Manufacturing must grow 12% to hit $1 tn: CII Pawan Goenka

The manufacturing economy needs to grow 12% every year to reach $1 trillion, with a focus on eight key sectors, said Pawan Goenka, chairman, CII Manufacturing Council. The Department of Industrial Policy and Promotion has roped in the Confederation of Indian Industry (CII) to formulate a roadmap for achieving $1 trillion manufacturing economy by 2025. Terming the target “a tall order” but not impossible to achieve, Geonka, who is also managing director of Mahindra & Mahindra, said, “The slope is 7% growth, but that will not get us to $1 trillion. It will get us maximum to $650 billion. To get to $1 trillion, we have to grow at 12%.”

Official estimates peg India’s manufacturing economy at around $310 billion in 2017-18 and Goenka said manufacturing needs to grow by a factor of three. According to the roadmap, automotive, textiles, chemicals, electronics, capital goods, food processing and metals and mining are the eight focus sectors, seven of which have the largest manufacturing gross value added. Electronics, he said, has a potential for highest growth because of India’s huge imports.

However, Goenka said that not all will help create jobs. “Traditional industries of textile will create jobs. While electronics may not create jobs but this will reduce the trade deficit,” he said. Similarly, while automobile original equipment manufacturers may not create jobs as they would go for automation, their suppliers will create jobs.


Make in India is also a glass half full, the CII Manufacturing Council chairman said. “We have suggested the government look at sectors that will have the biggest impact. This doesn’t mean the other 17 are not important. We have said these should be the focus or else it is difficult to make meaningful progress.”