Abstract

The research assesses the Indian Manufacturing Sector and provides an insight into the ups and down it has witnessed. Since India’s independence, the Indian Manufacturing Sector has witnessed a steady growth, but not up to its full potential. Currently, the highest contributor (% wise) of Indian economy is Services Sector. Why has Indian Manufacturing Sector not been a major contributor? The research identifies the aspects due to which India’s Industrial sector suffer. To revive this sector, India’s new government has taken the initiative of “Make in India”, which tries to rectify the shortcomings in the Industrial Sector. The research also tries to observe the best manufacturing practices followed globally by aggressively developing and developed economies, which can be feasibly incorporated in India.

TABLE OF CONTENTS

Introduction

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Historically, India has always been an agricultural nation. The major share of GDP was from this sector till the early 1950s and 60s. Down the line, its share began to decline and service sector started to emerge. Today, service sector plays a prominent role in the economy of India. On the other hand, industrial sector has been growing right from the beginning but the growth is not as consistent as that of service sector. This raises the question that India, in spite of having a huge population and demand, lags behind in the manufacturing sector. As clearly seen from the graph, the representation of each sector in the GDP of the country; manufacturing doesn’t contribute heavily.