India remains a bright spot on the global manufacturing map despite persistent geopolitical tensions, aggressive industrial and trade policies, supply chain disruptions and global trade slowdown, and fostering R&D investments, and innovations enhancing the growth and formalisation of smaller manufacturers will further drive growth across various sectors, the Economic Survey 2024-25 said on Friday.
The global manufacturing landscape has undergone significant shifts over the past decade and India has been one of the dynamic economies that gained a greater presence in the space gradually vacated by developed countries.
With 2.8 per cent of the global share in manufacturing, compared to China's 28.8 per cent, India has a large opportunity to climb up the ladder. The country also has a substantial scope to improve the contribution of the industrial sector in GDP in relation to its comparator countries.
"It is more so in the light of the IMF's observation that manufacturing production is increasingly shifting towards emerging market economies, particularly China and India. India stands a good chance of benefiting from the trends in global industrial diversification," according to the Survey.
Industrial growth in FY25 is expected to be higher than the average of the previous five years. In FY25, the industrial sector grew by 6.2 per cent with robust growth in electricity and construction.
As the Survey shows, stabilising growth in the steel, cement, chemicals, and petrochemicals sectors have been key contributors to industrial growth, while automobile, electronics, and pharmaceutical sectors have been the growth drivers for the country.
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