Size matters: Decoding Indian manufacturing’s problem of scale
4 months ago

Size matters: Decoding Indian manufacturing’s problem of scale

Live Mint  

New Delhi: The production-linked incentive scheme—one of the ways in which this government was hoping to increase manufacturing in India—is going through a slowdown, with planned expansions to the programme being put on hold. Size does matter As of 2019, the last date for which data was available, Bangladesh’s ALTF sector employed 2.45 million people, with 66% of those working in firms with 300 or more employees. This was especially the case after a Supreme Court ruling in 2001 liberalised rules around contract workers, enabling companies to get around the supposedly ‘rigid’ labour laws, which kick in at the 100-employee mark. As per data from the ASI for only single manufacturing plants, and excluding ‘multi-plants’, the share of employment in manufacturing as a whole has grown since 2011-12, but by just a few percentage points. As an aside, it’s worth pointing out that even the ASI data, adjusted for the issue of multi-plant data, likely overstates the share of workers who work for large firms.

Data Labour Bangladesh Manufacturing Indian Workers Share Units Sector Sectors Firms Size Contract Workers Larger Global Exports Especially Those Economic Uncertainty Firm Size Indian Plants  sectors  size  share  manufacturings  problem  scale  sector  workers  decoding  units  manufacturing  larger  data  labour  indian  firms  matters

History of this topic

Why India's apparel sector may be hit hardest by Trump's reciprocal tariffs
2 days, 1 hour ago

Why India's apparel sector may be hit hardest by Trump's reciprocal tariffs

India Today  

The potential impact of Donald Trump’s new reciprocal tariffs — set to be unveiled on April 2 — on India’s auto and pharma sectors has been thoroughly discussed. Of around USD 36 billion worth of textile exports from India in 2023-24, the US accounts for nearly 28 per cent or USD 10 billion. From 21 per cent of overall textile …

Tariff-proofing India’s exports
1 week, 6 days ago

Tariff-proofing India’s exports

Hindustan Times  

The tariff turmoil from the United States is emerging as the biggest ‘known unknown’ for the global economy in 2025. Indian economy For some time now, the relative stability of the World Trade Organization -refereed trade regime has cultivated a wide-spread complacency with global trade ballooning nearly five times since the creation of WTO. The long entrenchment in stable global …

Madan Sabnavis: Can India’s economy count on manufacturing as an engine of growth?
2 weeks ago

Madan Sabnavis: Can India’s economy count on manufacturing as an engine of growth?

Live Mint  

The decade ending 2023-24 shows an interesting trend of a distinct decline in the contribution of manufacturing to India’s overall story of economic growth. However, in the case of India, we have more or less skipped the intermediate phase of rapid industrialization, with services having already come to the forefront as the economy’s dominant sector. The accompanying graphic offers a …

Indian industry needs innovation, not mindless toil
1 month, 1 week ago

Indian industry needs innovation, not mindless toil

The Hindu  

A few months ago, this writer and his colleagues interviewed migrant industrial workers in Ludhiana, Punjab, for a research project. They may not be aware that most of India’s workers are informal and must work extremely long hours, sweating to earn a living. In the developed world, the mode of surplus extraction underwent a transformation long ago, from making workers …

India's innerwear exports face a Chinese problem
1 month, 2 weeks ago

India's innerwear exports face a Chinese problem

Live Mint  

New Delhi: India’s dependence on Chinese raw materials for garment manufacturing, particularly in the innerwear segment, is hurting the domestic industry. As per the data, the women’s and girls’ innerwear category faced similar hurdles, with exports of slips and nightdresses decreasing from $627.74 million in FY22 to $499.86 million in FY24, reflecting a fall of 20.37%. The underwear index As …

Industrial output growth skids to four-month low of 3.2%
1 month, 3 weeks ago

Industrial output growth skids to four-month low of 3.2%

The Hindu  

India’s industrial output growth dropped to a four-month low of 3.2% in December, with manufacturing and mining sectors rising just 3% and 2.6%, respectively, and consumer non-durables’ production slipping 7.6% from a year ago. The National Statistics Office also downgraded the industrial production growth assessment for November 2024 to 5% from 5.2% estimated earlier. Consumer non-durables remained a worry, with …

