Manufacturing Industry refers to any business that transforms raw materials into finished or semi-finished goods using machines, tools and labor. Manufacturing Sectors include production of food, chemicals, textiles, machines and equipment.
India’s Manufacturing Sector is vital for its economic progress. The Government has taken a number of steps to further enhance the industry. Today, the country’s attractiveness as a manufacturing centre for foreign companies is clear. Hi-tech exports are expected to boost the country’s manufacturing industry. The electronic goods and pharmaceuticals sectors dominate exports of high-tech products, with the share of electronics almost doubling during the 2007–2011 period, according to an industry study.
The country's Gross Domestic Product (GDP) for the fourth quarter of the financial year 2013-2014 grew at 4.6%, and the manufacturing sector grew at 1.4% versus -1.9% QoQ (Quarter-over-Quarter).
Currently, manufacturing in India provides only 12% of jobs, and this share is significantly less than that of other countries.
India’s Manufacturing Industry could touch US$ 1 trillion by 2025. This is according to a study by global management consulting firm McKinsey and Company.
Up to 90 million domestic jobs could be generated by that time, with the sector producing about 25–30 per cent of India’s gross domestic product (GDP).