Electronics, textile to drive India’s manufacturing exports to $1 trn by 2028: Report

New Delhi, July 13 (KNN) India’s manufacturing exports are expected to reach the USD 1 trillion mark by 2028, said a report.

According to Bain and Company’s report key industries driving growth include chemicals (USD 110-130 billion), electrical & electronics (USD 120-145 billion) and textiles & apparel (USD 95-110 billion).

It also includes exports from automotive (USD 45-55 billion), pharmaceuticals (USD 45-50 billion) and industrial machinery (USD 70-75 billion). 

The growth will be amplified by production capacity expansion, government policy support, heightened M&A activity and investments, said the report titled ‘The Trillion-Dollar Manufacturing Exports Opportunity for India’.

"The positive developments in the manufacturing sector, driven by production capacity expansion, government policy support, heightened M&A activity, and PE/VC-led investment, are creating a robust pipeline for the country’s sustained economic growth in the years to come." said Deepak Jain, partner, Bain and Company and co-author of the report.

“Despite possible recessionary and inflationary pressure, fundamentals for India’s manufacturing sector remain strong. The mega-trends will continue to play out during the course of this decade which will accelerate India’s manufacturing-led exports," Jain said.

“India’s USD 1trillion manufacturing exports will be driven by growth in the priority sectors over the course of this decade. Chemicals, auto, electronics, pharma, textiles & industrial machinery will lead the growth due to their readiness in terms of export potential and will contribute 50-60% share of manufacturing exports. This will be followed by metals & minerals, food and transportation," said Sushil Pasricha, expert partner, Bain & Company and co-author of the report.

The manufacturing sector has been witnessing increased capex inflows and heightened M&A activity leading to a surge in manufacturing output and resultant increased contribution to exports. (KNN Bureau)