The Fate of Indian Manufacturing Sector

Indian economy is primarily agrarian. Manufacturingmanufacturing goods. The bottlenecks in this
sector lends another opportunity for the peoplesector affect the economy directly. The overall
involved in agriculture to shift to a comparativelydevelopment of the country is hindered because
higher income zone. This sector acts as aof:a. Improper utilization of technology and
backbone for the agricultural and service sector.resourcesb. Inadequate infrastructurec.
Globally, the manufacturing networks haveBureaucracy and expensive financingd.
considerably improved and the trade barriers haveOverstaffed functioning of the manufacturing
vanished.units
In 1990, after the introduction of liberalization,The manufacturing associations must mend the
privatization and globalization, the manufacturingaberrations to secure its global market again. The
sector has considerably risen in the past decades.focus must be laid on eliminating these unwanted
Globalization has immensely contributed to thefactors by providing quality education, improving
Indian manufacturing sector. As this division isthe standards of vocational studies, increasing the
critical in improving the efficiency of the Indianinvestment quotient in research and development,
workforce, it also serves as a potentialensuring fair competition, improving urban
employment sector.  infrastructure and support of SMEs.
The manufacturing sectors deal in textiles,However, the FICCI (Federation of Indian
chemicals, drugs, machines, electrical products,Chambers of Commerce & Industry) survey
printing and packaging, automotive componentshas predicted the growth of manufacturing sector
and several others. The manufacturing sector ofin the quarter of April to June this year. The
India has been continuously showing a growthdemands of the manufacturing goods have risen
pattern and has extensively contributed in thein the global market. But the survey also states
GDP of India. However, Indian manufacturingthe Chinese manufacturing units like leather, textile
goods are getting stiff competition from theand chemicals are having an edge over the Indian
markets of China, Taiwan and Korea. The goodsgoods. The largest employment generating sector
from these Asian countries are heavily in demandin India has bleak chances of continuing the
globally. The buyers of the low cost export goodsexports and hence, many units are withdrawing
have shifted to Chinese products. Even thethemselves from the export market. Therefore,
domestic markets are also concentrating on theFICCI warns about the inconsistency in the
cheap Chinese goods.growth of manufacturing units and calls for an
India is not at par with the global standards of theimmediate policy action.