(MENAFN- KNN India)
New Delhi, Dec 31 (KNN) India's manufacturing sector is expected to significantly expand its contribution to the country's Gross Value Added (GVA) from the current 14 percent (USD 459 billion) to 21 percent (USD 1,557 billion) by 2032, according to a recent report by Sharekhan.
This growth trajectory positions manufacturing to contribute over 32 percent of the incremental economic value, playing a crucial role in India's aspirations to become a USD 10 trillion Economy by 2034.
The expansion is underpinned by substantial capital expenditure from both government and corporate sectors, particularly in infrastructure development across ports, railways, highways, and power sectors.
India's large domestic market and strategic position in global supply chain diversification further strengthen its manufacturing prospects.
The Production-Linked Incentive (PLI) scheme, launched in 2020 with an outlay of Rs 1.97 lakh crore (over USD 24 billion), has emerged as a key driver of this transformation.
Covering 14 critical sectors including electronics, textiles, pharmaceuticals, automobiles, telecom, and renewable energy, the scheme has already demonstrated significant success.
Government data reveals that as of August 2024, the initiative has attracted Rs 1.46 lakh crore in actual investments, generating production and sales worth Rs 12.50 lakh crore and creating approximately 9.5 lakh jobs both directly and indirectly.
The performance-based incentive structure of the PLI scheme has been particularly effective in attracting investments from domestic and international manufacturers, promoting the adoption of advanced technologies and economies of scale.
This approach aligns with the broader vision of Atmanirbhar Bharat (self-reliant India) and has strengthened India's position as an emerging global manufacturing hub.
The transformation of India's manufacturing sector is further supported by the country's strong workforce and ongoing infrastructure development initiatives.
With continued policy support and strategic investments, the sector is positioned to reshape India's economic landscape, contributing significantly to its overall growth trajectory in the coming decades.
(KNN Bureau)
MENAFN31122024000155011030ID1109045265
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.