INDIAN MANUFACTURING SECTOR
? INTRODUCTION:
Manufacturing sector is the backbone of any economy. It fuels growth, productivity, employment, and strengthens agriculture and service sectors. Astronomical growth in worldwide distribution systems and IT, coupled with opening of trade barriers, has led to stupendous growth of global manufacturing networks, designed to take advantage of low-waged yet efficient work force of India. ' Indian Manufacturing ' sector is broadly divided into - Capital Goods & Engineering, Chemicals, Petroleum, Chemicals & Fertilizers, Packaging, Consumer non-Durables, Electronics, IT Hardware & peripherals, Gems & Jewelry, Leather & Leather Products, Mining, Steel & non-Ferrous Metals, Textiles & Apparels and Water Equipment.
The overall manufacturing growth rate is projected to rise to 9.5% in 2008-09, after declining to 8.8% in the 2007-08 from a high of 12.3% attained in the previous year (2006-07). Over the past year or two there has been mounting confidence about the new found strength of India's manufacturing sector and its long-term potential. The recently approved 11th Five Year Plan expects manufacturing to grow at 10-11 per cent a year during the period 2007-12.
Of the 100 sectors surveyed, as many as 67 sectors are poised to achieve ‘excellent’ to ‘high’ growth rates ranging 10 to 20 per cent or more. While 12 sectors project excellent growth of more then 20 per cent or more, 55 sectors foresee high growth of 10 to 20 per cent, 32 sectors expect moderate growth of up to 10 per cent and 1 sector has projected a negative growth during 2008-09.
? CHALLENGES FOR THE INDIAN MANUFACTURING SECTOR:
The various factors are as follows:
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