India's Manufacturing Sector Positioned for Dramatic Growth

India's manufacturing sector is set to significantly impact the economy, with its GVA contribution projected to increase from 14% to 21% by 2032. Supported by capital expenditure and strategic initiatives like the PLI scheme, manufacturing is crucial to India's goal of becoming a USD 10 trillion economy by 2034.

India's manufacturing sector is on the brink of substantial growth, poised to raise its contribution to the Gross Value Added (GVA) from 14% currently to 21% by 2032, according to a Sharekhan report.

The sector's incremental contribution is expected to surpass 32%, underscoring its pivotal role in transforming India's economy, aiming to reach a USD 10 trillion milestone by 2034. This growth is propelled by robust capital expenditures from both the government and corporations.

Key drivers of this growth include increased infrastructure spending on ports, railways, and other critical areas, as well as the government's Production-Linked Incentive scheme which incentivizes manufacturers through a performance-driven approach. These strategies are expected to firmly establish India as a manufacturing powerhouse on the global stage.

(With inputs from agencies.)