The manufacturing sector plays a crucial role in India’s economic development by generating large-scale employment, boosting GDP growth, and driving structural transformation from agriculture to industry. However, its performance has remained below potential, with the sector contributing only about 15–17% of GDP and around 11–12% of total employment. Constraints such as high logistics costs, infrastructure gaps, low R&D spending, skill mismatches, regulatory complexity, and dominance of informal enterprises have slowed progress. Government initiatives including Make in India, Production Linked Incentive schemes, PM Gati Shakti, Atmanirbhar Bharat, and Skill India aim to raise competitiveness, enhance domestic value addition, and integrate India more deeply into global value chains. Overall, manufacturing remains central to India’s growth strategy, but sustained reforms and investment are needed to fully realise its potential.
Click to View MoreIndia's regional industrial growth is influenced by historical legacies, geographical constraints, and policy choices. To promote balanced development, India is focusing on initiatives like 'Make in India' and industrial corridors, addressing infrastructure deficits, promoting skill development, and ensuring effective Centre-state cooperation.
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