Change in the Indian Manufacturing Industry

The Indian manufacturing sector is set to see a decline in this year, which is extremely shameful considering that the country is so far behind in the development curve. At this stage of development, India should have a large manufacturing sector providing employment to the hundreds of millions of low skilled workers. However, bad policies, regulations and unbridled corruption has ensured that most citizens in India are forced to work at low wages.

The Department of Industrial Policy and Promotion (DIPP) is all set to bring a major change in the manufacturing industry in India. DIPP plans to bring changes in the related government policies like the land acquisition law. The Secretary of DIPP plans the following series of actions to be taken before the new Government swears oath by the end of May this year:

i) to bring more foreign direct investment (FDI) in many more sectors in India

ii) to change labor laws

iii) to amend land acquisition law.

All these alteration in policies aim at giving a boost to the Indian manufacturing industry, in a way that it creates more jobs for the jobless Indian low skilled youth. Given below is the estimated growth rate for India this year, which has almost halved from the growth number in 2010-11. It narrates a sad and pitiful story of India which is a developing economy, but has failed to provide decent jobs to it millions of youth. The GDP share of the manufacturing industry has also declined from 17% in 2008 to 15% in the current year.  The Indian manufacturing industry is in a dire need for a major overhaul. I really wish that with the new government in place, there be a fresh chance for a better and booming Indian manufacturing sector.

Source: ET