All of us know, the Indian economy broadly consists of three sectors, i.e.: service sector, agricultural sector and the manufacturing sector. But, why not have a look at the core of this sector. Manufacturing sector, is very diverse in nature. It makes machines for automobiles, electronics, construction & mining equipments, agricultural equipments, processing plant equipments, pharmaceutical and medicine related equipments, defense equipments and the list continues. This sector is of strategic importance to the nation's economy as well as security.
Manufacturing sector of India accounts to around 15 percent of Indian GDP. In terms of employment, approx 6 million are employed under organized manufacturing sector and approx 5 millions are employed under private manufacturing sector (Source: Manufacturing Status & Trends, CII). The Manufacturing sector in India has been undergoing significant transformation over the last decade and a half. From being a sector deploying suboptimal technology and servicing an import substitution market, the sector has come a long way.
Manufacturing sector consists of many sub sectors like Food & Beverage, Textiles, Chemicals, Non-Metallic Mineral Products, Metals & Metal Products, Machinery Transport Equipments, etc. Capital Goods refer to products that are used in the production of other products but are not incorporated into the new product. These include industrial machinery, process plant equipment, construction & mining equipment, electrical equipment, textile machinery, printing & packaging machinery, and most important the machine tools industry.
The Capital Goods industry is the “mother” of all manufacturing industry and is of strategic importance to the national security and economic independence. Capital goods sector alone contributes to around 7 % to our national GDP and the machine tools sector forms one of the major drivers of capital goods sector. Machine tools industry is a vital component of industrialization transformation and industrialization thrust in India.
Some reasons for the growth of manufacturing sector:
(i)Growth of key end users of products from the sector.
(ii)Emphasis laid by the government on key infrastructure sectors such as power oil & gas and civil construction.
(iii)India being preferred as a global manufacturing destination due to availability of factor conditions at favorable terms compared to other developing nations.
(iv)India also emerging as a market that can export sophisticated/high technology goods to developed countries rather than only exporting low value goods to developing countries. Large number of SMEs who can support and supplement the capacities of large players.
(Source: Status Paper for Parliamentary Committee, CII)
Manufacturing sector of India accounts to around 15 percent of Indian GDP. In terms of employment, approx 6 million are employed under organized manufacturing sector and approx 5 millions are employed under private manufacturing sector (Source: Manufacturing Status & Trends, CII). The Manufacturing sector in India has been undergoing significant transformation over the last decade and a half. From being a sector deploying suboptimal technology and servicing an import substitution market, the sector has come a long way.
Manufacturing sector consists of many sub sectors like Food & Beverage, Textiles, Chemicals, Non-Metallic Mineral Products, Metals & Metal Products, Machinery Transport Equipments, etc. Capital Goods refer to products that are used in the production of other products but are not incorporated into the new product. These include industrial machinery, process plant equipment, construction & mining equipment, electrical equipment, textile machinery, printing & packaging machinery, and most important the machine tools industry.
The Capital Goods industry is the “mother” of all manufacturing industry and is of strategic importance to the national security and economic independence. Capital goods sector alone contributes to around 7 % to our national GDP and the machine tools sector forms one of the major drivers of capital goods sector. Machine tools industry is a vital component of industrialization transformation and industrialization thrust in India.
Some reasons for the growth of manufacturing sector:
(i)Growth of key end users of products from the sector.
(ii)Emphasis laid by the government on key infrastructure sectors such as power oil & gas and civil construction.
(iii)India being preferred as a global manufacturing destination due to availability of factor conditions at favorable terms compared to other developing nations.
(iv)India also emerging as a market that can export sophisticated/high technology goods to developed countries rather than only exporting low value goods to developing countries. Large number of SMEs who can support and supplement the capacities of large players.
(Source: Status Paper for Parliamentary Committee, CII)
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