Dun & Bradstreet, provider of global business information, knowledge and insight, launched its publication, Manufacturing India 2025. The study provides forecasts of overall economy and manufacturing sector by 2025.
Dr. Arun Singh, Senior Economist, Dun & Bradstreet India said, “Dun &Bradstreet expects that the future holds much more promise for the Indian economy in the next decade. We believe the on-going reform efforts by the Government needs to be supplemented with appropriate implementations along with overhauling some of the fundamental factors such as labour laws, poor infrastructure along with tax policies that have held back India’s growth potential. This would provide the much awaited “big push” to the Indian economy during the next decade. The Indian economy is expected to reach close to US$ 7 trillion by 2025. The strong accent on infrastructure and institutional capacity creation by the current government is expected to be the major growth driver for the Indian economy in the next decade. The Government’s strong intent to revive India’s manufacturing sector should be able to crowd-in private investment in the coming years. While services sector will continue to drive India’s growth momentum, the industrial sector is expected to witness double-digit growth and its share estimated to increase from 31.4% in FY15 to 37.6% in FY25. The ‘Make in India’ initiative of the Government is expected to be a vital component in India’s quest for establishing itself as a global manufacturing hub. Dun &Bradstreet expects India to realize the target of 25% share of manufacturing in overall economy at best by 2025.”
“Enhancing the share of manufacturing to 25% of overall economy would, however, require conducive business environment, investment to support innovation, capital and labour efficiency, shift from low value added sectors towards high value added sectors, efficient business processes, presence of supporting industries along with continued policy thrust amongst other measures” he added.
Dun & Bradstreet’s “Manufacturing India 2025” was released by Chief Guest, DrBibekDebroy, Member, NITI Aayog; Shri Shaktikanta Das, IAS, Secretary, Department of Economic Affairs, Ministry of Finance – Government of India; Dr. Rajat Kathuria, Director & Chief Executive, Indian Council for Research on International Economic Relations (ICRIER); Mr. Arun Khanna, President, Dun & Bradstreet – Asia, Mr Rajiv Srivastava, Managing Director, HP Inc India. Leading names from the ministry and corporate sector participated in a panel discussion on “India, a Global Manufacturing Hub by 2025? – Pathways to unlock the potential” that followed thereafter.
About D&B’s Manufacturing India 2025
In the publication “Manufacturing India 2025″, Dun &Bradstreet attempts to evaluate and analyse the prospects of the Indian economy and Manufacturing sector over the next decade. The report outlines the current investment scenario, provides growth estimates of leading six industrial sectors, compares the enablers of Indian manufacturing with its global counterparts and lists down key constraints that could pose downside risks to India’ s growth prospects. The forecasts made in the publication can help us to prepare for future challenges and seize opportunities that lie ahead.
- India’s nominal GDP is expected to be approximately US$ 7.0 Trillion by FY25.
- Services sector will continue to drive India’s growth momentum; the sector is expected to grow at an average of around 9.0% during FY16 – FY25.
- Industry is expected to surpass service sector growth; the sector is likely to grow at an annual average growth rate of around 11.0% during FY16-FY25. The share of the industrial sector is estimated to increase from 31.4% in FY15 to 37.6% in FY25.
- The share of the agriculture sector in Gross Value Added is expected to decline from 16.1% in FY15 to 9.4% by FY25.
- The implementation of the “Make in India” agenda could see our economy shift to the next gear of competitiveness during the next decade.
- India is expected to realize the target of 25% share of manufacturing in GDP at best by 2025.
- The share of 6 major industrial sectors in India’s economy i.e. Mining, Metals, Machinery & Equipment, Chemical &Pharma, Textile, Garments & Leather and Food processing sector is expected to grow from around 17% in FY14 to approximately 23% by FY25.
- Given the renewed emphasis on infrastructure sector by the government, physical infrastructure investment is projected to surge to 10.4% of GDP by FY25 from around 7.5% (E) of GDP in FY15.
- Improvement in social infrastructure will help the country to move towards inclusive growth.
- Total government investment on healthcare is expected to rise to 2.5% of GDP in FY25, as against 1.2% (BE) of GDP in FY15.
- Public expenditure in education to increase to 4% of GDP by FY25, compared with 3.2% (BE) of GDP in FY15.