Economic survey calls for a focus on textile exports
2 months ago

Economic survey calls for a focus on textile exports

Hindustan Times  

The 2024-25 Economic Survey has recommended throwing the kitchen sink at the textile export challenge to exploit the economic potential of this sector. The Survey’s discussion on untapped potential of the textile sector builds on an analysis of India’s underperformance in labour intensive sectors including textiles in the same document four years ago. First is “a lack of localisation and …

Textiles sector should address issues related to cost competitiveness: Economic Survey
2 months ago

Textiles sector should address issues related to cost competitiveness: Economic Survey

The Hindu  

Lack of localisation and complexity of the Indian textile value chain result in higher costs for Indian exporters in the textile sector, relative to global competitors. In contrast, vertically integrated ‘fibre-to-fashion’ firms in competitor nations such as China and Vietnam export low-cost products, maintain consistent quality, and are “nimble enough to adjust to the fast-changing nature of the industry,” said …

Apparel and textile exports register growth despite challenges
2 months, 2 weeks ago

Apparel and textile exports register growth despite challenges

The Hindu  

Apparel exports registered 12.9 % growth in dollar terms in December 2024 compared with the previous year and cumulative exports for April - December of 2024 registered 11.6 % growth as against the same period the previous year. Sudhir Sekhri, chairman of the AEPC said in a statement, “This is the appropriate time when India needs to capitalise this opportunity …

Textiles exports a silver lining as India’s trade deficit widens
3 months ago

Textiles exports a silver lining as India’s trade deficit widens

Live Mint  

New Delhi: India’s textiles sector has emerged as a beacon of resilience and growth, recording an impressive 36.65% increase over the last four years, although industry stakeholders aren't much enthused by the resurgence. Rising from $17.05 billion in FY21 to $23.30 billion in the last eight months of the current fiscal year, this growth underscores the sector’s ability to adapt …

Indian manufacturing must adapt to constant flux in a dynamic world
3 months, 2 weeks ago

Indian manufacturing must adapt to constant flux in a dynamic world

Live Mint  

The global economic landscape is becoming increasingly interlinked and dynamic. Despite multiple shifts, 2023 saw global merchandise exports worth over $24 trillion, an increase of 6% over 2019, demonstrating resilience in the face of disruptions. Focused reforms since then, including the production-linked incentive schemes and ‘Make in India’ initiative, combined with infrastructure development programmes, trade agreements and stronger participation in …

To challenge China, India needs to get out of the way of its factory owners
4 months, 1 week ago

To challenge China, India needs to get out of the way of its factory owners

Live Mint  

Boosting manufacturing is critical to India becoming an economic powerhouse. In India, manufacturing’s contribution to its gross domestic product has fallen from around 17% two decades ago to 13% in 2023, according to World Bank data. Manufacturing firms in India said they are wary of operating large factories because of the power of organized labor. “No manufacturer wants to set …

Competing in the Global Apparel Arena: How India Can Rise Above the Textile Tide
5 months ago

Competing in the Global Apparel Arena: How India Can Rise Above the Textile Tide

Hindustan Times  

India's textile and apparel sector holds significant potential to create more and better employment, especially from the labour-intensive apparel segment. However, the sector faces important challenges in adapting to global market demands. It requires both the government and private sector to play their part. The government could help by rationalising domestic taxation and reducing import tariffs along the entire supply …

IMF Sees India's Economic Growth and Outlook as Stable
5 months, 1 week ago

IMF Sees India's Economic Growth and Outlook as Stable

New Indian Express  

India remains the world's fastest-growing economy, with inflation expected to decline to 4.4% in FY24-25. IMF Director Krishna Srinivasan highlights the country's strong macroeconomic fundamentals, including a large and growing population, favourable harvests, and a stable fiscal situation. Srinivasan suggests that the country focus on creating jobs, removing trade restrictions, and investing in infrastructure and education to strengthen its economy …

Indian Apparel Exports Soar 17.3% in September, Boosting Global Supply Chain
5 months, 2 weeks ago

Indian Apparel Exports Soar 17.3% in September, Boosting Global Supply Chain

The Hindu  

Indian apparel exports saw a significant surge in September, with a 17.3% increase compared to the same period last year. This growth is expected to continue in the coming months, with 15%-20% higher exports projected for 2024-2025. This surge is attributed to the increasing popularity of Indian products and the growing focus on sourcing from India by international buyers.

