India’s manufacturing prospects robust in the long-term: BCG

Mumbai: Indian manufacturing is at its lowest point in the last 10 years, but top executives think its long-term prospects are robust, according to a report released by lobby group Confederation of Indian Industry (CII) in partnership with Boston Consulting Group (BCG) on Friday.

The share of manufacturing in the gross domestic product was 15.1% in the 2013 fiscal year, the lowest in a decade. Industry has been reeling under a depreciating currency and policy bottlenecks. 

 

The share of manufacturing in the gross domestic product was 15.1% in the 2013 fiscal year, the lowest in a decade. Industry has been reeling under a depreciating currency and policy bottlenecks. 

 

Economic growth in the country slowed to 5% in the year ended 31 March, the lowest in 10 years. 

 

But 70% of top executives surveyed by BCG expect manufacturing to grow faster in the next five years as compared with the last five, the report says. Companies are also more confident about exports and have determined them as the key demand-driver. 

 

There has been a 16% increase in exports compared to 2012, adds the report, titled Powering Past Headwinds- Indian Manufacturing: Winning in an era of Shocks, Swings and Shortages. BCG surveyed 75 top executives across the manufacturing sector in India. 

 

“All the CEOs believe that India has a great future, they believe that we are extremely competitive, but we need to have a more conducive environment to create demand, and leverage on the skills, capabilities and the competitiveness,” said Arindam Bhattacharya, managing director, Boston Consulting Group, India. 

 

RANJAY KUMAR

PGDM 1st YEAR