SM management services provide an industry-wise analysis of the Indian manufacturing sector. We are the Advisors & Consultants for the Indian Manufacturing Sector. The biggest industries are automotive, Pharmaceuticals and medical devices, chemical, defence, electronic goods and equipment, and textile. These are considered the backbone of the manufacturing sector.
Here is an overview of major industries that contribute to one of the largest economies in the world.
1. Automotive Manufacturing
The automotive industry is approximately half of the manufacturing GDP in the country. The industry has slowed down a bit due to COVID-19. Sales of vehicles have dipped approximately 15% in the FY 2019-2020. Most Indian and foreign brands have their R&D centres in India. Raising environmental concerns have pushed the need for electric vehicles. It driven the trend of electronic vehicle ecosystem in which several foreign corporations are already active. The government is also thinking of reducing GST in auto sector to boost this sector.
2. Pharmaceuticals and Medical Devices Manufacturing
The healthcare industry in India was the 4th largest employer in India in 2017. This sector is one of the growth drivers. Supported by rapidly growing manufacturing of medical devices. In this sector, Internet of Medical Things (IOMT), IT & robotic processes are driving factors in India. Similarly, the medical tourism industry in India is also thriving. CAGR of the medical tourism industry has not dropped and steady at 18% with market value is estimated at US $9 billion.
3. Chemical Manufacturing
Indian chemical industry is quite diversified. More than 80,000 commercial products such as bulk chemicals, agrochemicals, petrochemicals, speciality chemicals, polymers, and fertilizers. India has evolved as an innovative industry that works according to global standards with huge investments in R&D from a generic manufacturer.
4. Electronic Goods and Equipment Manufacturing
Largest consumer electronics markets in the Asia Pacific. India is an early adopter in technologies which makes it a high-growth segment. The industry is also placing its chips on AI and IOT driven R&D in manufacturing.
5. Defence Manufacturing
India has 2nd largest armed force in the world. India has 5th largest defence budget. This sector is all set to spend US $130 billion on military modernization by 2025. In recent years, the government has opened the defence sector for PPP for increased participation. However, foreign companies are yet to enter partnerships with Indian companies.
The entry of private companies and PPPs are also encouraged by the government. This will release some pressure on the government-backed manufacturers and reduce imports.
6. Textile Manufacturing
India has been leading in the textile sector in the APAC region. High-quality garment, apparel manufacturing, traditional handloom, cottage industry and export-quality leather goods.
Conclusion by Advisors For Indian Manufacturing Sector
India is quickly becoming a global manufacturing hub with improved policies and relaxed regulatory framework. The use of advanced technology and R&D make it a reliable country. It is attracting increased businesses from all over the world. For setting up a factory in India you can hire Consultants For Indian Manufacturing Sector. SM Management Services can help their clients in setting up and incubating businesses in India.
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