The Indian Manufacturing Landscape
Modi Government in recent years has taken lot of initiatives to boost the manufacturing sector in India.
Make in India initiative as well as PLI scheme have really attracted foreign as well as Indian companies to make investment in the manufacturing sector. The endeavor is to make the country the global manufacturing hub and design in the near future.
Over the years, service sector and tertiary sector in India was on the priority list and manufacturing sector has been neglected. However, now the manufacturing sector is in the priority list of the government of India.
Further, significant tax and legal reforms has been taken by the government for ease of doing business in India and encouraging foreign company registration in India.
The government’s initiative has resulted in increased FDI in this sector and more and more foreign companies are setting up business in India either in the form of wholly owned subsidiary or branch or some other forms.
Some Facts relating to the Indian Manufacturing Sector:
Here are the facts related to the manufacturing sector in India:
- The manufacturing sector is one of the 12 sectors in the priority list of sectors of the Government, where it is making significant investments as well as major reforms for future growth.
- For the first quarter of Financial Year 2022, the Gross Value Added (GVA) from this sector has been estimated at the current price at 97.14 Billion USD.
- For the second quarter of Fiscal Year 2022, the manufacturing sector’s capacity utilization stands at 72%.
- By the year 2022, the Government of India aims at creating about 100 million jobs in this sector.
- It is estimated that by the year 2025, the Indian manufacturing sector will reach a whopping 1Trillion USD.
Major Manufacturing landscapes in India:
India already has its share of hubs across the country that serves as the major contributors in the manufacturing aspect of the economy. It is to be noted that to increase the capacity and power of these landscapes many significant measures and improvements in the infrastructural area such as power, water lines, railways, roads, airports etc. are required.
Despite this, it is still attracting loads of foreign investments and will continue to do so in the future as well. Here is a brief description of all the important manufacturing landscapes in India where foreign companies can set up manufacturing plants or factories.
- Aurangabad, Maharashtra: This is located to the east of Mumbai, merely a six hours drive from there. It is considered the major healthcare manufacturing hub. It is home to many brewing and pharmaceutical companies set up in India.
- Greater Noida, Uttar Pradesh: It is known best for being the automobile manufacturing hub. It is an ideal location for putting up factory or manufacturing unit, due to its location on the outskirts of the National Capital Territory (NCT) of Delhi and connectivity to major cities. It has a consistent resources supply making it a major attraction for global companies such as Samsung, LG, Honda Siel, Yamaha etc.
- Hosapete, Bangalore, Karnataka: Only five hours drive away from Bangalore in the North direction, this is located in the central area of South India. It is considered as a major manufacturing hub for iron and steel. In the recent years, this place has attracted vast investments and will continue to develop the power and capacity of the manufacturing sector in coming future.
- Manesar, Haryana: It is located to the southwest of Delhi, an hour drive away. It is proper railways and roads connectivity make it most favorable automobile manufacturing hub. Also, many infrastructural reforms have been initiated by the Government to increase the power and capacity of this manufacturing region.
- Nasik, Mumbai, Maharashtra: It is located in the northeast direction of Mumbai, a three hour drive approximately. It is majorly known for its auto component and electrical engineering industries. It is an ideal location for foreign company registration in India as it is connected with two well-developed roads and airstrips. The only drawback is that it does not have an airport.