Manufacturing Sectors in India: Remarkable

Manufacturing Sectors in India, India is fast becoming one of the most lucrative options for the manufacturing industry to prosper. This research was carried out to study the current manufacturing strategies implied by India for its growth in the manufacturing sector.

An analysis was done on the factors which affect the manufacturing sector in different states across the country.

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Good infrastructure, compliance to tax & labor laws, and meeting the desired environmental standards were some of the factors responsible for the better performance of states like Gujarat and Andhra Pradesh.” International Monetary Fund (IMF) raised a concern about the pace of the reforms which are being passed.

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They pointed out that the Indian economy is facing a “decelerating pace of reforms”. Recently the long-awaited GST bill had been passed by the government of India which would enable an easy and cost-cutting flow of goods across different states of the country. It presents a wonderful opportunity for the manufacturing sector to re-establish the logistics sector of the country.

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A strong infrastructure is an essential ingredient for any manufacturing sector to grow. Keeping that in mind the government of India is investing a lot of funds in building a strong network of roads, rails, and transport to foster the growth of the manufacturing sector.

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As many industrial corridors and road networks rapidly are being formed, this paper focuses on how these networks are catering to the growth of this sector. From this research, we found out how new laws especially on land and labor coupled with constant improvement in the infrastructure are aiding India to emerge as the new manufacturing sector hub.


Post-independence, the Indian economy was heavily dependent on agricultural Implements. It contributed to more than 50% of the GDP. Over the years India gradually shifted from an agriculture-based economy to a service-based economy.

sector-wise contribution
Fig 1 Sector-wise contribution to GDP

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Many economists believe that skipping the secondary sector is the main reason why the Indian economy has not developed as fast as other economies of the world.

In recent years the manufacturing sector in India has been the major focus for the government of India.

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Realizing the importance of the manufacturing sector and the amount of employment it can generate, many initiatives are being taken up by the current government to foster the growth of this sector.

Having the benefit of a high amount of educated population & skilled labor, there is enough scope for the manufacturing sector to further develop in the country.

The ‘Make in India’ campaign started by the current government is one of the biggest initiatives taken by any government in order to attract foreign investors to invest and start manufacturing in India. The government is providing adequate infrastructures like electricity and a strong network of roads and railways for easy transportation of goods and services.

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Many laws favoring the laborers and land acquisition are being implemented so that it is easier for foreign investors to start their business in India. Their main motive is to manufacture goods with zero defects so that none of the exported goods are returned back to India.

With ‘Make in India’ campaign, the government doesn’t want to compromise on the environmental standards. They want to follow a sustainable and environmentally sensitive path to prosperity. Some of the major industries which are on a high rise are the automobile industry, electronic & semiconductor industries, Industrial Plants and machinery, Chemical Plants and Machinery, pharmaceutical industries, and aviation industries. Many foreign investors are looking to invest in the defense sector of the country as well.

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Along with foreign investors, domestic companies having good leadership and manufacturing technology are also encouraged to invest, so that they can compete with the global leaders.

State-wise contribution to GDP

Fig.2 shows the increase in % GDP

Fig.2 shows the increase in % GDP of some of the states in India. Apart from Maharashtra, all the above states are expected to have a rise in GDP by the year 2020. If we observe from the graph, the states Bihar, MP, Rajasthan & UP (BIMARU) were not very effective in contributing to the GDP of the country; they lacked way behind in the development of the country.

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Lack of education, lack of planning commission, and political fights were major issues that plagued these states. A high level of corruption was also a major factor that made these states underdeveloped.

Most of the population in these states was dependant on the Agriculture and Farming sector only, and many people remained below the poverty line (BPL).


Shruti Kaur- Entrepreneur While the vision is mine, I cannot make it a reality on my own. I need the understanding, buy-in, and the enthusiasm of my team to work together collectively to take the company forward, and everybody’s favorite word, “scale.”

15 thoughts on “Manufacturing Sectors in India: Remarkable

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