World Economy

Achieving Modi’s 2022 Target Difficult

Achieving Modi’s 2022  Target DifficultAchieving Modi’s 2022  Target Difficult

Considering the rate at which the Modi government’s ambitious ‘Make in India’ initiative is progressing, its target of creating 100 million jobs and achieving 25% of GDP from manufacturing sector by 2022 may be difficult to meet, says a recent survey.

Though the performance of the manufacturing sector has improved in the past few months, the progress is not enough to achieve the targets of ‘Make in India’ drive, according to a joint report by research firm The Boston Consulting Group and apex industry chamber Confederation of Indian Industry, PTI reported.

The policy has envisaged manufacturing to contribute around 25% to the overall gross domestic product, but as per the statistics, manufacturing growth has not been able to keep up with the GDP growth.

While the country’s share in the global GDP increased from 2.2% in 2009 to 2.5% in 2013, its share in the global manufacturing has decreased from 2.2% to 2% during the same period.

According to the report, in contrast to the ‘Make in India’ target, manufacturing still accounts for only 17% of India’s GDP and has remained stagnant at this level for the last five years.

On the contrary, strong manufacturing economies have more than 20% of their GDP coming from this sector.

The report further noted that manufacturing exports increased from $188 billion in 2011 to $203 billion in 2014. India’s share in global market still remains at 1.55%.

“As expected, this shortfall is reflected in job creation in this sector. ‘Make in India’ aspires to create 100 million jobs by 2022 in the manufacturing sector.

“However, in reality, only four million jobs are estimated to have been created in the sector since 2010. Extrapolating this growth of 1.5%, we will fall short of the target by 92 million jobs by 2022,” the report said.