India’s Manufacturing Industry accounts for around 18% of India’s total GDP and employs approximately 12% directly. SME and MSME make up 90% of India’s vast manufacturing sector. Thanks to new policies like The National Manufacturing Policy (25%) the industry can contribute more than 25% to the GDP, employing more than 100 million workers. Here are some of the most profitable.
Agrochemicals India is the fourth largest producer of Agrochemicals worldwide. India’s primary sector, Agriculture, is the largest employer. As such, it has an insatiable need for agrochemicals. There are many manufacturing companies that can be or are established in villages, ranging from large-scale to small-scale. The market is expected to reach US 269.7 trillion by 2022.
Automobile/Auto Components India is projected to be the third largest automobile manufacturer in the world by 2025. A survey conducted in April 2018 in Bangalore, India showed that there were 4,000 new vehicles on the roads every day. This clearly boosts India’s Auto Components industry, which includes small and large-scale manufacturing. In 2016-2017, India’s exports of auto components totalled INR10.90 trillion. Automobile ranks third in India’s export industry with a value of $14.5billion.
Pharmaceutical Industry India is the largest global provider of generic medicines. The value of the global pharmaceutical market is between 3.6% and 3.6% for India’s domestic sector, while volume terms are around 10%. According to a 2017 report, 10,563 Indian pharmaceutical manufacturing companies were included (including large- and small-scale pharmaceuticals).
Textile IndustryFrom the time of colonization, India has been known for its cotton and textile use. According to the Ministry of Textiles, India’s textile industry contributed 14% to Indian industrial production, 4% of the country’s GDP, 13% of the country’s export earnings, and 14% of the country’s total industrial production in 2017. India is the world’s largest cotton producer, and China is its second largest exporter. This industry employs approximately 40 million people directly and 60 millions indirectly.
Food and Beverage – The F&B industry stands fifth largest in manufacturing sectors. It was ranked as the 13th largest foreign direct investment receiver in 2017. By market size India stands fourth in the world for the overall F&B industry making a revenue of $200 billion. India is the largest producer of pulses and milk, and second in rice, wheat and fruits and vegetables. About 40% of India’s consumer packaged goods are classified under this category.
Jewellery and Gems– India’s main exporter is the Gems and Jewellery industry, which accounts for about 7% of its GDP. It also contributes 15% to India’s total exports, which amounts to $42.6 million.
Packaging IndustryIt is the fifth-largest sector in India’s economy, with $32 millions in 2015. This sector has a significant impact on most other sectors of the industry. The stigma that packed goods have higher values is being ingrained in consumers’ minds, which has led to the rise of the packaging industry. This industry is supported by many industries and will continue to flourish despite the shift from plastic to paper and cloth.
Glass ManufacturingIndia has a per capita glass consumption of 1.8Kg. There are many applications for glass in architecture and construction. Most buildings, from apartments to office buildings to malls, use glass as well fiber glass as doors and walls as decor. India’s glass exports grew by an incredible amount from $225 million in 2012 to $639 million.
Rubber and Rubber ProductsIndia is the largest producer and third largest buyer of natural rubber. It produces over 35000 different types of rubber products. It is used in domestic and international trade. The annual export of natural rubber was $5 billion.
Metal SectorIndian metal companies are still profitable due to rising demand in capital goods and infrastructure. India is the third largest producer of steel, with 101.4 million tonnes of crude iron. The GOI has permitted 100% investment in the sector and exploration in the mining sector. This would increase the sector’s potential.