, such as the Phased Manufacturing Program (PMP) and Production Linked Incentive (PLI) schemes, etc. GoI is aiming for $ 600 billion of manufacturing exports by FY26, increasing India's export share from 2 per cent to 10 per cent by 2047 and promoting 100 Indian brands as global champions.

The success witnessed in electronics sector suggests things are working on the ground. In case of mobile phone manufacturing, exports have grown from mere $0.1 billion in FY17 to about $ 9 billion this year. The government has now set an ambitious target to increase production in the electronics sector to $ 300 billion by 2025-26, a 26 times increase since 2015-16.

Amid global uncertainty, as manufacturing takes off in India, a large talent pool, digitisation and labour arbitrage will be the key differentiators for the sector. With Industry 4.0 (the operation of machinery with technology connected through the Internet), 5G and other advancements, the next few years will be hugely exciting in the manufacturing space. India has an advantage of the world's largest working-age population who are digitally savvy. India's unparalleled base of technology skills and affordable internet access (at $2.5 per cent month) suit well for digital transformation of industries.

For global majors looking for an alternate sourcing destination, India promises to be a serious contender. While the manufacturing sector in India is expected to grow by 9-10 per cent over the next five years (distinctly much more than many other countries in Asia), it has a huge labour supply at about a quarter of costs compared to China. Given the huge untapped domestic market, India is in a sweet spot today.

Manufacturing, regardless of the stage of development, will always provide a multiplier effect. For the last many years, manufacturing sector's contribution to India's GDP has remained between 15-17 per cent.

In this 51 st Edition of IPF Annual, leading industry experts present their "Vision 2025" to make India a $ 1 trillion manufacturing economy. Experts believe that India has a realistic chance to increase manufacturing sector's contribution to 25 per cent because of some favourable factors such as strong domestic demand, rising export opportunities (due supply chain transformation currently underway globally), India’s ability to attract capital for diverse industrial sectors, and the government’s timely policy interventions. Finally, the push to adopt sustainable solutions and new-age technologies will surely make India a leading powerhouse.

Happy reading!

Related Stories

Other Industrial Products
India’s Top 100 Engineering Companies

India’s Top 100 Engineering Companies

Despite a slowdown in some of the major global markets amid geo-political tensions, India's engineering exports edged up to $ 109 billion in 2023-24 (2.13 per cent more than $ 107.04 billion in 2022..

Read more
Smart Manufacturing
MSMEs' contribution to the GDP

MSMEs' contribution to the GDP

As on 16.07.2024, the total employment reported by the MSMEs on the Udyam Registration Portal (since 01.07.2020 to 16.07.2024) is 203.9 million(including informal micro enterprises registered on Udy..

Read more
Automation & Robotics
Focus on incremental reforms

Focus on incremental reforms

According to a recent report of DSP Mutual Fund, the manufacturing sector's contribution to India's GDP is anticipated to rise from 14 per cent in FY24 to 21 per cent by FY34, bolstered by lower log..

Read more

Related Products

Premium Quality Reduced Head

Industrial Services

Advance Hydrau Components Pvt Ltd offers an array of rivet nut, reduced head.


Read more

Request a Quote

Blended Learning

Industrial Services

Eduquestindia Institute Pvt Ltd offers Blended Learning. There is often a debate around the thought as to which is a better approach to training and development for corporates. On the one hand, the Read more

Request a Quote

Rapid Authoring

Industrial Services

Eduquestindia Institute Pvt Ltd offers Rapid Authoring. The business environment in which the modern day corporates operate is quite intriguing. An increased competition over time has brought in ad Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back