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 MoreThe proposed Jan Vishwas Siddhant seeks to replace Licence Raj with a trust-based regulatory model. Building on the Jan Vishwas Act, 2023, it promotes self-registration, risk-based inspections, decriminalisation of minor offences and a single digital legal portal. The reform aims to cut compliance burdens, boost ease of doing business, spur innovation and support faster economic growth toward a Viksit Bharat.
Click to View MoreIndia's economic growth is currently driven by strong public investment, while private domestic investment remains weak despite high corporate profits. Indian firms are increasingly investing abroad, but global uncertainties highlight the need to refocus capital within the country.
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