Kearney in association with WEF(World Economic Forum) released a report titled, ‘Shifting Global Value Chains: the India Opportunity’ states that Coordinated action between the government and the private sector can help create globally competitive manufacturing companies in the country.
- The report said India’s manufacturing sector exports can help drive more than USD 500 billion in annual economic impact for the global economy by 2030.
About the report–
The report discussed manufacturer and supply chains in India.
- Manufacturing sector’s share towards India’s GDP in 2030 could potentially reach 19-20%.
- The $500 billion estimate is based on India’s real GDP of $2.869 trillion in 2019, a GDP forecast for 2030 of between $8 and $9 trillion despite the pandemic. Therefore the estimated growth rate of approximately 10% and share of India’s Manufacturing sector to GDP would be around 14-16%.
- The report highlighted some possible pathways for India to realise its manufacturing potential- such as
i.Coordination between government and private sector to create globally competitive manufacturing companies
ii.Focus on building capabilities through workforce skilling, innovation, quality, and sustainability
iii.Reducing trade barriers to enable competitive global market access for Indian manufacturers
iv.Reduce cost compliance and establish manufacturing capacities
v.Focusing infrastructure development on cost savings, speed, and flexibility
- Focus should be on infrastructure building.
The report highlighted, India has Potential and assets in the field of domestic demands, demographic advantage with large working population and government support to encourage manufacturing in a unique posting.
About World Economic Forum (WEF)
Founder and Executive Chairman– Klaus Schwab
Headquarters – Cologny, Switzerland