PM Modi rules out privatisation of Railways; calls it the backbone of Indias development - PM Modi rules out privatisation of Railways; calls it the backbone of Indias development economictimes.indiatimes/industry/transportation/railways/pm-modi-rules-out-privatisation-of-railways-calls-it-the-backbone-of-indias-development/articleshow/45639914.cms Now and the Future of Manufacturing in India: According to Deloitte’s global index for 38 nations (2013), India is the 4 most competitive manufacturing country in the world. A significant CAGR of 7.8% was observed in the period of 2006-2011. Currently, manufacturing sector contributes about 16% to GDP. A study by McKinsey & Co. points out that India’s manufacturing sector can reach to USD 1 Trillion by the year 2025, keeping in mind the continuously growing demand in the country and the inclination of MNCs to establish low-cost plants in India. GDP contribution can go upto 25 - 30%. Also, 90 million jobs can be created in the country. Manufacturing industry is important for India’s economic progress and is an attractive hub for foreign investments. Apart from the domestic market’s lucrativeness, there are companies abroad that are looking to set up their manufacturing facilities in India. Also, the Hi-Tech exports of India reached to USD 20.9 billion in 2011 from USD 8.1 billion in 2007. The pharma and electronic goods are the dominant products for exports. Where to Invest? There are some great investment opportunities in the manufacturing sector in India. Below are some segments that have been very rewarding for the country and has a good growth potential. 1) Pharmaceutical Industry: Indian pharmaceutical industry is one of the most developed industries and ranks 3 largest in the world. It has been valued at approx. USD 12.26 billion with a growth rate of 10-11% p.a. Although total turnover of pharmaceutical industry is estimated at 21.04 billion, about 65% of this revenue is from exports. 2) Metal, Plastic and Rubber industry: The plastics industry in India operates more than 30,000 processing units (85%+ SMEs) and employs about 4 million people. In 2012–13, exports accounted for USD 7.2 billion.India is the worlds largest producer and the third largest consumer of natural rubber. Today Indian Rubber Industry consists of turnover of ₹ 12,000 Crores.Talking about steel alone in the metal industry, India ranked as the 4 largest steel producing country in 2012. The crude steel production was 76.7 million tonnes (MT). 3) Electronics Industry ; Electronics goods production in India is projected to touch US$ 104 billion by 2020. The production grew at a CAGR of 14.4 % during the period 2007–2013. India’s electronics market is expected to grow to USD 400 Billion by 2020. 4) Automobile industry: The country’s automobile sector is one of its most vivacious industries and accounts for 22% of India’s GDP. Currently, it is the seventh-largest in the world with an average annual production of 17.5 million vehicles, of which 2.3 million are exported. Considering the growth rate of these industries and the forecasts for next few years, this seems to be the most appropriate time to invest in manufacturing companies in India Modi government pushing ministries to ensure mechanism for faster clearances - Modi government pushing ministries to ensure mechanism for faster clearances economictimes.indiatimes/news/economy/policy/modi-government-pushing-ministries-to-ensure-mechanism-for-faster-clearances/articleshow/45644439.cms
Posted on: Fri, 26 Dec 2014 01:27:22 +0000
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