Manufacturing: An Investment Theme For The Next Decade

The manufacturing sector comprising industries that produce goods by processing raw materials or inputs into finished products plays a crucial role in India’s GDP (gross domestic product). It is one of the major contributors to the country’s economic growth and employment generation. In 2013, India’s manufacturing sector accounted for 14 per cent of the GDP. However, even eight years later (FY 2020-21), the manufacturing sector’s share in India’s GDP continued to hover around similar levels at 17.4 per cent. Till recently, most consumption depended on imports from China. Due to the unbeatably low rates of Chinese goods, manufacturing had become a pain point for India.