Content area
Full Text
The Indian economy showed resilient behaviour during recent global recessionary conditions and has emerged as one of the fastest growing economies in the world. The salient feature of India's recent growth has been the dynamism of the service sector, while the manufacturing sector has been comparatively less robust. The manufacturing sector of Indian economy still lags behind in comparison to some developed and developing nations. There are certain bottlenecks in the Indian economy which the Government needs to address towards making India a global manufacturing hub. Government of India takes valuable initiatives to tackle these bottlenecks like 'Make in India. The present research paper aims to study the status of manufacturing sector in Indian economy, recognize the key challenges faced by manufacturing sector of India in the course of development process. The paper also throws light on the 'Make in India' initiative of Government of India which is launched to promote the development and competitiveness of the Indian manufacturing sector.
Keywords: manufacturing sector, Make in India, gross domestic product, challenges, ease of doing business
India has emerged as one of the fastest growing economies in the world over the last two decades. The salient feature of India's recent growth has been the dynamism of the service sector, while the manufacturing sector's contribution to GDP is comparatively low. The contribution of India's manufacturing sector to the GDP has been stagnated around 16%, raising questions about India's development model, including its sustain ability, especially for generating adequate employment. Currently, India's manufacturing sector contributes about 17% to the GDP, and India's share in world manufacturing is around 2%. This is in stark contrast to China; where manufacturing contributes 36% to the GDP and is around 14% of world manufacturing up from 2.9% in 1991. India's growthhas been on the back of a booming services sector. The services sector contributed 66.1 per cent oflndia's GVA growth in 2015-16. These statistics clearly shows that though manufacturing has not been the engine of growth for the Indian economy, it now needs to grow at a much faster rate. In future, the manufacturing sector should provide ample employment opportunities, in contrast to current employment of around 12% of India's working population in manufacturing sector.
The above table shows the annual...