Will India’s Industry Sector Unlock a $3 Trillion Opportunity by 2035?
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Synopsis
India's industrial sector is on the brink of a significant transformation, poised to surpass agriculture in GDP contribution and unlock a massive $3 trillion opportunity by 2035. Manufacturing is leading this charge, driven by domestic consumption and government support. Discover how these developments are shaping India's economic future.
Key Takeaways
- India's industrial sector is projected to contribute 30-32 percent to GDP by 2035.
- Manufacturing will lead the growth, accounting for over 20 percent of GDP.
- Aiming for $1 trillion in merchandise exports by 2030.
- Government initiatives are crucial for industry growth.
- 11 industrial corridor projects are underway, creating millions of jobs.
New Delhi, May 13 (NationPress) The industrial sector in India is projected to surpass agriculture in GDP contribution, aiming for a share of 30-32 percent by 2035, thereby creating a remarkable $3 trillion opportunity, as per a recent report released on Tuesday.
Manufacturing is anticipated to lead this growth, capturing two-thirds of the industrial sector and contributing over 20 percent to the GDP by 2035.
This growth is expected to be fueled by rising domestic consumption, alongside increasing per capita income and an ambitious target of $1 trillion in merchandise exports, as outlined by Omniscience Capital.
The manufacturing industry is crucial for India's economic advancement, playing a significant role in boosting the nation’s GDP. It is currently a vital sector, serving both domestic and international markets.
Government initiatives including the Production-Linked Incentive (PLI) scheme, the ‘Make in India’ campaign, and liberalized Foreign Direct Investment (FDI) policies, along with public-private partnership (PPP) models for various public undertakings, are propelling this growth.
To reach India’s ambitious goal of $1 trillion in merchandise exports by 2030, exports must rise from the current $450 billion to $1 trillion, necessitating a year-on-year growth rate of 12 percent, according to the report.
India’s global merchandise export share has increased from 0.9 percent in 2005 to 1.8 percent in 2023. Merchandise exports have experienced a 3-year CAGR of 18.8 percent from FY21 to FY24 and a 5-year CAGR of 9.4 percent from FY19 to FY24.
“India is on track to become a favored destination for manufacturing investments, thanks to the availability of raw materials, low labor costs, a competitive corporate tax rate for manufacturing, and proactive government incentives,” stated Ashwini Shami, EVP and Portfolio Manager at OmniScience Capital.
The government is working on 11 industrial corridor projects as part of the National Industrial Corridor Development Programme (NICDP), which will unfold in four phases across the country.
As of July 31, 2023, the DPIIT has sanctioned and allocated Rs 9,900 crore for the industrial corridor initiative, with Rs 9,817 crore already utilized. This is projected to generate 1 million direct jobs and up to 3 million indirect jobs, contributing to socio-economic upliftment.
Point of View
I believe that India's push towards a robust industrial sector reflects its commitment to economic growth and sustainability. The government's proactive measures and the increasing role of manufacturing will likely position India favorably in the global market, ensuring that the nation continues to thrive.
NationPress
09/06/2025
Frequently Asked Questions
What is India's projected GDP contribution from the industrial sector by 2035?
India's industrial sector is expected to contribute 30-32 percent to the GDP by 2035.
How much is the manufacturing sector expected to contribute to the GDP?
The manufacturing sector is projected to account for more than 20 percent of the GDP by 2035.
What is India's merchandise export target by 2030?
India aims to achieve a merchandise export target of $1 trillion by 2030.
How many jobs are expected to be created by the industrial corridor projects?
The industrial corridor projects are expected to generate 1 million direct jobs and up to 3 million indirect jobs.
What initiatives is the government implementing to support the manufacturing sector?
The government is implementing initiatives like the Production-Linked Incentive (PLI) scheme and the 'Make in India' campaign to support manufacturing.
