The economic development of a region is basically identified by the different types of occupational activities undertaken namely agriculture, manufacturing, services, etc. India has been an agriculture-centric country where the industrial developments have happened steadily from time to time. The manufacturing industry in India comprises of industrial production of core mechanical components, automobile, chemicals, electronic products, textiles and clothing, cosmetics, pharmaceuticals, Fast Moving Consumer Goods (FMCG), Home Appliances, and many more.
Manufacturing is basically defined as that business which deals with producing ready finished products by processing some raw material. All the products we use in our daily life come out as a result of manufacturing. Today, the manufacturing industry assumes crucial importance in the economy at local, regional, as well as national levels.
Exploring the Indian Manufacturing Industry in Detail
The Background
It is observed that some of the states have high industrial zones having hundreds of different companies manufacturing different goods and products. The coastal regions have a developed fishing and shipping industry with manufacturing industries producing different types of regional food products. Similarly, regions of Maharashtra, UP, Karnataka, Tamilnadu, Gujarat, states have high industrial zones housing several manufacturing companies.
These manufacturing industries are of several types based on their processes, technology, and the products they produce. They play a very important role in economic development by boosting trade and creating employment. The industries are facilitated for growth and innovation through the loans that various companies take whereby these loans help them support their objectives and also come up with capital to be used in modernizing technologies and extending the production capacities. Therefore, many large corporations invest in manufacturing industries that will help fuel their proper functioning and scaling operations in order to meet the demands of the market.
Importance of Manufacturing Industry: Analysis
A manufacturing industry constitutes the backbone of overall progress in terms of economic development; thus, they underline their importance in the Indian industrial scenario.
Wealth Creation Through Value Addition
Countries that have a wide range of high-value products from the raw material by processing it have more chances of further prosperity. India’s way forward has to be rapid expansion and upgrading of its manufacturing sector so as to make it the global hub for high-quality products.
Boosting Trade and Foreign Exchange
Trade and commerce increase when manufacturing industry comes into existence. The export of these products allows having precious foreign exchange that makes the country grow economically.
Eradicate Poverty and Unemployment
The manufacturing industry requires labor in the form of skilled, semi-skilled, and unskilled labor for the manufacturing process. Along with the machinery, the contribution of labor to Indian manufacturing industry is phenomenal. Any manufacturing company big or small provides employment to a large section of people consisting of engineers, accountants, clerks, technicians, machine operators, turners, fitters, electricians, feeders, etc.
Contribution to Modernization of Agriculture
By encouraging employment opportunities in the secondary and tertiary sectors, manufacturing Industry promotes modernization of agriculture and minimizes its dependency. Many companies in manufacturing industries manufacture chemicals, pesticides, fertilizers, cattle foods, agricultural tools, and other equipment.
Classification of the Manufacturing Industry
On the basis of the capital investment, the manufacturing industry is categorized in the two divisions of Large Scale Industries and Small Scale Industries.
The large scale industries usually establish and operate on a considerable amount of capital investment and are involved into huge quantities of products. These are basically capital-based with a large number of people working in it daily.
The small scale industries are operated in smaller volume through fewer numbers of people with limited number of workforce involved in the manufacturing process.
Ownership-based classification of the manufacturing industry is categorized into four major sections that include Public sector, private sector, Joint sector and cooperative sector.
Opportunities in Manufacturing Industry
This manufacturing industry of India is growing vastly in the quality, quantity and variety of the products manufactured. Indian manufacturing industry is evolving in the global markets adhering to the industry norms and certifications by providing high quality of products. India exports automobiles, earthmovers, rice, jewelry, diamonds, medicines, refined petroleum, dairy and poultry products, cotton yearn, fabrics, spices, fruits and vegetables, and so on.
The recent Make-in-India initiative of our honourable prime minister Mr Narendra Modi, has attracted a large number of global MNCs who have set up their manufacturing plants in India for their export volumes and to cater to the Indian market as well. MNCs including Volkswagen, Renault, Honda, Suzuki, TDK Group, Vivo mobile, Wistron, etv..
Vaccines could assure and indeed have succeeded in saving lives, which made India the largest manufacturer and exporter of COVID-19, Malaria, Dengue, Cervical cancer, and other diseases vaccines. The newly designed indigenously developed Vande Bharat Trains became a milestone in the semi high-speed trains category. Equipped with modern state-of-art coaches, these provide the traveller a modern and comfortable riding experience. Indian electronics sector is growing fast to reach $155 billion in 2023. The country gained the position of the world’s second largest manufacturer of mobile phones and has cut its reliance on smartphone imports by manufacturing nearly 99% of its requirement locally.
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