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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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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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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