Manufacturing Sector Poised to Drive 18% of GDP Growth

The manufacturing sector is expected to experience slight growth, making up 18% of the GDP, while the share of agriculture is forecasted to drop significantly to 10%. These modifications illustrate India's shift from an agrarian economy to one focused on services and manufacturing.

This shift is also emphasized by trends in employment. It is projected that by 2047, over half of the workforce will be working in the services sector, compared to less than a quarter in 2000.

On the other hand, it is expected that the percentage of employment in agriculture will decrease significantly from 59.4 per cent to 22 per cent. Manufacturing jobs are expected to increase from 10.9% in 2023 to 15% in 2047, offering potential for companies in industrial expansion and tech-based manufacturing.

Small and medium-sized enterprises (MSMEs) have a great opportunity for growth by becoming formalized, adopting technology, and enhancing productivity, as they currently contribute 30% to GDP and 45% to exports.

The government's focus on formalizing the industry opens up possibilities in financial services, skill development, and technology integration.

FDI is expected to have a significant impact on India's economic evolution. The government's emphasis on gross fixed capital investment, along with ongoing business-friendly policies and incentives, is anticipated to lure foreign investors.

This means that businesses can increase their opportunities in high-tech manufacturing, exports, and services. India is expected to see a substantial increase in its workforce, as employment is anticipated to reach 76.9 crore by 2047, fueled by a working-age population of 118.4 crore.