Manufacturing has emerged as one of the high growth sectors in India. Indian Government had launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy.
It’s an initiative to (a) inspire confidence in India’s capabilities amongst potential partners abroad, the Indian business community and citizens at large; (b) provide a framework for a vast amount of technical information on 25 industry sectors; and (c) reach out to a vast local and global audience via social media and constantly keep them updated about opportunities, reforms, etc.
India is expected to become the fifth largest manufacturing country in the world by the end of year 2020*. The demographics of the country seems to play a crucial role in transforming India to the greatest manufacturing hub.
The statistics indicate some striking and significant differences. About half of the country’s population is under the age of 26 and the median age of 29 is expected by 2020. In that same year, the median age in China is expected to be 37. Indeed, the working-age population in China is already at its decline. Every year, the labor pool shrinks by 0.5%. Meanwhile, 250 million people are set to join India’s workforce by 2030.
The rise in the WAP (working age population) in India could lead to higher disposable income and consumption – and this could give the Indian economy and manufacturing industry a great boost. India must capitalize on this advantage, it could rapidly gain ground and start registering double-digit growth. In the immediate future, China’s stock market may perform better than India’s. But in the medium- to long-term, the positions could be reversed as India’s demographic dividend kicks in.