D&B launches Manufacturing India 2025
Dun & Bradstreet, the worldâ€™s leading provider of global business information, knowledge and insight, today, launched its publication, Manufacturing India 2025.The study provides forecasts of overall economy and manufacturing sector by 2025.
Dr. Arun Singh, Lead Economist, Dun & Bradstreet India said, â€œDun & Bradstreet expects that the future holds much promise for the Indian economy. We believe that this government will continue with the policy of driving reforms in a systematic and time bound manner. Consumption as well as investment demand is thus likely to remain healthy, support overall growth momentum and push Indiaâ€™s nominal GDP to reach US$ 6.4 trillion by FY25 with real Gross Value Added (GVA) expected to grow at an average rate of 7.9% till FY25. The manufacturing sector is expected to be the major driver of growth in the coming decade. Even as the various challenges confronting the manufacturing sector are significant, a great start has been made to grease the wheels of the manufacturing sector. The â€˜Make in Indiaâ€™Â initiative of the Government will be a vital component in Indiaâ€™s quest for establishing itself as a global manufacturing hub. The various measures taken by the government in terms of measures for ease of doing business, creation of conducive environment for the manufacturing activities, focusing on improving industrial policies and FDI enhancement would aid in reviving the manufacturing sector and achieving global competitivenessâ€.
â€œWe expect India to realize the target of 25% share of manufacturing in overall economy at best by 2025. Going forward, changing economics of production and distribution and frequent shifts in consumer demand will require manufacturers to adopt new process and make new products. Indian manufacturing companies will have to adapt and increase their focus on developing advanced manufacturing capabilitiesÂ if they wish to stay competitive at the higher ends of the value chainâ€ he added.
Dun & Bradstreetâ€™s â€œManufacturing India 2025â€ was released by Chief Guest Shri Amitabh Kant, IAS, Chief Executive Officer, NITI Aayog, Government of India; Mr. Kaushal Sampat, President and Managing Director – India, Dun & Bradstreet. Leading names from the corporate sector participated in a panel discussion on â€œJourney towards achieving 25% share in GDP: Accelerating manufacturing by redefining building blocksâ€ that followed thereafter.
- Indiaâ€™s nominal GDP is expected to be approximately US$ 6.4 trillion by FY25.
- Given its strong domestic fundamentals, India is expected to realize its potential and achieve an average growth rate of around 7.9% during the next decade (FY16-FY25).
- The share of services sector in GVA is expected to be 56% by FY25, while the share of the agriculture sector in GVA is expected to decline from 16.3% in FY15 to 9.9% by FY25.
- Growth of the industrial sector is expected to revive in the coming decade. With recovery in the industrial activity, share of industrial sector in overall GVA is expected to increase from 31.2% in FY15 to 34.1% in FY25.
- Indiaâ€™s manufacturing sector is expected to gain momentum in the coming years and is expected to realize the target of 25% share of manufacturing in GVA at best by 2025.
- The share of 6 major industrial sectors in Indiaâ€™s economy i.e. Mining, Metals, Machinery & Equipment, Chemical & Pharma, Textiles & Leather and Food processing sectors are expected to grow from around 17% in FY14 to approximately 23% by FY25.
- In view of various initiatives taken by the government, a significant pick-up in infrastructure investment can be expected in the coming years. According to D&B estimates, physical infrastructure investment is expected to surge to 10.2% of GDP by FY25.
- The goal of raising the share of manufacturing to 25% of GVA would require conducive business environment, efficient business processes, investment to support innovation, capital and labour efficiency, shift from low value added sectors towards high value added sectors, presence of supporting industries along with continued policy thrust amongst other measures.
- Besides improvement in physical infrastructure, strong supply chain and logistics, focus on health and skill development are required which will not only facilitate the growth of the manufacturing sector but will also push India on a high and sustainable growth trajectory in the coming years.
- The â€˜Make in Indiaâ€™ initiative, improvement in business environment, implementation of critical reforms in the areas of land, labour and taxation, focus on skill development and macro-economic stability are expected to be the key factors that would provide fillip to the Indian manufacturing sector.
- Even as some of the main barriers to manufacturing are gradually eliminated in the coming years, there will be yet another force that the manufacturing sector in India will have to reckon withÂ – the evolution of new and disruptive technologies.