Manufacturing in India

MANUFACTURING CHALLENGES FOR THE EMERGENT INDIA
Introduction
Manufacturing industry plays a vital role in growth of any country. Manufacturing industry also affects everybody’s life directly or indirectly as any article anybody possesses or use in routine is the product of raw material which has gone through various manufacturing processes. The articles used by common people may be as small as nail to as big as the transport vehicles. In this sense, manufacturing industry satisfies the material needs of human. Therefore it is important to have healthy and vibrant manufacturing sector for welfare and overall progress of the country.
For a long time after independence, India’s economic progress was stagnant. The economic reforms started in 1991 played an important role in improving India’s economy. The Gross Domestic Product (GDP) in India expanded 7.7 per cent in the second quarter of 2011 over the previous quarter.   Now India is emerging as a global economic superpower. But India’s economic progress till date is largely due to the good role performed by the service sector.   At the global level India is very competitive in the service sector. The role of manufacturing industries in India’s growth story has been limited so far. This situation is now improving due to emergence of some large companies in manufacturing sector   that have vision and talent to compete and rise at local as well as the global level. Many core manufacturing companies in India has established their plants overseas. At the same time, many foreign companies are also institutionalizing their plants in India.
Growth of Indian manufacturing sector during the quarter ended on March 31,2011 was 5.1% against 7.2% of the world and same during the quarter ended on June 30,2011 was below 5% against 5.2% of the world according to report on ‘World Manufacturing Production’ Quarter 1, 2011’ and ‘Quarter 2,2011’ respectively by UN Industrial Development Organisation(UNIDO). Indian manufacturing sector...