Achieving 25% of GDP from manufacturing, 100 million jobs by 2022 difficult: Survey
MUMBAI: Considering the rate at which the Modi government's ambitious 'Make in India' initiative is progressing, its target of creating 100 million jobs and achieving 25 per cent of GDP from manufacturing sector by 2022 may be difficult to meet, says a recent survey.
Though the performance of the manufacturing sector has improved in the past few months, the progress is not enough to achieve the targets of 'Make in India' drive, according to a joint report by research firm The Boston Consulting Group and apex industry chamber Confederation of Indian Industry.
The policy has envisaged manufacturing to contribute around 25 per cent to the overall Gross Domestic Product, but as per the statistics, manufacturing growth has not been able to keep up with the GDP growth.
While the country's share in the global GDP increased from 2.2 per cent in 2009 to 2.5 per cent in 2013, its share in the global manufacturing has decreased from 2.2 per cent to 2 per cent during the same period.
According to the report, in contrast to the 'Make in India' target, manufacturing still accounts for only 17 per cent of India's GDP and has remained stagnant at this level for the last five years.
On the contrary, strong manufacturing economies have more than 20 per cent of their GDP coming from this sector.
The report further noted that manufacturing exports increased from USD 188 billion in 2011 to USD 203 billion in 2014. India's share in global market still remains at 1.5 per cent.
"As expected, this shortfall is reflected in job creation in this sector. 'Make in India' aspires to create 100 million jobs by 2022 in the manufacturing sector.
"However, in reality, only four million jobs are estimated to have been created in the sector since 2010. Extrapolating this growth of 1.5 per cent, we will fall short of the target by 92 million jobs by 2022," the report said.
Source : economictimes.indiatimes.com