A Study on Factors Driving Growth in the Indian Manufacturing Sector

The Indian manufacturing sector provides livelihood to more than 14 million people (43.4% of the workforce) and contributes ~16% to India’s GDP. The Indian government has prioritized growing the manufacturing sector over the last ten years with several policy initiatives introduced under the “Make in India” campaign. Besides, major economies across the globe are diversifying their supply chains away from China. This is the result of global supply chain disruption that the world experienced as an after-effect of the COVID-19 pandemic and due to over reliance on China in the manufacturing space. This has opened new ways for the Indian manufacturing industry to prosper. The Indian government, aware of the situation, plans to boost the manufacturing sector’s contribution to the economic output by up to 25% by 2025. In this case study we discuss the key factors and government policies that is likely driving the growth of manufacturing in India.