Apparel exports grew 12% in August to more than $1.2 bn
6 months, 2 weeks ago

Apparel exports grew 12% in August to more than $1.2 bn

The Hindu  

Apparel exports registered 11.9% growth in August to $1,268.2 million compared with $1,133.5 million last August. In rupee terms, exports were 13.4% higher last month compared with last August and 8.7% more in April-August FY25 compared with the corresponding period in FY24. Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council, said in a press statement that exports to Japan, Korea, …

Terms of Trade | India needs to move beyond the formalisation and welfare narratives
8 months, 4 weeks ago

Terms of Trade | India needs to move beyond the formalisation and welfare narratives

Hindustan Times  

Since demonetisation in November 2016, the current government has been consciously following a policy of pushing formalisation in the Indian economy. In terms of share in overall GVA excluding agriculture and construction, the share of informal sector enterprises has gone down from 12% to 8.2% between 2015-16 and 2022-23. While there are no clear-cut estimates for the sector-wise break-up of …

India’s fraying garment industry needs a stitch in time under Modi 3.0
9 months ago

India’s fraying garment industry needs a stitch in time under Modi 3.0

Hindustan Times  

In 2011, McKinsey, the global consulting firm, conducted a survey of chief purchasing officers at top western apparel makers in order to gauge the supply chain shifts afoot in the industry. “Entry into synthetics would make factories run full year and increase wages manifold.” Fast fashion is a low-margin industry with a complex production process, and one indicator could determine …

Textile industry discusses measures needed to achieve higher growth rate
10 months, 2 weeks ago

Textile industry discusses measures needed to achieve higher growth rate

The Hindu  

The National Committee of Textile and Clothing industry, comprising major textile associations and export promotion councils, deliberated on Saturday on measures to be taken to revive the Indian textile and clothing sector. Rakesh Mehra, chairman of the Confederation of Indian Textile Industry, said the average capacity utilisation in textile units across the value chain is 65 %. On the indications …

India's Index of Industrial Production growth slows to 4.9% as mining sector sees decline
10 months, 3 weeks ago

India's Index of Industrial Production growth slows to 4.9% as mining sector sees decline

Deccan Chronicle  

New Delhi:With the poor performance, mostly in the mining sector, India’s industrial output slowed marginally to 4.9 per cent in March this year as compared to the previous month. The factory output measured in terms of the index of industrial production or IIP was 5.6 per cent in February 2024, while it saw a growth of 1.9 per cent in …

There is no discord over India’s growth and employment trends
1 year, 1 month ago

There is no discord over India’s growth and employment trends

Live Mint  

Coming to manufacturing, between 1998-99 and 2003-04, employment growth was 7.3 million. There is a clear slowdown in manufacturing employment growth between 2008-09 and 2013-14. So, it stands to reason that the decline in agricultural employment, which was of the order of 17.8 million, was absorbed by services and other sectors, given that the economy as a whole added 13.1 …

A tale of India’s two big export industries: And a lesson on incentives
1 year, 2 months ago

A tale of India’s two big export industries: And a lesson on incentives

Live Mint  

India boasts of vast production capacity in one industry. Almost all its raw material is imported, resulting in the highest foreign value-added content in Indian exports among all industries, and low employment generation via backward linkages. Entrepreneurs in both sectors realized that by entering these, they can avoid dependence on India’s poor physical infrastructure, stringent labour laws and multiple licensing …

Book Excerpt | India's growth story diverges from the pan-Asian narrative
1 year, 3 months ago

Book Excerpt | India's growth story diverges from the pan-Asian narrative

Deccan Chronicle  

Asian export-led growth accelerated the typical shift in labour between sectors, but the transformation was similar to the one that rich countries had already gone through. Thus, the manufacturing share of employment in an economy as a function of its income per person first increases as workers move from agriculture to manufacturing, then decreases as they move from manufacturing to …

