Despite enormous potential and capability of growth, manufacturing Sector has not grown to its full potential in India. The best example is the Jute factories in West Bengal. In the 19th century Jute mills were the base of industrialization in West Bengal. Jute Industry was pivotal in the process of industrial activity at that time period. But due to political reasons and other factors (which I would not like to delve in) the industry started declining. Jute factory works lost their jobs and many factories went on a loss and eventually had to close down.
But with time, things have changed and this sector is showing positives sign of growth. Manufacturing sector is slowly emerging as one of the high growth sectors in India. The biggest boost to it is the "make India" program launched by the Modi Government. As per a survey, India's ranking among the world's ten largest manufacturing countries has gone from ninth to sixth in 2015.
Manufacturing sector has a huge potential for growth. An estimated 25 to 30% of our GDP can be accounted to this sector. This sector alone has the potential of creating around ninety million domestic jobs by the year 2025. That is an estimate of around nine million jobs in this sector alone per year for the next ten years.
India is striding toward becoming the hub for hi-tech manufacturing and this is becoming possible as global giants like GE, Siemens, HTC, Toshiba and Boeing have either set up or are in the process of setting manufacturing plants in various parts of India. Cheap labor is not the only reason for this massive change.
Our Prime Minister Mr. Narendra Modi has gone that extra mile to push "Make in India" initiative to a global level and give it the recognition it deserves in the world market. He pitched India as the major manufacturing hub in World International Fair that was held in Germany's Hannover in 2015 where he showcased India as a business friendly destination in order to attract more foreign clients to invest and manufacture in India.
The next major move was the granting of 100 per cent FDI in defence. This opens up new avenues for the manufacturing sector in India and gives it the most needed boost it requires for the potential growth in coming years.
A major boost to the "Make in India" initiatives is the "Skill India" initiative that was parallel started by the central government. Through this initiative the main focus is on enhancing different skills and training people at various levels to enhance their individual skills to start an SME. With the growth of SMEs, the chances of employment also increases at various levels as the need for skilled employees also increases with the growth of these companies.
Potential for jobs in this sector is huge and the coming years will see a lot of openings in this sector.
Guest Author
Chandrashekhar is a avid reader and an enthusiastic writer and blogger who loves to write about various topics which have a bearing on the lives of the people. He has a master's degree in computer science and is working as a manager in an IT firm in Chennai.
