1. Manufacturing Sector
in
Indian Economy
Presented by EMBA Batch – II
Fabulous- 5

2. TODAY
Manufacturing Growth • One of the fastest growing world economies
• Reasonably proactive
Predictions
• Opening up of sectors for investment
Contribution to GDP • Promising consumer markets
Demand drivers • Significant investment in infrastructure
creation for industry
Automobile Industry
FMCG
Infrastructure
Sustaining
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3. 11.3% 12%
9.2% 9.1% MANUFACTURING
6.0%
7.4%
GROWTH
2.9%
PLAN
2006
2001-
2002-
2003-
2004-
2005-
Q-1,
XI-
02
03
04
05
06
Consistently growing GDP (%)
• National Manufacturing Competitiveness
Council
• Progressive reduction in taxes and
tariffs, - Manufacturing Hub
• Exports from India likely to grow to USD
300 billion in 2015 from USD 48 billion in
2003
Among the top 5 economies
Source : Planning Commission

4. Year 2007 vs. Year 2020 predictions
US
Japan
Germany
UK
France
Italy
Canada
China
Brazil
Mexico
India
Russia
0 5,000 10,000 15,000 20,000 25,000
Source : KPMG GDP (US$bn)
India emerging as one of the top global economies
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5. CONTRIBUTION OF MANUFACTURING IN GDP
15.18
15.15
15.00
15.07
20.00
14.75
Percentage of GDP
15.00
6.73
6.51
6.22
6.09
10.00
5.87
2.34
2.37
2.20
2.30
2.29
2.23
2.22
2.20
2.15
2.05
5.00
0.00
2001-02 2002-03 2003-04 2004-05 2005-06
Manufacturing Construction
Eelectricity, Gas & Water Supply Mining & Quarrying
• Average contribution of Industry in GDP (2001-06) ~ 26%
• Average contribution of Manufacturing in Industry (2001-06) ~ 58%
Source : CSO
5

6. Indian manufacturing demand drivers
YOUNG DEMOGRAPHY Automobile
FMCG
GROWING ECONOMY
Infrastructure
Others
URBANIZATION
6

7. Indian Automotive Industry
Vehicle sales in India in 2005 - 06 ( in mil)
• Key contributor to the Economy
0.36
• Grown at a CAGR of 14% pa(2001-2006) 7.05
0.35
• Sales of 9 million vehicles in 2005-06 1.14
• 2nd largest two wheeler market
• 4th largest commercial vehicle market 0 2 4 6 8
• 11th largest passenger car ,expected
to be the 7th largest market by 2016 Cars CVs Two wheelers Three Wheelers
Source : SIAM

8. FMCG & Food Processing
• Worlds largest producer of tea, sugarcane and milk
• FDI of 100% permitted
(except in special cases, capital goods)
• All profits are free of corporate tax and minimum alternate tax
The company plans to invest around USD 500 Mn in India
Largest beverage player. Invested more than USD 1 bn since
its entry into India

9. The Indian infrastructure industry
Indian Engineering and Construction industry recorded a CAGR of 8.4%
over the last two decades
‘04-’07
‘03-’04
•Urban Infrastructure Global Engineering & Construction spending
growth
•Roads
Prospects in the longer term remain Positive. Industry projected to further grow by 7-8% annually -
faster than the country’s projected GDP growth
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10. Sustaining Manufacturing Growth
 Product Engineering
 Role of IPR
Now the time to develop a robust, thoughtful and
plan to build, maintain and fund a world class
21st Century
What We Need to do ?

11. Thank you!
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