INDIA VISION

2020 : INDIAN
ECONOMY
AJAY
RAVI
ROHIT
CHIRAG

Manufacturing Sector
contribution to GDP 25% in 2020

Presentation Flow
Current Scenario
Problem
Possible reasons for manufacturing
sector slow growth
Why growth of manufacturing
sector is important for India ?
Possible Solutions

Current Scenario 2013

Manufacturing Growth Rate 2.5%
GDP Growth Rate 4.8%
Current Account Deficit- $70 billion (3.8%
of GDP)
Inflation Rate 6.1%

State of Manufacturing
Sector

State of Manufacturing
Sector

Problems
Manufacturing sector contribution
to GDP is low 15%
The overall growth of the economy
is slow because of slow
manufacturing sector growth.

Problems

Unemployment
Widening CAD
Fiscal deficit Rs 5.1 trillion (4.8 %
GDP)
Rupee Depreciation

Why growth of manufacturing sector is important

for India ?

Employment generation
Increase exports
Reduce CAD
Rupee Appreciation

Important Government
Attempts
National Manufacturing Policy (NMP)
Passed in 2011
Increase the share of manufacturing in
GDP to at least 25 %
Create 100 million jobs by 2022
Enhance global competitiveness of the
sector

Increase gold import duty 10%

Possible Solutions
Effective implementation of plans
and policies
Improve physical infrastructure
Vocational Education skill
development
Reduction of regulatory burden
Reduction of transaction costs for
exporters

THANK YOU