Newsletter November, 2024

During high GDP growth phases for our South East Asian peers like China, Thailand, Indonesia and Vietnam, manufacturing had been one of the largest contributors; China for instance during its high growth phase of 1990 to 2005 where its GDP grew by 9.8% CAGR witnessed the share of manufacturing increase from 9.1% in 1990 to 32% in 2005. Given the Government’s thrust to boost
manufacturing in India over the next decade through measures like announcement of PLIs (Production Linked Incentives), introduction of BIS across several sectors like footwear, LED lighting, switchgears, etc, we believe several sub-sectors within manufacturing are well poised to experience a disproportionately higher growth relative to the last decade.