In the journey towards achieving sustainable high growth trajectory and inclusive development, India needs to reinvigorate its manufacturing sector. “Since the industrial revolution, no country has become a major economy without becoming an industrial power.” A revival in the manufacturing sector is thus imperative for India to achieve an inclusive and sustainable growth.
As a country with a population projected to increase to more than 1.3 bn by 2021, India has tremendous human potential. The demographic dividend which will present India with a large pool of young and working age population has to be harnessed well and productive employment must be generated. The 183 million additional income seekers (according to the Planning Commission/Niti Aayog) that are expected to join the workforce in the next 14 years cannot be absorbed by the services sector alone. To take full advantage of its demographic dividend and to unlock the human potential of its entire people, India needs to strengthen its manufacturing sector.
To achieve a manufacturing-led transformation, my Government has launched the ‘Make in India’ programme to promote the manufacturing sector of India and make India a global manufacturing hub. The initiative seeks to raise the share of manufacturing to 25% of GDP and create 100 million manufacturing jobs by 2022.
In order to bring about the structural change in the economy, India will also have to move from low value-added to high value added and from low productivity to high productivity sectors or activities.
India has ranked number 1 in Asia on seven out of 10 indicators – political stability, currency stability, high-quality products, anti-corruption, low cost of production, strategic location and respect for IPR. These positive signs for manufacturing sector. The desires of industries and vision of our government match perfectly; our technology and talent can change the world; our scale and skills can speed up global economic growth.
These are all positive signals and we shall take up the agenda of ‘Manufacturing India’ as a collective responsibility.
Keshav C Das