The sectors that would matter in India’s race to be a manufacturing powerhouse

India’s manufacturing exports increased 40% year over year in FY22 to a record $418 billion thanks to favourable global attitudes, government initiatives, affordable labour, and a competent labour force. By FY28, economists predict that India’s manufacturing exports would increase to $1 trillion, with a large portion of this growth coming from a small number of industries.

According to a survey by the international consulting company Bain & Company, the chemicals industry’s exports are predicted to increase at a CAGR of 19 percent to 23 percent, or around.

Analysts claim that the Center’s PLI programme, with a $47.8 billion investment anticipated over five years beginning in 2021, has boosted domestic production and supported manufacturing-driven exports. The Comprehensive Partnership Agreement (CEPA) between India and the United Arab Emirates and the Economic Cooperation and Trade Agreement (IndAus ECTA) between India and Australia have also been signed by India, according to Pasricha. These agreements will increase bilateral trade and foster the expansion of exports.

India is speeding up.

Industrial machinery ($70-75 billion), electrical and electronics ($120-145 billion), automotive ($45-55 billion), and textile & clothing ($95-110 billion) are the other industries that will drive this expansion.

However, if the nation is to scale up its exports of manufactured goods, Indian businesses should concentrate on having a clear export strategy, the necessary execution skills, the appropriate partnerships to facilitate exports, and the best capital expenditure efficiency focus to increase manufacturing capacity.

 

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