6 Sectors to Drive Manufacturing Export Are
1. Chemical Industry
Exports of chemicals from India are projected to grow at 23% CAGR (USD 130 billion) by 2028. As the chemical industry offers a plethora of export opportunities and requires less investment, this sector is identified as the major sector to drive the growth of manufacturing export. Additionally, the emergence of contract manufacturing services and PLI schemes have attracted huge investments in the sector that has surged manufacturing and exporting. Speciality chemicals, agrochemicals, construction chemicals, dyes and pigments, flavors and fragrances are identified to be the key growth segments. The chemical industry in India was valued at USD 178 billion in 2019 and is projected to reach USD 304 billion by 2025 contributing 3% to the global chemical industry. The Indian government has set up a 2034 vision for the chemicals and petrochemicals sector to increase production and create export business opportunities to encourage domestic manufacturers. India is the 6th largest producer of chemicals and manufactures more than 70,000 commercial products. If you are looking to start the chemical industry, connect with SolutionBuggy and get all the services from concept ideation to complete industry setup. Our chemical consultants having more than 20 years of experience handhold you in every step to start and grow your industry.
2. Pharma Industry
India’s pharmaceutical exports are projected to grow at 18% CAGR (USD 50 billion) by 2028. Biologicals and bulk drugs in API and drug intermediates are identified as potential segments in the pharmaceutical industry. In 2021, Ms. Nirmala Sitharaman announced an outlay of USD 26,578.3 million to boost 13 sub-sectors of the pharma industry to increase their production and create export opportunities. India is the largest provider of generic drugs globally and supplies over 50% of the global demand for various vaccines. More than 80% of antiretroviral drugs used across the globe to cure AIDS are supplied from India. India is rightfully known as the “pharmacy of the world” as it ranks third worldwide for the production of pharmaceuticals by volume and 14th by value. Pharma consultants in SolutionBuggy help you to formulate innovative pharma products as per the latest market trends and provide detailed knowledge and services to set up the pharmaceutical manufacturing industry.
3. Electronics Industry
The electronics industry is estimated to grow at 40% CAGR (USD 145 billion) by 2028 as the sector is propelled by schemes like PLI, Merchandise Exports India Scheme, and Scheme for Promotion of Manufacturing of Electronic Components. Mobile phone exports are identified as a key segment in this sector. India is set to be a global leader in mobile phone manufacturing as mobile phone production in India has increased fivefold in the past five years. Domestic electronics production in India has increased significantly from USD 29 billion in 2014 to USD 67 billion in 2021. The major products that play a vital role in boosting India’s electronics industry are consumer electronics (TV), IT hardware (Laptops), printed circuit board assembly (PCBA), electronic components, industrial electronics, LED lighting, strategic electronics, etc. The USA is the largest importer of India’s electronic exports followed by UAE, China, Netherlands, and Germany. SolutionBuggy with a team of 500+ electronics consultants provide all the services to manufacture any electronics products such as consumer electronics, industrial electronics, PCB, electronic components, etc.
4. Automotive Industry
Automotive exports are projected to grow at 18% CAGR (USD 55 billion) by 2028, including EVs. The announcement of USD 3.5 billion outlay by the Indian government has boosted the production of clean technology vehicles and their components, and will further propel the electric vehicles market. The automobile industry in India is the world’s 5th largest and it is expected to reach US$ 300 billion by 2026. In 2020, 26.36 million vehicles were manufactured in the country and 4.77 million vehicles were exported dominated by Two-wheelers and passenger vehicles. The Indian government announced a PLI scheme for automobile and auto components worth USD 3.49 billion and it is expected to bring investments of over USD 5.74 billion by 2026. Automotive consultants in SolutionBuggy having 25+ years of experience help you in both technical and commercial aspects of your automobile product and build a strategy to grow your business.
5. Textile Industry
India’s textile exports are projected to grow at 16% CAGR (USD 110 billion) by 2028 as the sector is driven by factors such as the availability of complete value chain from raw materials to finished goods, easy market access, low cost of manufacturing, favorable government policies and many more. Man-made fiber and technical textiles dominate the sector and provide growth opportunities for new entrants. India is the world’s second-largest producer of textiles and it is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The Indian government has announced the PLI scheme worth INR 10,683 crore along with the Mega Integrated Textile Region and Apparel (MITRA) Park scheme worth Rs. 4,445 crores (US$ 594.26 million) to encourage the manufacturing and exporting of textiles. Textile consultants in SolutionBuggy provide turnkey project services for entrepreneurs looking for quick and cost-effective solutions
6. Industrial Machinery
Industrial machinery exports are projected to grow at 20% CAGR (USD 75 billion) by 2028. Industrial machinery ranges from simple tools to heavy machines required for energy production. Technological advancements have improved manufacturing speed, quality and production capacity which is one of the primary factors for the industrial machinery market growth. The industrial machinery market size was valued at USD 184,336 million in 2019 and it is expected to reach USD 263,250 million by 2027 at a CAGR of 5.3% during 2019-2027.
India’s Export Growth Is Driven by These 6 Megatrends
- Government initiatives to propel manufacturing activities.
- Supply chain diversification.
- Heightened merger and acquisition activity.
- Sectoral advantages in manufacturing.
- Capital expenditure infusion into manufacturing sectors.
- Private equity/venture capital (PE/VC)-led investment in manufacturing.
Are You Looking to Start and Scale Up Your Manufacturing Industry?
SolutionBuggy is recognized as the leading manufacturing consulting platform in India due to its tremendous track record of serving manufacturing industries by playing a significant role in their humongous growth and transformation. We have a team of 10,000 consultants to provide all the services required to start and scale up your manufacturing industry. If you are looking to export your products, we handhold you in every step. We analyze market trends and provide proven strategies to capture the opportunity and grow as a market leader. Connect with SolutionBuggy and get cost-effective solutions from India’s top manufacturing consultants.