Manufacturing sector in India has the
potential to elevate much of the Indian population above poverty by shifting
majority of the workforce out of low-wage agriculture. In any country, manufacturing
sector is the backbone of any economy as it enhances growth, productivity,
employment and strengthens agriculture and service sectors. Astrological growth
in worldwide distribution systems and IT, coupled with opening of trade
barriers, has led to increase growth of global manufacturing network. This has
been designed to take advantage of low-waged with efficient work force of
India.
In India, manufacturing has emerged
as one of the high growth sectors in India. India is now emerged as a manufacturing
hub and has given a global recognition to the Indian economy. By the end of
year 2020 India is expected to become the fifth largest manufacturing country
in the world. In both advanced and developing economies manufacturing remains
as a critical force. New opportunities and challenges to business leaders and
policy makers have changed the business sector.
The manufacturing sector remains
critically important to both the developing and the advanced world. The
developing countries provide a pathway from subsistence agriculture to rising
incomes and living standards. It provides a vital source of innovation and
competitiveness, making outsized contributions to research and development,
exports and productivity growth. The manufacturing sector has changed by
bringing both opportunities and challenges. The business owners and policy
makers cannot rely on old responses in the new manufacturing environment.
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| source: thehindhuonline.com |
By 2025, it is expected that India’s
manufacturing sector will touch US$ 1 trillion. The manufacturing sector also
has a potential to account for 25-30 per cent of the country’s GDP and create
up to 90 million domestic jobs by2025. In the Indian manufacturing sector the
business conditions will continue to remain positive. As wages rises, consumers
had more money to spend on services and manufacturing growth accelerates. This
makes it more important than manufacturing as a source of growth and
employment.
After recovering from the great
recession the advanced economies hiring in manufacturing ay accelerate and some
nations may even raise net exports. Manufacturers will continue to hire workers
both in production and nonproduction roles.
It is expected that by 2025, in
developing countries new global consuming class will have emerged and the
majority of consumption will take place which will create rich new market
opportunities. In established markets, demand is fragmenting as customers ask
for greater variation and more types of after-sales service.
Companies should understand the needs
of emerging markets and also the need of the existing customers. They will also
need agile approaches to the development of strategy by making use of scenario
planning rather than point forecasts. They will also have to make big bets on
long-range opportunities like tapping new markets in developing economies or
switching to new materials with minimum risks.
For policy makers, to support
manufacturing industries and competing globally means that policy must be
grounded in a comprehensive understanding of the diverse industry segments in a
national or regional economy. They should also recognize that the long-term
goals for growth, innovation and exports are best served by supporting critical
enablers for manufacturers. This will help them forge the connections needed to
access the rapidly growing emerging markets.
Manufacturing industry in India is
competing in the global marketplace and registering high growth over year to
year basis but large sections of Indian manufacturing sector still suffers from
use of primitive technology, poor infrastructure, expensive financing and
bureaucracy.
When a business invests in a foreign country
then there is a foreign direct investment. This is either by acquiring a
foreign business that controls of starts a business in the foreign country.
Though global economies are suffering with financial crisis and financial
hurdles, India is still a global investment destination. From time to time
Indian government is framing new policies to meet the current requirements and
benefits of the nation. Foreign direct investment plays an important role in
enhancing the level of economic growth and development by enhancing the
financial position of the country.
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