How can the government revive manufacturing?
Manufacturing growth will remain subdued until 2018-19 and achieving 7.5%- plus GDP growth after that will require a series of measures for manufacturing
After decelerating for five quarters, the growth in gross domestic product (GDP) recovered to 6.3% in Q2 of 2017-18 on account of a rebound in manufacturing. The projected growth at 6.5% in 2017-18 is premised on high growth in services in the next two quarters, though manufacturing growth may remain subdued. Our assessment also suggests manufacturing growth will remain subdued until 2018-19. Achieving 7.5% plus growth after 2018-19 will require a series of measures for manufacturing, which we outline below.