Even with a significant uptick in services sector towards India’ GDP contribution,
manufacturing continues to be the back-bone for balanced growth and ability to meet
not just the local demand but global demand as well on account of India’s resource
richness and cost advantage. At the same time, manufacturing has undergone erratic
growth on account of high input cost, rising interest rates, insufficient infrastructure
and certain quarters with blips in both domestic and global demands. Some of the
key segments that comprise Indian manufacturing industry include textiles, capital
goods, machine tools, cement, consumer durables, forging, metals, chemicals, auto,
tyre, leather, paper and miscellaneous industries.
Manufacturing makes up about a third of China’ GDP as compared to India where its
less than 20%, quite same as it was two decades back. India is now on a track for
catching up with a maturing supplier base, influx of seasoned global firms and demand
explosion have brought transformation in last couple of years and would continue
to do so. We shouldn’t overlook the fact that even with all the constraints, India
is amongst the top 10 manufacturing nations. As a firm, we are largely optimistic
on manufacturing and would continue to help medium to large businesses raise capital
for organic as well as inorganic opportunities, help build growth strategies, identify
and seize on such opportunities.