India's manufacturing sector is experiencing a remarkable turnaround, outpacing the services sector in job growth, according to a study by Teamlease Degree Apprenticeship. The introduction of production-linked incentive schemes and government initiatives like Make in India have contributed to a 200% expansion in manufacturing employment over the past two years. The sector is projected to create 6.5 million jobs in 2024, with sectors such as pharma, defense, electronics, and renewable energy offering promising opportunities. With continued investment and proactive measures, India has the potential to become a thriving hub for high-quality manufactured goods, bolstering economic growth and employment prospects.
Manufacturing in India is experiencing a remarkable turnaround, and the government's focus on boosting factory jobs is expected to ignite further growth. According to a recent study by Teamlease Degree Apprenticeship, the rate of job growth in manufacturing has surpassed that of the services sector, which had been the primary employment generator since the early 2000s. The manufacturing industry has witnessed a significant expansion of 200% over the past two years, while the services sector has experienced a decline of 35%.
This surge in manufacturing employment can be attributed to the introduction of production-linked incentive (PLI) schemes and the expansion plans of companies. The government's initiatives, such as Make in India, have played a crucial role in positioning India as a manufacturing hub. As a result, the manufacturing sector is projected to create 6.5 million jobs in 2024, with a growth rate of 18.4%.
Anish Shah, the group CEO and MD of Mahindra Group, emphasized the need for even greater job creation in manufacturing, stating that it should be "much larger." He expressed optimism about India's potential to become a global manufacturing hub and emphasized the importance of manufacturing in driving economic growth.
The government's Viksit Bharat goals align with the vision of boosting manufacturing and job creation. Harsh Goenka, the chairman of RPG Enterprises, highlighted the need for expansion in capacity and diversification into new segments and products to further enhance manufacturing employment. Sectors such as pharma, defense, electronics, and renewable energy offer promising opportunities for job growth.
The construction sector, driven by infrastructure development, is expected to contribute significantly to the manufacturing job market. Additionally, the electronics sector is poised to be a major contributor. However, the services sector has experienced a slowdown, particularly in the IT industry, while sectors like BFSI, travel, tourism, hospitality, and aviation have been performing well.
To sustain the momentum in manufacturing job creation, Sumit Kumar, the chief strategy officer of TeamLease Degree Apprenticeship, highlighted the importance of government initiatives, domestic market expansion, and employment-linked incentive schemes. These factors, combined with skilling programs, are expected to generate millions of additional manufacturing jobs in the coming years.
Overall, there is a positive outlook for the manufacturing sector in India, driven by infrastructure development, government initiatives, and global supply chain shifts. With a proactive approach and continued investment, India is well-positioned to become a thriving hub for high-quality manufactured goods, creating a multitude of employment opportunities across various sectors.
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