India is rapidly becoming the country of choice for foreign investment in the manufacturing sector. Many brands such as mobile phones, luxury goods and automobiles have or plan to establish manufacturing bases in the country. By 2025, India’s manufacturing industry may reach US$1 trillion. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of 2.5 trillion U.S. dollars and a population of 1.32 billion. This will be a huge attraction for investors.
The Large Scale Business Profit Statics
The smart manufacturing market is divided into hardware, software and services. The software sector accounts for the largest share of nearly 50% in 2020 and is expected to continue to dominate over the forecast period. This market segment has matured because many solutions have been used for many years, including product lifecycle management, enterprise resource planning, and manufacturing execution systems. Furthermore, the emergence of AI-powered systems and analytics is expected to become a key factor driving the growth of the market segment. The hardware segment is expected to grow at a compound annual growth rate of more than 11.0% from 2021 to 2028. The hardware part includes IIoT-enabling equipment and systems, robots, 3D printers, and augmented and virtual reality equipment. Various types of traditional and smart sensors are an important part of the hardware field, and recent years have witnessed rapid growth and increased R&D activities. Increasing technological advancements have allowed manufacturing facilities to implement robots to perform tasks such as material handling, processing operations, and assembly and inspection.
The Growth Of Indian Large-Scale Manufacturing Sector
Manufacturing is expected to grow and create more jobs, mainly for the millennial generation to move forward as they graduate from skills Indian courses. As more and more foreign companies inject large amounts of foreign direct investment into this country, we can safely assume that India is on the right track to become the world's largest manufacturing center. 4,444 India's manufacturing output increased by 13% in June 2021 over the same period of the previous year, and is mainly made up of base metals (24%), coke and refined petroleum products (5.4%), and vehicles of motor, trailers and semi-trailers (61.5%). In addition, the production of mining (23.1%) and electricity (8.3%) increased.
Statistics released by researchers show that the total value added of Indian manufacturing in the first half of 2021 is approximately US$350.27 billion. The HIS Mar kit India Manufacturing Purchasing Managers Index (PMI) broke 55.5 points in March 2021, which is unprecedented in the history of the Indian manufacturing industry. This is a record number because it represents that manufacturing GVA now accounts for about 19% of India's total GVA. Research also shows that India's manufacturing capacity represents approximately 66% of its built-in capacity.
According to data from the Ministry of Statistics and Planning and Implementation, in February 2021, the Industrial Production Index of India (PII) measured an industrial production value of 129.4. In February 2021, the general index was 127.8. The increase in this index is supported by the increase in fertilizer production. The Reports stats that between April 2020 and February 2021, fertilizer production increased by 2.4%.
Industries To Choose For A Growing Manufacturing Business
The automotive industry has the largest share of revenue in 2020, around 23.0%, and is expected to have the highest compound annual growth rate from 2021 to 2028. The main factors driving the growth of this segment include the asset efficiency, cost savings, quality and sustainability that smart factory solutions provide. Furthermore, smart factory adoption and investment is expected to provide automakers with competitive advantages such as better profitability, faster time to market, product quality, and a stable workforce. Plant-wide automation, testing and simulation, and consumer connectivity are some of the main points of contact for smart manufacturing solutions in the automotive industry.
The aerospace and defense industry is expected to grow at a compound annual growth rate of more than 13% from 2021 to 2028. The industry is expected to invest heavily in smart manufacturing solutions, focusing on product prototyping and supply chain visibility and optimization. In addition, the use of additive manufacturing in product prototyping, simulation, and test environments, as well as advanced planning and scheduling, are expected to become the main focus of industry participants in the aerospace and defense sectors. The integration of data from various stakeholders in the supply chain is critical to the defense industry, and it is expected that substantial investment in this field in the next few years will drive the growth of this field.
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