Indian industry to churn $3-trn biz potential by 2035
Manufacturing is expected to emerge as the growth leader taking two-third share of industrials and more than 20 per cent share of the GDP by 2035. Higher domestic consumption with increasing per capita income and a target of $1 trillion merchandise exports are expected to drive this growth, according to the report by Omniscience Capital. The manufacturing sector is pivotal to India's economic growth, significantly contributing to the nation's GDP. Currently, it stands as one of India's key growth sectors, catering to both domestic and international markets.
Government initiatives such as the Production-Linked Incentive (PLI) scheme, 'Make in India' campaign, liberalised Foreign Direct Investment (FDI) policy, public-private partnership (PPP) models for various public undertakings, and infrastructure development are fuelling this growth.
To achieve India's ambitious $1 trillion merchandise export target by 2030, the merchandise exports should increase from the current $450 billion to $1 trillion, requiring a year-on-year growth rate of 12 per cent, the report mentioned.
India's share in global merchandise exports has doubled from 0.9 per cent share in 2005 to 1.8 per cent in 2023. India's merchandise exports have grown at a 3-year CAGR of 18.8 per cent from FY21 to FY24 and a 5-year CAGR of 9.4 per cent from FY19 to FY24.
'India is poised to continue emerging as a preferred destination for manufacturing investments due to the availability of raw materials, low labour costs, a favourable corporate tax rate for manufacturing, and proactive government support through incentives,' said Ashwini Shami, EVP and Portfolio Manager at OmniScience Capital. The government is developing 11 industrial corridor projects under the National Industrial Corridor Development Programme (NICDP) across the country in four phases.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
H&H Aluminium opens ₹150-cr solar frame plant in Gujarat, Manufacturing News, ET Manufacturing
Advt H&H Aluminium on Friday launched its ₹150-crore solar panel frame manufacturing plant at Rajkot in Gujarat , which will generate jobs for around 300 facility has a production capacity of 24,000 metric tonnes per annum and can power and support up to 6 GW solar installations in India, the Gujarat-based company said in a Minister C R Patil inaugurated the plant on Friday, it added.H&H Aluminium has invested around ₹150 crore in the 28,000 square metre aluminium solar frame manufacturing facility, H&H Aluminium Director Uttam Patel said."This will be India's largest and most advanced solar panel aluminium frame plant at a single location and we were able to install in a record time of just about a year," Patel plant will generate employment opportunities for over 300 production at the plant commenced in June 2025, and commercial production is expected to start within a month. At full capacity, the plant will be able to support sales of ₹700-750 crore per annum, Patel also said that India imports 90-95 per cent of aluminium solar panel frames , and the plant will support the Make in India initiative and promote domestic manufacturing in the solar energy government has set an ambitious target to install 500 GW of renewable energy capacity by 2030, and around 280 GW is expected to come from solar power."This represents a huge opportunity for solar power and allied industries over the next 5-10 years," Vijay Kaneria, another director of the company, said.
Time of India
2 hours ago
- Time of India
Employment-linked incentive scheme for job creation; direct incentives for employees and employers from August
AI image The Indian government has approved the RS 99,446 crore Employment-Linked Incentive (ELI) scheme, aimed at generating over 2 crore formal jobs by offering direct financial support to new employees and hiring incentives to employers. The scheme, launching on August 1, 2025, is expected to transform India's formal job market. As part of the initiative, newly employed individuals earning up to Rs 1 lakh per month and registered with the Employees' Provident Fund Organisation (EPFO) will be eligible for a one-time incentive equal to a month's wage, capped at Rs 15,000. This amount will be paid in two instalments over a six-month period through direct benefit transfer, reported ET. A portion of the incentive will be held back for a fixed duration to encourage savings. The government estimates that this measure could lead to the creation of around 1.92 crore new formal jobs. ELI scheme for employers: Eligibility and payout details Employers will also receive financial support for creating new jobs. For each additional employee retained for at least six months, the employer will get up to Rs 3,000 per month for two years. In the manufacturing sector, the incentive will extend into the third and fourth years as well. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doutor: Manter a massa muscular após os 50 anos depende deste hábito noturno Revista do Homem Saiba Mais Undo However, the registration window for this benefit will remain open only from August 1, 2025, to July 31, 2027. To qualify, establishments with up to 50 employees must hire at least two new workers, while those with 50 or more employees must hire five. The amount of reimbursement per employee will depend on their salary: Rs 1,000 for wages up to Rs 10,000; Rs 2,000 for wages between Rs 10,000 and Rs 20,000; and Rs 3,000 for wages above Rs 20,000 and up to Rs 1 lakh. These payments will be transferred directly into PAN-linked employer accounts. According to EY India, a non-manufacturing employer hiring 100 additional employees could receive up to Rs 72 lakh over two years, while a manufacturing firm could earn as much as Rs 1.44 crore over four years. The ELI scheme is projected to encourage the creation of around 2.6 crore jobs through these employer incentives, reinforcing the government's broader agenda to formalise the workforce and strengthen job growth. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 hours ago
- Time of India
Tata Motors eyes ₹6,500 cr boost from PLI scheme as EV line‑up expands
Tata Motors plans to secure about ₹6,500 crore in incentives from the Government's production‑linked incentive (PLI) scheme for electric vehicles over the next three years, company executives have told The Financial Express . The country's largest maker of electric passenger and commercial vehicles expects roughly ₹4,000 crore to come from its passenger‑vehicle (PV) range and a further ₹2,500 crore from its commercial‑vehicle (CV) portfolio. Tata Motors has already received ₹385 crore in PLI benefits for FY25 – ₹250 crore for PVs and ₹135 crore for CVs – up from ₹142 crore a year earlier. A company spokesperson said the firm intends to 'avail the full benefits' available until FY28. Tata Motors PLI-certified PV models At present, three PLI‑certified PV models – the Tiago EV, Tigor EV and Punch EV – are earning incentives of roughly ₹40 crore a month. With the recent certification of a forty‑five‑kilowatt‑hour Nexon EV variant and forthcoming approvals for the Harrier EV, Curvv EV and Sierra EV, Tata Motors expects monthly inflows to climb, taking total PV incentives to around ₹700 crore by the end of FY26 and up to ₹2,000 crore annually thereafter. Tata Motors PLI-certified CV models In the CV division, led by executive director Girish Wagh, three electrified Ace mini‑truck variants and two each of the Starbus and Ultra electric buses already qualify for PLI support. The incentives lifted CV earnings before interest, tax, depreciation and amortisation margins by twenty basis points in FY25, while PV margins improved by seventy basis points. Despite its early lead, Tata Motors' share of India's passenger‑EV market fell to 35 per cent in May 2025 from 81 per cent in FY23. Shailesh Chandra, managing director of Tata Passenger Electric Mobility, told investors the firm aims to regain 'about 50 per cent share in the mid to long term' through its expanded electric portfolio and PLI‑driven cost advantages.
