Make in India through Manufacturing-Led Growth: Converging Reforms for Global Competitiveness

Abstract

A globally competitive economy strives for a balanced growth in all sectors of economy. Over more than two decades, India's history of economic reforms is characterised by the service-driven growth, huge potential market and handsome demographic dividend yet the share of her world trade is still below one percentage point. Service sector contribution in GDP has crossed 60% but the manufacturing sector is still roaming around 15% of the GDP. The relativelyl agged ranking in Global Competitiveness Index (GCI) over the last 10 years has posed a serious question before the policy planners to devise a set of reforms in manufacturing sector for achieving balanced growth and improving competitiveness ranking. Although service-led economy has created employment opportunities to skilled people, the unskilled and semi-skilled population find it difficult to gain employment. The countries enjoying higher rankings on competitiveness index are better off in manufacturing leverage. The recent policy reforms by the government aim to address the skewed growth pattern and oriented towards achieving global competitiveness. Based on secondary data from authenticated publications, this paper is authored with an objective to review the policy pitfalls and government's initiative to boost manufacturing for achieving global competitiveness. The causes of lacklustre performance of manufacturing and convergence issues of the reforms have also been analysed.