“ India needs to continue to implement critical reforms in key areas such as health , labour , land , skills and finance to emerge stronger from the COVID-19 pandemic .”
Manufacturing has emerged as one of the high-growth sectors in India . Prime Minister Narendra Modi launched the ‘ Make in India ’ programme to place India on the map as a manufacturing hub and give global recognition to the Indian economy . The Government of India aims to create 100 million new jobs in the sector by 2022 .
India is also an attractive hub for foreign investments in the manufacturing sector - the manufacturing sector itself has the potential to reach US $ one trillion by 2025 . Several mobile phone , luxury and automobile brands , among others , have set up or are looking to establish their manufacturing bases in the country .
India ’ s engineering sector has witnessed remarkable growth over the last few years , driven by increased investment in infrastructure and industrial production . The country exports transport equipment , capital goods , other machinery / equipment and light engineering products ( such as fasteners ) to various countries . The country ’ s impetus on developing industrial corridors and smart cities will further assist in integrating , monitoring and developing a conducive environment for industrial development .
Prime Minister Narendra Modi launched the ‘ Make in India ’ programme to place India on the map as a manufacturing hub
The Indian economy
AN EYE ON INDIA
We document key trends , forecasts and COVID-19 impacts in India for sheet metal manufacturers .
“ In India , the COVID-19 pandemic hit the economy at a time when growth was already decelerating . Output is estimated to contract by 9.6 % in Fiscal Year 2020 / 21 , reflecting a sharp drop in household spending and private investment . The informal sector , which accounts for four-fifths of employment , has also been subject to severe income losses during the pandemic . Recent high-frequency data indicate that the services and manufacturing recovery is gaining momentum . In the rest of the region , the economic impact of COVID-19 has been somewhat less severe but still significant . Economies that depend heavily on tourism and travel have been especially hard hit ( Maldives , Nepal , Sri Lanka ),” commented the World Bank in January this year .
“ Growth is expected to recover to 5.4 % in 2021 , as the rebound from a low base is offset by muted private investment growth given financial sector weaknesses . In the financial sector , non-performing loans were already high before the pandemic ,” it added .
India needs to continue to implement critical reforms in key areas such as health , labour , land , skills and finance to emerge stronger from the impact of the COVID-19 pandemic . These reforms should aim at enhancing productivity of the Indian economy and spur private investments and exports , said a World Bank report in August 2020 .
COVID-19 has come at a time when the Indian economy had already been decelerating for nearly two years . The pandemic has exacerbated some of those challenges . Besides the immediate relief and recovery measures , the government has announced significant reform measures for agriculture , education , public sector , and micro , small and medium enterprises . The report said that furthering such reforms will help put the economy back on a growth path .
The COVID-19 crisis , added the report , has also brought to the forefront new economic opportunities in digital technology , retail , health-technology and education-technology services ; and global demand in areas such as pharmaceuticals , medical equipment and protective gear . These opportunities could , it said , provide new growth levers for India .