National Manufacturing Policy Recognizes the Importance of Manufacturing Sector in India

Keywords: India, Factory of the Future, National Manufacturing Policy, Smart Manufacturing, Sustainable Technology.

India is beginning to recognize the manufacturing industry's importance to the country's long-term economic growth. Recently, the State has an-nounced policy initiatives that will spur the country's industrial growth.

India's economy, which in recent years has been growing robustly, differs significantly from the economies of many other countries. Unlike most other countries in Asia, including China, which depend on exporting manufactured goods, India's economy is driven by domestic demand. Private consumption accounts for almost 60 percent of India's GDP, compared to China's 40 percent, and its role in the country's economy is closer to that of developed economies, such as Japan and the United States.

Investment, which contributes to more than 40 percent of China's GDP, contributes to less than 30 percent in India. Yet another difference is that growth in the manufacturing sector has led the economic resurgence of almost all countries; whereas in India, the service sector contributed largely to the country's economic growth. While some of these factors will protect India's economy from the impact of the current Euro zone crisis, analysts recognize that the country needs a strong manufacturing industry to sustain its growth momentum in the long term and overcome some serious domestic challenges in the short term.

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