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Past Issue • Jan-Mar 2012

Manufacturing in India: Why it Must Thrive

Sunil Kant Munjal, Joint Managing Director, Hero MotoCorp, argues the need for the long-awaited government’s new National Manufacturing Policy (NMP) and writes about the issues related to implementing this plan.

Given the easy availability of most raw materials and the relatively inexpensive workforce, the ingredients should have been in place for a sound manufacturing ecosystem in India. Yet for long, manufacturing has been a poor cousin to the service sector, which accounts for 57% of national output. In other Asian countries at similar stages of development, manufacturing has contributed much more significantly towards national GDP, compared to India’s 16%.

Finally, the government seems to have woken up to this anomaly and the Union Cabinet recently cleared a policy that includes setting up National Manufacturing and Investment Zones (NMIZ).


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