The industrial sector expected to grow by 6.2 per cent in FY-25 as per the first advance estimates of GDP, driven by robust growth in electricity and construction, says the Economic Survey 2024-25 tabled in Parliament by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman today. Fostering R&D investments, innovations, enhancing the growth and formalisation of smaller manufacturers will drive growth across various sectors, the Survey adds.

The survey also states that consumer-focused sectors like automobiles, electronics, and pharmaceuticals have emerged as growth drivers. The Economic Survey optimistically observes that with 2.8 per cent of the global share in manufacturing and with increasing shift of manufacturing production towards emerging economies like India and China; India stands a good chance of benefiting from trends in global industrial diversification.

CORE INPUT INDUSTRIES

1. Cement

The Survey mentions that India is the second largest cement producer in the world after China. The government's focus on mega projects like highways, railways, and housing schemes, coupled with rural development and industrial growth, is expected to fuel significant cement demand, the survey adds.

2. Steel Industry

The Survey observes that in April-November of FY25, the country’s crude steel and finished steel production registered a growth of 3.3 per cent and 4.6 per cent. The sustained growth in steel sector was fuelled by ongoing development projects and increased public infrastructure spending. The economic survey further adds, Government initiatives on housing, urban and rural infrastructure contributed to the rising demand.

3. Capital Goods

The government has been actively promoting Smart Manufacturing and Industry 4.0, supporting the establishment of Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog centres.

4. Automobile Industry

In FY24, the industry recorded auto mobile domestic sales growth of 12.5 per cent. Recognising the sector's potential, the government has extended the PLI Scheme by one year.

5. Electronics Industry

The Economic Survey notes that the domestic production of electronic goods has increased substantially from ₹1.90 lakh crore in FY15 to ₹9.52 lakh crore in FY24, growing at a CAGR of 17.5 per cent. It observes, programmes such as Make in India and Digital India, along with improved infrastructure, ease of doing business, and various incentives, have boosted domestic manufacturing and drawn foreign investments.

6. Textiles

The Survey says that textile industry is a major employment generator and it accounts for about 11 per cent of India’s manufacturing GVA. India is a leading producer of jute and ranks second globally in cotton, silk, and man-made fibre production, the survey adds.

7. Pharmaceuticals

The Survey highlights, Indian pharmaceutical industry is the world’s third-largest by volume. The industry boasts of a diverse product portfolio encompassing generic drugs, bulk drugs, over-the-counter medications, vaccines, biosimilars, and biologics, establishing a strong global presence. The Survey further states that the total annual turnover of pharmaceuticals in FY24 was ₹4.17 lakh crore, growing at an average rate of 10.1 per cent in the last five years. Furthermore, the Survey mentions that the medical devices industry in India is experiencing rapid growth, with a CAGR of approximately 15 per cent.

FLOURISHING INNOVATIONS AMIDST ASPIRATIONS OF ENHANCED R&D

The economic survey notes, India has a robust intellectual property ecosystem. As per the WIPO Report 2022, India ranks sixth among the top 10 patent filing offices globally. The Survey mentions that since the National IPR Policy 2016, amendments to rules governing patents, designs, copyrights, and trademarks have streamlined application processes and reduced compliance. The Patent (Amendment) Rules 2024 has further simplified patent processing, filing and maintenance, the survey adds.

The Economic Survey optimistically emphasizes that synchronised efforts of all tiers of governments, the private sector, the skilling eco-system, academia and R&D institutions, as well, and financial stakeholders to enable India realise its ambition as a manufacturing powerhouse.

***

NB/SB/GDH