Why Investing in Manufacturing Sector is Apt Move for Entrepreneurs

Manufacturing industry has been increasing manifold over the past years; increasing domestic consumption plunged and expanded the country’s manufacturing hub
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • May 17,2021
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  • 332 Mins Read

The manufacturing industry is a wide realm in the Indian economy. It has grown manifold over the past years. Increased domestic consumption has plummeted and expanded the country’s manufacturing hub. Capital infusions made by domestic players and FDI are other factors that contributed to the growth of the sector. According to a report by IBEF, cumulative Foreign Direct Investment (FDI) in India’s manufacturing sector reached $91.28 billion between April 2000 and September 2020. In May 2020, the Indian government increased FDI in defense manufacturing under the automatic route from 49 per cent to 74 per cent.

The Growth of the Manufacturing Sector 

As compared to the previous year (2020), the Indian manufacturing segment has augmented again. A significant amount of improvement has been witnessed in the sector, following the pandemic. According to the latest data by the Ministry of Statistics and Programme Implementation, the country produced the highest number (77.7 per cent) of motor vehicles, trailers and semi-trailers followed by computer, electronic and optical products (74.7 per cent) and electrical equipment (50.3 per cent) as on March 21. 

 

(source:Ministry of Statistics and Programme Implementation) 

The figures are evidence of a promising future that the manufacturing sector holds. Even, the genesis of the pandemic has indirectly increased the significance of the sector. Here is a list of manufacturing business that can be started presently: 

  • Organic Farming 
  • Milk Products 
  • Agribusiness 
  • Toy Manufacturing 
  • Bakery Business
  • Candle-making Business 

Pharmaceutical Segment--Upholding the Indian Economy 

During the onset of the epidemic, people and companies globally began depending on the pharmaceutical sector--which creates medicines and medical equipment. According to GoodReturns' report, generic drugs from pharmaceutical firms account for 20 per cent of global exports, making India the largest supplier of generic medicines. Pharma companies like Dr. Reddy, Glenmark, Cipla, and Biocon have benefited from the ongoing health crisis. Owing to this, the pharmaceutical sector becomes one of the niches wherein aspiring entrepreneurs can enter. 

Electric Vehicle--Reversing Environmental Damage 

The electric vehicle (EV) manufacturing sector is one of the realms that is catching the attention of investors. The pollution level in India has reached an alarming rate, in turn, deteriorating air quality. To address this issue, the Indian government has taken a vital step to uphold the EV sector. According to a report by the Times of India, the government has lately given a nod to the Production Linked Incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries at an estimated outlay of INR 18,100 crore. 

As per the official statement, ACC batteries can store electrical energy either as an electrochemical or as chemical energy and convert it back to electric energy as and when required. The move was done to boost the manufacturing of electric vehicles. 

Apart from these manufacturing businesses, novel entrepreneurs have a wide variety of other business opportunities as well. If you know profitable manufacturing business ideas, then share them with us in the comment section. 

 

 

 

  

 

 

 

 

 

 

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