Bharat’s Model of Economic Growth Cannot Be Built on Western Models - News18
1 year, 4 months ago

Bharat’s Model of Economic Growth Cannot Be Built on Western Models - News18

News 18  

Policymaking in the agriculture space is rife with several myths, misconceptions, and assumptions. A NITI Aayog paper from 2022 highlights four structural paths that farmers could find themselves on: the Farmer Developing Path, the Lewis Path, the Lewis Trap, and the Farmer Excluding Path. The Indian agricultural sector employs 44 per cent of the labour force in the country while …

Watch out for global headwinds
1 year, 5 months ago

Watch out for global headwinds

Hindustan Times  

India’s trade deficit, goods and services combined, in the first half of the current fiscal year has almost halved to $39.9 billion compared to $75.3 billion in the same period in 2022-23. Even in goods trade — India almost always has a trade surplus in services trade — the deficit has fallen from $115.6 billion to $140.8 billion. With the …

India’s global exports in labour-intensive sectors declined in last 5 years: FIE
1 year, 6 months ago

India’s global exports in labour-intensive sectors declined in last 5 years: FIE

Live Mint  

With India experiencing a decline in global market share across segments during the last five years, the labour-intensive export sectors such as apparels, marine products, plastics, and gems and jewellery are showing a "troubling pattern", news agency PTI quoted FIEO report as saying. "An analysis of sector-wise export performance for the last five years reveal the troubling pattern that India …

Indian textile exports show signs of revival
1 year, 6 months ago

Indian textile exports show signs of revival

The Hindu  

Textile and apparel exports turned positive last month after more than six months of degrowth. While textile exports increased 13.98%, apparel exports declined 8.15%. Cumulative exports of textiles and apparel for April - August, however, were 10.51% lower compared with the same period last year, shows data shared by the Confederation of Indian Textile Industry. Siddhartha Rajagopal, executive director of …

DC Edit | Inflation, exports still a concern
1 year, 7 months ago

DC Edit | Inflation, exports still a concern

Deccan Chronicle  

India’s economy performed well by growing at the rate of 7.8 per cent in the first quarter of financial year 2023-24, thanks to a significant increase in private consumption, government capital expenditure, financials and services. Though the current growth rate pales in comparison with 13.1 per cent expansion in the economy witnessed in the first quarter of FY 2022-23, it …

India's GDP growth exceeds expectations, but key to 'Amrit Kaal' lies in manufacturing
1 year, 9 months ago

India's GDP growth exceeds expectations, but key to 'Amrit Kaal' lies in manufacturing

Firstpost  

The coming 24-25 years will be crucial to India in determining its stakes as a global political and economic power. The fifth-largest economy now needs to gear up to its highest potential, with the manufacturing sector being given a fair chance to show its charisma Outperforming expectations, India’s GDP grew at the rate of 6.1 per cent in the last …

At the root of India’s manufacturing challenge
1 year, 10 months ago

At the root of India’s manufacturing challenge

The Hindu  

The issue of manufacturing or services as the desirable path for India’s economy makes the rounds in public fora periodically. In the early part of this century, when India’s software exports were booming, it had been asked why India’s services sector should not leapfrog over manufacturing to propel the economy forward. Unimpressive record After the economic reforms of 1991, the …

Indian Exports Decline 8.8 Per Cent To $33.88 Billion In February
2 years ago

Indian Exports Decline 8.8 Per Cent To $33.88 Billion In February

ABP News  

India's exports declined in February for the third consecutive month by 8.8 per cent to $33.88 billion against $37.15 billion in the same month last year, according to the data released by the commerce ministry on Wednesday. Imports also declined by 8.21 per cent to $51.31 billion as against $55.9 billion recorded in the corresponding month last year. During April-February …

India's GDP Growth: Economists Must Not Go by Face Value & Assess Data Robustly
2 years, 1 month ago

India's GDP Growth: Economists Must Not Go by Face Value & Assess Data Robustly

The Quint  

As argued before, while reviewing the macro-elements and components of growth in any statistical interpretation exercise, it’s difficult to get the full picture one needs. For example, keeping aside the base effect, the fact that private consumption demand is still woefully low, indicates how much of the low-middle income and middle-income class in India is ‘consuming less’ and their demand …

