What can Make in India offer the world?
3 min read 25 Feb 2016, 04:06 PM ISTHere we take a look at some of the industries Modi hopes will propel India to the top of the world's manufacturing tree
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New Delhi: Indian Prime Minister Narendra Modi’s glitzy campaign to promote India as the world’s next manufacturing hub appeared to receive a major boost last week as the widely-touted “Make in India" publicity drive came to a close in Mumbai.
Investment pledges soared on the final day to hit Rs15.2 trillion — more than triple the amount India has attracted through foreign direct investment since Modi came to office in May 2014. Skeptics, however, have questioned just how much of that cash will ever actually materialize.
Here we take a look at some of the industries Modi hopes will propel India to the top of the world’s manufacturing tree.
Automobiles
Ford factory in Chengalpattu near Chennai
With 18 cars per 1,000 people India lags behind China and Indonesia. However, it is still the world’s fifth-biggest automobile market and could climb to number three by 2019, according to some analysts. More than 622,000 cars were exported from India last year.
Chemicals
Fabric Dyes in the Dharavi slum of Mumbai.
India is the third-largest producer of chemicals and petrochemicals in Asia, and ranks as fourth-largest global producer of agrochemicals. A large population, the domestic market’s dependence on agriculture and strong export demand are key growth drivers for the industry.
Electronic systems
PCB circuits under a magnifier at the Su-Kam Inverter factory in Gurgaon.
Modi’s vision is for global chip makers to build semi- conductor factories in India, which would in turn attract manufacturers of electronics goods such as smartphones and tablets.
Food processing
Ice pops at the Mother Dairy ice cream plant in New Delhi.
India ranked sixth in world exports of agricultural produce in 2013, with fruit, pulses, rice, vegetables and tea among the foods powering the agriculture economy.
Information technology
Tata Consultancy Services campus in Chennai
India accounts for about two-thirds of the global IT outsourcing market, making it the largest exporter of IT services in the world. With a workforce of some 10 million, the industry is one of the largest white-collar job creators in the country. Firstcall Research estimates the industry will continue to grow at 9.5% in the five years to 2020.
Leather
A tannery in Kolkata.
Thanks to a large cattle and buffalo population, India has emerged as the world’s second-largest producer of leather footwear and clothing, churning out two billion square feet of leather a year. The industry’s annual turnover is more than $12 billion and exports are projected to grow at 24 percent annually over the next five years.
Pharmaceuticals
Lupin Ltd. pharmaceutical plant in Goa.
With exports to over 200 countries, India’s pharmaceutical industry is the world’s largest supplier of cheap generic drugs. Outbound shipments jumped to $15.5 billion in the year ended March 2015, from $10.4 billion four years earlier. A local unit of Fitch Ratings estimates the industry will grow 20 percent annually over the next five years.
Ports and shipping
Port of Haldia, West Bengal.
With over 7,500 kilometers of coastline featuring 12 major ports and 200 minor ones, maritime transport contributes to 90% of the country’s trade by volume and 70% by value. The government has plans to implement full mechanization of cargo handling and movement at ports.
Textiles
A file photo of cotton harvest at village Bhad (Khamba block), outskirts of Amreli-Gujarat
India is the largest producer of cotton in the world, with the domestic textiles and apparel sector employing about 45 million people.
Thermal power
NTPC coal-fired power plant in Badarpur, Delhi.
Thermal power accounts for almost 70 percent of India’s 284 gigawatt power capacity, with plants mainly fired by coal and gas. While the pace of economic growth stokes demand for power — the country seeks to add another 88.5 gigawatts by March 2017 -- India has an issue simply lighting homes. Blackouts are frequent.
Tourism
The Golden Temple, Amritsar.
From the sunny beaches of Goa to the crowded ghats of Varanasi and everything in between, the country is a riot of color. Tourism and hospitality contributed about $44.1 billion to India’s GDP in 2015 and is likely to touch $88.6 billion by 2025, or 2.5 percent of GDP, according to some estimates. Bloomberg
