Indian Manufacturing Sector: Does it have the Potential of
Becoming the World's Manufacturing Hub?

- by Varun Gupta *

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Three years ago, China’s total capital spending on electricity, construction, transportation, telecommunications and real estate was 20 percent of its GDP as compared to US $31 billion or 8 percent of India’s GDP. Just as China is learning from India to improve its performance in the IT sector, so India must emulate China’s success in attracting Foreign Direct Investment in manufacturing. It can do this by building infrastructure and educating and raising the skill levels of its workers. According to Dr. Manmohan Singh, manufacturing's contribution to gross domestic product must surge to 25-35 per cent, as compared with China's 40 per cent, which would need growth in the sector to jump to 12-14 per cent.

INDIAN ECONOMY IN RELATION TO MANUFACTURING INDUSTRY

Growth in manufacturing industry is linked to the economic activity in any country.

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* Contributed by -
Varun Gupta,
B.E. (Electronics), Mumbai University,
MBA, ICFAI University, Hyderabad,
Currently working as Business Analyst with NSE.IT Ltd., Mumbai.

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