Subrata Majumder
Manufacturing in India, which slipped to negative growth during the COVID 19 period, made a sparkling growth in the post COVID 19 period. It boomed to 9.9 percent growth in 2023-24, against a fall by 2.3 percent in the previous year in the GDP growth trajectory.
Nevertheless, the irony is notwithstanding India pitches one of the fastest growth in the economy in the world, manufacturing was trailing behind. This raised a grave concern for the policy makers as manufacturing is the key driver to increase employment and decimate bulging unemployment , the crucial issue for an healthy economy.
Lackluster growth in manufacturing warranted a change in the policy perspectives to reshape the manufacturing landscape in the country. Initially, focus on manufacturing under “Make in India“ was making goods from beginning to finished products domestically. The concept failed to achieve the target of 22 percent of GDP in 2022.
Meantime, with the onset of COVID, a dramatic change was evoked in the world manufacturing landscape for supply chain. China, which topped in manufacturing, receded in its hegemony. Foreign investors were flying out of China and shifted to other South East countries and India. Vietnam emerged as a substitution for China. But, soon it faded its potential since it depends upon China substantially for raw materials and intermediates.
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