Turning tide: On India’s goods exports
2 years, 3 months ago

Turning tide: On India’s goods exports

The Hindu  

India’s goods exports rebounded from a nearly 17% dip in October to a mild 0.6% uptick in November. Their share in exports growth has been shrinking since June, with the contraction accelerating for many sectors from September to November — engineering goods that drove much of India’s record $422 billion goods exports in 2021-22, contracted 11.3% while textiles fell a …

Indian manufacturing sector and the great transformation under Narendra Modi
2 years, 3 months ago

Indian manufacturing sector and the great transformation under Narendra Modi

Firstpost  

With the vision of transforming India into a manufacturing hub, our government under the leadership of Prime Minister Narendra Modi took concrete steps towards improving various business parameters In 2014, when Prime Minister Narendra Modi took the reins of our nation, India had been tagged as one of the so-called “Fragile Five” nations alongside Indonesia, Brazil, Turkey, and South Africa, …

Indian exports grew by 19.7% in April-August over same period last year
2 years, 6 months ago

Indian exports grew by 19.7% in April-August over same period last year

Op India  

After India banned the export of wheat and broken rice, and in light of the ongoing Russia-Ukraine war that has impacted global trade, there is a perception that there is a decline in exports from India which will have a negative effect on the Indian economy. In spite of a prolonged Russia-Ukraine conflict, the disruptions in the supply chain, high …

India has managed inflation better than developed countries amid global headwinds: Goyal
2 years, 9 months ago

India has managed inflation better than developed countries amid global headwinds: Goyal

Live Mint  

India has managed to maintain its inflation at a reasonable level compared to developed countries at a time when global shortage of certain commodities has push up the world inflation, said commerce and industry minister Piyush Goyal at an industry event in Tirupur in Tamil Nadu. "For most of the items, we have been able to maintain the prices much …

Get these wrinkles out of the South Asian textile story
3 years ago

Get these wrinkles out of the South Asian textile story

The Hindu  

South Asia became a major player in the global textiles and clothing market with the onset of the third wave of global production. Supportive industrial policy was an instrumental factor in the 1990s, with zero duty on raw material and capital machinery, as access to global markets led to the industry’s boom. India’s production centres are operational at near full …

Explained: Why India's economy needs a manufacturing push
3 years, 7 months ago

Explained: Why India's economy needs a manufacturing push

India Today  

India’s economy needs a strong manufacturing push as the nation’s dominant services sector struggles to return to normalcy after two deadly waves of the Covid-19 pandemic. Read | Covid-19: India’s services activity in May contracts for 1st time in 8 months SLOW PROGRESS IN MANUFACTURING Even before the pandemic brought the economy to a standstill in 2020, growth in India’s …

India Should Resist Misleading Allure of Domestic Market; Boost Export, Says Paper Co-authored by Ex-CEA
4 years, 5 months ago

India Should Resist Misleading Allure of Domestic Market; Boost Export, Says Paper Co-authored by Ex-CEA

News 18  

India should resist the misleading allure of the domestic market and should zealously boost exports, according to a research paper co-authored by former chief economic advisor Arvind Subramanian. The paper, jointly authored by Subramanian and Pennsylvania State University professor Shoumitro Chatterjee, said India is turning inward, domestic demand is assuming primacy over export orientation and trade restrictions are increasing, reversing …

Piyush Goyal Says Exports Will Increase if Products are 'Good', Subsidies Not Only Solution
4 years, 5 months ago

Piyush Goyal Says Exports Will Increase if Products are 'Good', Subsidies Not Only Solution

News 18  

Commerce Minister Piyush Goyalhas said Indian exports will automatically increase if the products are "good and competitively priced" and that entrepreneurs should not think that subsidies are the "only solution". Underscoring the need for "bolder ideas" for signing Free Trade Agreements, the minister said India could leverage the lower labour cost to promote its products. India can surely be part …

The missing middle aggravates India’s jobs conundrum
4 years, 6 months ago

The missing middle aggravates India’s jobs conundrum

Live Mint  

Any country sees genuine progress when it creates jobs. McKinsey Global Institute in a recent report titled India’s turning point—An economic agenda to spur growth and jobs points out that India has around 600 large firms which earn a revenue of more than $500 million per year. There aren’t enough large firms in India because of India’s missing middle of …

Manufacturing, Construction and Hospitality Sectors Leading India to its Worst Recession Ever?
4 years, 7 months ago

Manufacturing, Construction and Hospitality Sectors Leading India to its Worst Recession Ever?

