Manufacturing Matters !!


Par 100 posts (V.I.P)
The Manufacturing sector has always been in the forefront of a country's growth engine. It has been very instrumental in the economic success stories of developed nations since three centuries and is continuing to be strategic for the developing nations now. Even India which has become the leader in IT services and outsourcing continues to better its manufacturing sector with an aim to increase the sector's contribution to its economy from 16% to 25% by 2025.
As the manufacturing output continues to increase by 2.7% for developed nations and 7.4% for developing nations year on year, Countries are increasingly focusing on this sector to maintain their competitive advantage. Manufacturing makes outsized contributions to trade, research and development and productivity as well. The sector is responsible for 70 percent of exports in major manufacturing economies both advanced and emerging. and upto 90 percent of business R&D spending.
The role of manufacturing keeps changing as an economy matures but it provides the base for an economy to mature at the first place is the bigger truth. Studies show that as economies become wealthier and reach the middle income status, the share of Manufacturing sector at this point is at its peak which is around 20 to 35 percent but beyond this point the consumption shifts to services followed by an increased hiring in the services sector. This has happened in the U.S, Germany and South Korea as well.
As economies mature, manufacturing becomes more important for other attributes, such as its ability to drive productivity growth, innovation and trade. It also plays a pivotal role from the perspective of societal challenges like energy consumption and reduction of emission of green house gases.
True pratik

Its very necessary that more and more entrepreneur should focus on manufacturing sector rather than service sector. Although its very difficult to start a manufacturing unit instantly but govt started many incentive schemes for SME's. Young entrepreneur should concentrate on this aspect of business also.........
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