According to a report by the Boston Consultancy Group, India could become the world’s fifth largest manufacturing nation by 2022.
As the Economic Times reports, India is now the world’s ninth largest manufacturer, but the report says that if it is able to increase manufacturing to 25 per cent of GDP it will be able to make the jump to fifth position.
It says that growth in the Indian manufacturing sector has remained flat over the last 20 years because of poor productivity.
It also says that, given India’s huge working population and low labour costs, the key to improving the sector’s position is ‘people productivity’. In addition, it says that more talented people need to be attracted to the sector.
At present, manufacturing does not have the glamour associated with other sectors. University graduates are currently more likely to be attracted to other sectors such as IT.
The report concluded that, in order to reach the position of the 5th largest manufacturing nation, employers need to be able to offer graduates a more attractive work culture and better career expectations.