Manufacturing Sector in India
Manufacturing refers to the process of manufacturing industrial goods in a factory, MSME, home factory etc.
The Manufacturing sector of India has gone through several phases of development since independence in 1947 till date. It expanded from the domestic manufacturing sector from building the industrial foundation in India in the 1950s and early 1960s to the license permit Raj between 1965 to 1980. Following this, it underwent a major phase of liberalization of the 1990s and now in the present phase of global competitiveness.
Why Indian Manufacturing matters?
- The Manufacturing sector currently accounts for 16-17% to Indian GDP and generates employment to around 12-15% of the country s workforce.
- Various studies about Indian Manufacturing have estimated that for every job created in the manufacturing sector, it creates 2 3 jobs in the services sector.
- This holds tremendous significance as India needs to generate more jobs for its bulging population.
Why is this in News?
As per the latest estimates of Gross Domestic Product (GDP) made available by the National Statistical Office, the Gross Value Added (GVA), at constant prices (2011-12), for the manufacturing sector registered a growth of 6.9% in the year 2018-19. This is a minor increment when compared to a growth of 5.9% recorded in the year 2017-18.
Steps India is taking to boost its manufacturing sector?
To provide a flip to its manufacturing sector, The Indian Government has taken several steps like Make in India, the establishment of defense manufacturing corridors, etc.
For the MSMEs, the Central Government has two schemes: the “MSME SAMBANDH” portal to monitor the implementation of a public procurement policy for the MSEs and the “MSME SAMADHAN” portal to enable MSMEs to directly register cases if payments are delayed.