With industrial revolution and urbanisation moving at a fast pace, the manufacturing sector of the country is experiencing massive growth. Activities in this sector have increased multi-fold and as it stands, it has reached the highest in the last eight years. The growth has been driven by a significant rise in the number of businesses. Because of the growing requirements in the business ecosystem, the rise in production and hiring rate has been a subject to increment. The growth has further been accelerated owing to the creation of several niche sectors which have specific product requirements.
According to the Prinicipal Economist at IHS Markit, Pollyanna de Lima, the strengthening of
the Indian manufacturing sector that was observed in January is improving at a rate that wasn’t seen in the last eight years. The manufacturing Purchasing Manager Index (PMI) has retained a pointer mark that is over 50 for 30 consecutive months. A phenomenon like this has never been observed before. As far as PMI is considered, a score over 50 always means the growth and expansion of the sector while below it denotes deterioration.
The increased volume of client requirements is also giving rise to the demand of manufactured goods in the market. The export segment of the manufacturing sector of the country has also experienced significant growth since 2018 and is still growing at a very fast pace. India being one of the developing countries has a comparatively low manufacturing and labour cost
and at the same time, raw material is also cheaper compared to other countries. This is a major factor driving the growth of the manufacturing sector in India.
Now if the subject of income generation is taken under consideration, it has gone hand in hand with the growth in manufacturing activities. With more requirements arises more manufacturing and the more manpower being involved. Job growth has also been consistent and is at a very good stage where government has come forward with a Budget
that spends 103 lakh crore on infrastructure over the next few years. This will bring about further growth in the manufacturing sector and improve income generation as well.