Presentation On Indian Manufacturing Sector

1. GDP-Manufacturing sector
Presented by
Sonam Gangwani
& Pallavi Sen
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2. AGENDA
• History of GDP
• GDP growth %
• Manufacturing sector
• Current Scenario
• State & Sector wise contribution to GDP
• Manufacturing & Employment Relation
• Government Initiatives
• Challenges faced by manufacturing sector
• Future outlook
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3. HISTORY
GDP was first developed by SIMON KUZNETS.
Basically after Breton Woods Conference, held in
New Hampshire in 1944,GDP became the main
tool for measuring a countries economy.
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4. 9.48% 9.57%
9.32%
6.72%
8%
8.60%
6.88%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
GROWTH % OVER PAST 8 YRS
GROWTH % OVER PAST YRS
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5. Different Sectors
Agriculture sector
Manufacturing sector
Service sector
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6. Basic goods
Capital
goods
Intermediate
goods
Consumer
goods
Electricity
Coal
Fertilizers
Cement
Steel casting
Commercial
vehicles
Electric
motors
Wagons
Heavy
locomotives
Giant tyres
Petroleum
Bolts
Paints
Jute
Plywood
Paper
Sugar
Wheat
Soap
Phone
Tea
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7. MANUFACTURING SECTOR
Backbone of any economy
Fuels growth & employment
generation
Catalyst for agricultural & service
sector
Barometer of overall health of
economy
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8. Top sectors in Indian manufacturing
 AUTO INDUSTRY
 CHEMICALS
 ELECTRONICS
 ENGINEERING
 FOOD PROCESSING
 GEMS AND JEWELLERS
 LEATHER
 MACHINE TOOLS
 TEXTILES
 WATER
 MINING
41%
25%
17%
14%
2%
1%
contribution %
Engineering
Gems &
Jewellery
Chemicals
Textile &
products
Leather &
products
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9. Current scenario
Spectacular growth after slowdown in 90’s
More diversification & better availability of
skilled man power
Significant player in aerospace industry
undergoing transformation
Generates about 45 million jobs, 80% of which
are unorganized segment
Potential to create up to 90 million jobs by
2025
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10. STATE-WISE CONTRIBUTION
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11. SECTOR WISE CONTRIBUTION
TOWARDS GDP
20% 19% 18% 17% 17% 16%
26% 25% 26% 26% 26% 25%
54% 56% 56% 57% 58% 59%
0%
10%
20%
30%
40%
50%
60%
70%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
AGRICULTURE MANUFACTURING SERVICE
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12. Manufacturing & Employment
Relation
28%
22%
19% 18% 17%
15%
13% 12% 11%
china germany japan russia brazil thailand usa india uk
Employment contribution
china germany japan russia brazil thailand usa india uk
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13. Government Initiative
National manufacturing competitiveness
council (NMCC)
Set up in September 2004
Inter disciplinary & autonomous body at
highest level
Sustain growth of manufacturing industries
Suggest ways & means for enhancing sub
sectors having potential of global
competitiveness
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14. CLASSIFICATION IN MANUFACTURING
SECTOR(12TH PLAN)
SECTOR OF
STRATEGIC
IMPORTANCE
SECTOR OF BASIC
INPUT
SECTOR OF DEPTH
AND VALUE
ADDITION
SECTOR FOR
EMPLOYMENT
DEFENCE EQUIPMENT
AEROSPACE
SHIP BUILDING & REPAIR
CAPITAL GOODS
STEEL
MINERAL EXPLORATION
FERTILIZER
CEMENT
AUTOMOBILE
ELECTRONICS
PHARMA
CHEMICAL
PAPER
TEXTILE
FOOD PROCESSING
LEATHER & LEATHER GOODS
GEMS & JEWELLERY
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15. CHALLANGES
 Manufacturing sector requires urgent attention both at macro and
micro levels
 Tax burden on MSME
 Enhancing the skills of the workers
 Up gradation of technology
 High cost of production
 Quality of products
 Manufacturers operating beyond their capacity
 Expensive financing
 Low labor productivity
 Poor infrastructure
 Raw material cost
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16. Expectations
Increase in rate of job creation
Focus on level of domestic value addition
Enhance the global competitiveness through
appropriate policy support
Ensure sustainability of growth
Increase in manufacturing sector growth to 2-
4% more than GDP growth for the economy
and increase share to 25% of overall GDP by
2025
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17. Growth expectations for 2012-13 compared
with 2011-12
SECTOR GROWTH EXPECTATION
CHEMICALS LOW
FOOD PRODUCTS MODERATE
ELECTRONICS & ELECTRICALS LOW
TEXTILES MODERATE
CAPITAL GOODS LOW
STEEL & METALS LOW
AUTOMOTIVE LOW
CEMENT STRONG
LEATHER & FOOTWEAR MODERATE
TYRE LOW
MACHINE TOOLS LOW
TEXTILES MACHINERY MODERATE
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18. Potential
Only manufacturing sector has the capacity to absorb
large labor pool of the country(CISCO)
Manufacturing sector has great potential to employ
people and increase the income levels(FICCI)
India placed 2nd in the Deloitte Manufacturing
Competitive Report
India has beaten Brazil in the production of motor
vehicles which is good sign for countries growth in
value added manufacturing
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19. Sources
www.ibef.org
www.reuters.com
www.wikipedia.com
www.google.com
www.investopedia.com
www.investorzclub.com
www.machinemag.com
www.articles.economictimes.indiatimes.com
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20. Submitted to: RVM Finishing School &
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