Current Scenario of Manufacturing Industries – Its Impact on Gross Domestic Product of India
The Manufacturing can be defined as a conversion of raw materials or chemicals into products with the help of machines, tools and equipments on a large scale. The sector has come out as most powerful sector in India. It plays prominent role in growing and developing India.
As we know, the manufacturing sector is growing with high rates by itself, but the Prime Minister of India has also taken few intellectual steps to boost the sector at its best. In this loom, India’s economy will surely get global acknowledgment. “Make in India” is one of the intellectual steps taken by the government to heighten the sector and to represent India as a manufacturing hub on world map.
In India, there are two types of manufacturing sectors. One is primary sector and other is secondary sector of manufacturing.
- Primary manufacturing industries wrap those industries, which transforms the raw materials into products.
- Secondary manufacturing industries include heavy, light and high-tech industries.
Several other huge sectors that are wrapped under the manufacturing sector are metallurgical industries, engineering industries, chemical industries, textile industries food processing industries and hi-tech industries.
The government of India has set a motivated target of achieving the involvement of manufacturing production by forthcoming financial year to 26 per cent of Gross Domestic Product. At present, the contribution of manufacturing industries to GDP is 15.6 per cent. India’s manufacturing industries have the knack to achieve the set target and hit USD one trillion by 2025. Talking about the job opportunities, it will provide the 90 million domestic jobs by the same year. The purchasing manager index, PMI is 51.1 as reported on February 2016. Manufacturing sector has really expanded in India due to increase in demand of domestic and foreign because of low prices. The manufacturing sector is not a competitor of agricultural sector and service sector; instead it supports and strengthens these sectors.