India Becomes World's Fifth-Largest Manufacturing Country in 2023-24
India Becomes World’s Fifth-Largest Manufacturing Country in 2023-24
New Delhi, August 4, 2024 — India has officially surpassed South Korea to become the world’s fifth-largest manufacturing country in the fiscal year 2023-24. This achievement marks a significant milestone in India’s economic journey and reflects its robust industrial growth and diversification in recent years.
Economic Growth and Industrial Expansion
India’s rise in the global manufacturing rankings is driven by impressive performances in several key sectors, including automotive, pharmaceuticals, and consumer durables. The country’s manufacturing output has grown substantially, contributing to a larger share of the global market.
The government’s focus on initiatives such as “Make in India,” aimed at boosting domestic manufacturing and attracting foreign investment, has played a crucial role in this growth. Policies encouraging technological advancements, infrastructure development, and skill enhancement have also helped create a conducive environment for the manufacturing sector to flourish.
Automotive Sector Leads the Way
The automotive sector has been a major contributor to India’s manufacturing growth. With the increasing demand for vehicles domestically and internationally, India has become a hub for automobile manufacturing. Major car manufacturers have expanded their production capacities, and the country has seen a surge in exports of both traditional and electric vehicles.
India’s automobile industry is now recognized for its high-quality production and innovation, with significant investments in research and development. This growth is supported by the government’s emphasis on promoting electric vehicles and sustainable mobility solutions.
Pharmaceutical Industry Thrives
India’s pharmaceutical industry continues to be a global leader, with the country being one of the largest producers of generic medicines. The industry’s robust infrastructure, skilled workforce, and cost-effective manufacturing processes have enabled India to maintain a competitive edge in the global market.
During the COVID-19 pandemic, India’s pharmaceutical sector played a pivotal role in supplying essential medicines and vaccines worldwide, further strengthening its reputation as a reliable manufacturing powerhouse.
Consumer Durables and Electronics
The consumer durables sector has also witnessed substantial growth, driven by rising consumer demand and increased purchasing power. India has become a preferred destination for manufacturing consumer electronics, with many global companies setting up production facilities in the country.
The government’s push for digitalization and the proliferation of e-commerce have further fueled the demand for consumer electronics, making India a significant player in this segment.
Challenges and Future Prospects
Despite these achievements, India faces challenges such as infrastructure bottlenecks, regulatory hurdles, and the need for further skill development. Addressing these issues will be crucial to sustaining and enhancing the country’s manufacturing growth.
Looking ahead, India aims to continue its upward trajectory by focusing on advanced manufacturing technologies, sustainable practices, and expanding its presence in emerging markets. The government’s commitment to creating a favorable business environment and fostering innovation will be key to maintaining India’s position as a global manufacturing leader.