A report released on Tuesday indicated that India’s industrial sector is anticipated to surpass agriculture in GDP share (30-32 percent) by 2035, creating a $3 trillion opportunity largely propelled by manufacturing. By 2035, manufacturing is anticipated to become the growth leader, capturing two-thirds of the industrial sector and over 20 percent of GDP.
The report from Omniscience Capital anticipates that this growth will be fueled by greater domestic consumption linked to rising per capita income and the goal of reaching $1 trillion in merchandise exports. India's economic growth hinges on the manufacturing sector, which plays a major role in the country's GDP. At present, it is one of the main sectors driving growth in India, serving both domestic and international markets.
This growth is being driven by government efforts like the "Make in India" campaign, the Production-Linked Incentive (PLI) plan, the liberalized Foreign Direct Investment (FDI) policy, the public-private partnership (PPP) models for various public projects, and these policy framework will boost infrastructure development. According to the analysis, product exports must rise from the current $450 billion to $1 trillion, necessitating an annual growth rate of 12%, in order for India to meet its ambitious $1 trillion merchandise export objective by 2030.
India's proportion of the world's merchandise exports has doubled, rising from 0.9% in 2005 to 1.8% in 2023. From FY21 to FY24, India's merchandise exports grew at a 3-year compound annual growth rate (CAGR) of 18.8%, and from FY19 to FY24, they grew at a 5-year CAGR of 9.4%.
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