It's Time to Boost Manufacturing Sector

To boost the manufacturing sector, the Indian government introduced Samarth Udyog Bharat during the pandemic
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Aug 27,2021
  • |
  • 10 Mins Read

The Indian services industry has grown exponentially over the years. It noy only shore up the economy but provided employment opportunities as well. However, the last year (2020), the services industry was hammered owing to the pandemic, thus creating an imbalance in the economy. It has begotten variation in the manufacturing sector. 

When pandemic-led lockdown occurred, various industries such as airlines, hospitality management and cinema were closed down, resulting in rampant layoffs. This also caused a shift as unemployed people began seeking work in farms or small manufacturing units. 

According to a report by The Indian Express, Ministry of Statistics & Programme Implementation’s data shows that the index of industrial production (IIP) declined by 10.4 per cent to 118.1 per cent in July. The decrease was mainly witnessed in the manufacturing, mining and power generation sectors. The IIP had grown 4.9 per cent in July 2019. The industrial growth so far in the fiscal year 2020-21 (April-July) has contracted 29.2 per cent, compared to a 3.5 per cent rise in the corresponding period year ago. 

Focusing on Manufacturing Sector 

The Indian business ecosystem is not looking upon the manufacturing sector. While, in the alternate case, agriculture and services sectors are getting immense notice. According to Industry experts, the Indian government should focus on bolstering labour force productivity to achieve economic growth. 

According to a report by the Ministry of Statistics and Programme Implementation, manufacturing production in India advanced 13 per cent from a year earlier in June of 2021, led by basic metals (24 per cent), coke and refined petroleum products (5.4 per cent) and motor vehicles, trailers and semi-trailers (61.5 per cent). Also, output rose for mining (23.1 per cent) and electricity (8.3 per cent).

To boost the manufacturing sector, the Indian government introduced Samarth Udyog Bharat during the pandemic. Within this initiative, five enginnery facility centres were established aiming to digitise manufacturing units in the country. Besides this, here are some more manufacturing initiatives that you are not versed with: 

Make in India Initiative 

It has been released to render capital infusion, aid innovation and create a manufacturing ecosystem meeting global standards. Afterwards, a series of manufacturing policies were rolled out such as National Manufacturing Policy and National Industrial Corridors, etc. 

Skill Development Initiative 

A new ministry was established and named the Ministry of Skill Development and Entrepreneurship to augment skill as well as  entrepreneurial activities. Along with this, several norms for skill training were introduced in various departments of the government. 

The government has facilitated companies in running their business. They have liberated companies in the licensing process and also, removed restrictions from various defense products.

Please add your Comment

More from Jaspreet Kaur

Our Group Companies

Get Industry First Insights

Sign up for our exclusive Newsletter

  • Follow BusinessEx
Stay tuned & get updated