News 18  

According to data released by National Statistical Office on Monday, all key sectors except agriculture witnessed contractions. The Gross Domestic Product data for the first quarter of the ongoing financial year said that the country witnessed its worst contraction ever. So far, the UK economy had seen the biggest slump in June quarter GDP among the top 20 economies of …

Misses in manufacturing
5 years, 1 month ago

Misses in manufacturing

The Hindu  

ONE of the highlights of the latest Economic Survey is its optimism that India will be able to create 40 million well-paid jobs in manufacturing by 2025. According to the recent Periodic Labour Force Survey, manufacturing employment in India in 2017-18 was only 60.2 million, which was 12.8 per cent of the country’s total workforce in that year. According to …

Exports won't be key driver of India's growth: Expenditure Secretary Somanathan
5 years, 1 month ago

Exports won't be key driver of India's growth: Expenditure Secretary Somanathan

The Hindu  

Somanathan, Secretary, Union Ministry of Finance said that exports would not be the main driver of India's growth in the next three years which will have to be led by domestic investment and consumption. organised by the United Way Chennai, Mr. Somanathan cited the difficult external trade environment and the tariff war between U.S. and China as the key reasons. …

Well-deserved Festschrift
5 years, 5 months ago

Well-deserved Festschrift

The Hindu  

“D eepak Nayyar —a great teacher, an eminent academic, a distinguished policymaker and a leading thinker of our times,” says the opening sentence of this volume authored by his friends and admirers from different parts of the globe. On the early stages, it remarks: “While the global polity had an alternative to the NATO powers, the global economy too had …

India’s economy slows, stalling once thriving manufacturing
5 years, 6 months ago

India’s economy slows, stalling once thriving manufacturing

Associated Press  

NEW DELHI — Anuj Kapoor took over his father’s booming auto parts business in 2012, hoping to elevate the company from selling to suppliers to selling directly to carmakers. “How do we file tax returns when sellers don’t give us any bills?” The sudden demonetization was the “biggest policy mistake of independent India,” says Jayati Ghosh, an economist at Jawaharlal …

Economic slowdown: Manufacturing growth sluggish at 7%, share in GDP stagnant at 16%; urgent need of more than just a policy overhaul
5 years, 6 months ago

Economic slowdown: Manufacturing growth sluggish at 7%, share in GDP stagnant at 16%; urgent need of more than just a policy overhaul

Firstpost  

With the RBI softening its policy rates for the fourth consecutive time in 2019, and Banks expected to pass on these rate reductions, there is hope for uptick in credit flow to key manufacturing industrie Indian economy has been the fastest growing economy, as per major multilateral institutions. Though manufacturing forms an integral part of the industrial sector, its sectoral …

India’s export basket skews towards services, pulls down trade deficit
5 years, 7 months ago

India’s export basket skews towards services, pulls down trade deficit

Live Mint  

India’s export basket is undergoing a silent transformation, a trend that explains why the services sector, which accounts for about half of India’s gross domestic product, is doing better than other segments of the economy. Latest official trade data released on Wednesday showed how export of services is growing at a robust pace, while that of merchandise has contracted marginally …

Bangladesh garment exports, a challenge
5 years, 10 months ago

Bangladesh garment exports, a challenge

Deccan Chronicle  

Coimbatore: The Indian Texpreneurs Federation has appealed to textile brands and retailers to focus on local sourcing to support domestic manufacturers, as this would create enormous job opportunities in the Indian sector. While the Indian textile industry is already facing sluggish demand in domestic markets, it is also witnessing stagnant exports, and the prospective job losses would be approximately 1.5 …

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