Stagnant Manufacturing Share In GDP Points To Its Untapped Potential In Economy: Minister Goyal
Date
8/31/2024 2:24:53 PM
(MENAFN- KNN India)
New Delhi, Aug 31 (KNN) In a statement made on Friday, Commerce and industry Minister Piyush Goyal emphasised the critical role of manufacturing in shaping India's economic future.
Speaking at the Ficci CEO Roundtable Viksit Bharat - India Manufacturing Leaders' Forum, Goyal highlighted the sector's potential to significantly enhance the nation's growth trajectory.
Minister Goyal noted that while manufacturing has been growing at a rate comparable to India's overall GDP - approximately 7-8 percent - its share of the GDP has remained static at 15-16 percent for the past two decades.
This stagnation, despite accelerating overall economic growth, indicates untapped potential within the sector.
"India can do much more," Goyal asserted, pointing to the country's population of 1.4 billion and its increasing pool of skilled graduates.
He urged domestic companies to prioritise purchasing Indian-made products, arguing that such practices would fortify the sector and enhance resilience against global disruptions.
Goyal's comments come in the wake of a significant government initiative announced on Wednesday.
The Union Cabinet approved the establishment of 12 industrial smart cities across 10 states, along with six major industrial corridors.
This project, with a total investment of Rs 28,602 crore, aims to address infrastructure deficiencies around industrial units and bolster India's manufacturing capabilities.
The Minister underscored the importance of manufacturing in realising the vision of a "Viksit Bharat" (Developed India) by 2047.
He emphasised that creating a robust ecosystem of inter-dependent Indian companies could help insulate businesses from global uncertainties, citing recent challenges such as geopolitical conflicts, supply chain disruptions, and health crises.
(KNN Bureau)
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