The Manufacturing Sector: Growth Story of India

INDIA’S EXPORTS SURGE IN THE POST-PLI ERA

IMPACT OF PLI ON CAPACITY ADDITION AND MANUFACTURING OUTLOOK 7 .

800K

714,042

613,052

Given a massive public outlay made over the years to spruce up manufacturing capabilities in the country, India is currently witnessing a surge in capacity additions in electricity generation, a crucial input for commercial establishments, including manufacturing. Within that, the renewable power sector is gaining greater momentum as its share in total electricity generation has been consistently rising in the last nine years. Renewable power generation contributes nearly 12% of total power generation in the country as of FY22, significantly rising from merely a 5% share nine years ago. Renewable energy is critical for global manufacturers looking to set up establishments in India and also lower carbon emissions costs of maintenance and fuel.

600K

514,079

474,709

465,581

450,958

394,436

422,004

384,357

400K

330,078

313,361

303,526

291,808

275,852

INDIA: RAMPING-UP CAPACITIES IN RENEWABLE POWER

11%

200K

1,600,000

1,400,000

8%

PLI SCHEME ANNOUNCED

1,200,000

0K

1,000,000

5%

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2016-17

800,000

Import

Export

*Values in USD Mil

600,000

2%

400,000

SELECT SECTORS ENJOY SURGE IN EXPORTS, ATTRIBUTABLE TO PLI

200,000

Growth of exports in 2022 over 2019 level across broad segments

2017-18

2016-17

2015-16

2018-19

2013-14

2014-15

2021-22

2020-21

2019-20

100%

Electricity Generation (GWh)

Renewable % share

80%

Source: National Power Portal (GOI)

60%

The success of the Production Linked Incentive (PLI) scheme is already visible through increased exports in select sectors such as Electronics, Chemicals and Agro products. These sectors have experienced heightened trade activity as exports have surged during the latest annual period 2022 when compared to the corresponding period in the pre-covid year of 2019. The Indian government is contemplating introducing the PLI scheme for more sectors to further augment exports across a spectrum of manufacturing segments.

40%

20%

0%

FMCG

Mining

Others

Chemicals

Electronics

Grand Total

Agro & Fisheries

Heavy Machinery

Healthcare, Pharma

Source: Ministry of Commerce & Industries

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Cushman & Wakefield

The Manufacturing Sector Growth Story of India

25